Federal Compensatory Time
This applies only to non-exempt employees who physically work more than 40 hours in a workweek, not including paid leave hours or holiday hours.
Federal compensatory time is computed at a rate of 1.5 hours for each hour physically worked over 40 hours.
Example: A non-exempt employee who physically works 42 hours in a workweek is entitled to three hours of federal compensatory time ( 42 hours – 40 hours = 2 hours * 1.5 = 3 hours of overtime ). Federal compensatory time does not expire and will remain available until the employee either uses these hours or is paid for them, in accordance with HOP 4.12 Overtime for Non-Exempt Employees
State Compensatory Time
This applies to both exempt and non-exempt employees as outlined below.
State compensatory time is computed and earned on an hour-for-hour basis and must be used within 12 months of the end of the work week in which it was earned, or it will expire.
When a non-exempt employee does not work more than 40 hours in a work week, but the number of hours physically worked plus the number of hours of holiday or other paid leave taken during the work week exceeds 40 hours, the employee is entitled to state compensatory time off at the rate of one hour off for each of the excess hours.
Example (non-exempt): A non-exempt employee did not work more than 40 hours during the work week, but the combination of hours physically worked (38 hours) and any leave time taken (8 hours of paid leave) exceeded their designated 40-hour work schedule. Under state compensatory time rules, they are entitled to six hours of state comp time.
Calculation: 38 worked + 8 hours of paid leave taken = 46. 46 – 40 (hours designated to work) = 6 hours of state compensatory time earned.
Exempt Employees (Classified)
If the hours reported during the work week are greater than the hours designated to work, the employee earns non-holiday state compensatory time.
Example (exempt): An exempt employee works two hours over their 40-hour designated work schedule, for a total of 42 hours. Under state compensatory time rules, they are entitled to two hours of state comp time.
Calculation: 42 hours worked – 40 (hours designated to work) = 2 hours of state compensatory time earned.
Exempt Employees (A&P)
A&P employees are not eligible for state compensatory time, except as outlined in HOP 4.27, under Holiday State Compensatory time rules, which states that A&P employees are eligible to earn state compensatory time only for the hours worked on a holiday or skeleton crew day.
Combination of Compensatory Time (Federal and State)
While the rules are mutually exclusive, it is possible for a non-exempt employee to earn both types of compensatory time (federal and state) during the same work week.
More information regarding federal overtime and compensatory time can be found in HOP 4.12 Overtime for Non-Exempt Employees and HOP 4.27 State Compensatory Time. An example calculation for a combination of compensatory time can be found here.
Before any classified employee works in excess of their regularly scheduled hours, or before they use accrued compensatory time, they must receive approval from their supervisor. Please encourage employees with compensatory time to use those hours as soon as possible and before vacation or floating holidays.
To learn more, view Payroll's timesheet job aids.