Personnel Policies
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Employee Discounts

Policy:  PSNE-5

Subject:  Overtime Pay for Employees Classified as Staff Nonexempt

Approval Date:  07/01/85
Revision Date:  04/30/93, 12/16/05, 09/15/05


To establish provisions for paying overtime to employees classified as nonexempt for hours worked in excess of 40 in a workweek in accordance with the Fair Labor Standards Act of 1934 (FLSA).  


As a rule, it is expected that the University's various workloads should be accomplished within the basic schedule of the workweek.  It is the policy of the University to discourage overtime work situations.  Each supervisor is responsible for organizing, scheduling, and staffing workloads in a manner that will avoid the development of overtime work situations wherever possible.

This policy applies to situations which require overtime work, such as the extension of departmental services with a resulting peak overload or unforeseen circumstances which prevent accomplishing the work during regular hours.

Overtime, if required, shall be performed only at the recommendation of the supervisor.


Overtime pay is based on time actually worked and is calculated at a rate of one and one-half times the employee's regular hourly rate for each hour worked beyond 40 hours in a workweek.  The University's workweek begins at 12:01 a.m. on Sunday and ends at 12:00 midnight on the following Saturday.  In determining total overtime worked, Hours paid but not worked, including but not limited to paid sick leave, vacation leave, or holiday pay during a week will be considered as work time in computing the 40 hours.  Work performed on University holidays is at the regular rate, unless it is overtime work.

Overtime provisions also apply when an employee works in more than one department.  If an employee normally works 37.5 hours per week in one department and performs services in another department, i.e. teaching a class, any hours worked between 37.5 and 40 are paid at the regular rate and hours over 40 are paid at the overtime rate.

Compensatory time off in lieu of overtime pay is prohibited by Kentucky Wage and Hour Laws.  Therefore, the employee must be paid for all overtime.


A full-time employee who works in excess of his/her regular weekly schedule but less than 40 hours in the week shall receive equivalent time off for such hours under 40.  Such equivalent time off is used for absences where vacation leave would be charged, is scheduled in the same manner as vacation, and is to be used for such absences before vacation leave is charged.

Its is permissable for the unit to pay out accumulated equivalent time by paying the employee for each hour accrued to reduce their accumulated equivalent time balance.  Such payments must be made at the regular hourly rate of pay received by the employee at the time of payment.

At the time of transfer to another unit, the transferring employee must be paid for all accrued equivalent time by the unit in which it was earned.  Such payment must be made at the regular hourly rate of pay received by the employee at the time of transfer.


For all employees, full-time and part-time, in positions classified as nonexempt a record of total hours worked must be maintained within the administrative unit for a period of three years.  Hours worked must be documented in three seperate categories: 1) regular time, 2) equivalent time (for employees whoch scheduled workweek is 37.5 hours), and 3) overtime.


Supervisorsare required to approve any work for nonexempt employees that in excess of their regular work schedule.  Nonexempt employees who engage in unauthorized overtime work may be subject to disciplinary action.  Supervisors should implement managemtn controls to assure that unauthorized overtime work is not being performed.


An employee who is called out by his/her supervisor outside their normal work schedule shall be credited with a minimum of two working hours.  This applies only to emergency situations in which the work to be performed has not been previously scheduled.