B2.1 Policies Affecting Time Reporting
The department payroll preparer is responsible for reporting time in accordance with the terms and conditions outlined in the applicable personnel policies and collective bargaining agreements. The policies and bargaining agreements specify conditions governing such payments as overtime, shift differentials, on-call, call-back, stipends, sabbaticals, hazard pay, holiday pay, and leaves with and without pay. The conditions contained in the policies and bargaining agreements change from time to time and should be consulted on a regular basis by department payroll preparers and reviewers.
Current versions of all policies and bargaining agreements may be found online on the University of California Systemwide Policies and Guidelines page. Paper copies are available from the appropriate human resources offices.
B2.2 FLSA Requirements Affecting Time Reporting
There are some types of payments, such as overtime and compensatory time, that are regulated by the Federal Fair Labor Standards Act and apply to all employees based on the FLSA exemption status of their positions or title codes. The exemption status of each title code can be found in the campus title and pay plans published by the human resources offices. Positions are either exempt from the pay and overtime requirements of the FLSA or they are non-exempt. Only non-exempt positions are eligible to receive premium (e.g. time and one-half) overtime.
Reporting Time for Exempt Employees
Exempt employees regularly receive a predetermined salary each pay period, and the amount is not subject to reduction because of variations in the hours they work. In addition, exempt employees are not eligible to receive any compensation for straight overtime, premium overtime, compensatory time, call-back, on-call, shift differential or extra compensation for holiday work. Use of vacation and sick leave is recorded in one-day increments. Absences of less than a day (or less than a regular shift for part time employees) are not charged against accrued leave time. When an employee has exhausted all available accrued vacation and sick leave, salary is not reduced ("docked") for absences of less than a full day. Work schedules may fluctuate and vary based on operational need, but exempt employees are not required to record their work time for purposes of receiving their established salary.
Reporting Time for Non-Exempt Employees
Non-exempt employees are required to account for time worked as well as the use of sick, vacation, compensatory and other leave time to the nearest one-quarter hour. When an employee has exhausted all available accrued vacation leave, sick leave and compensatory time, salary is reduced ("docked") in proportion to any absences from scheduled work time. Non-exempt employees are compensated for qualified overtime hours at the premium (time and one-half) rate.
Under most policies and bargaining agreements for non-exempt employees, hours on pay status over 40 hours during a workweek are overtime. To compute the number of hours subject to pay at the premium rate, it is necessary to determine the number of hours actually worked during the workweek. In the examples given below, overtime premium at time and one-half is for actual hours of work in excess of 40 hours per week. More specific examples of each case below can be found in Section G.
Overtime Example #1 - If an employee is required to work on a holiday and also works the other 32 hours during a workweek, there is no premium overtime. (Note: Holiday pay is reported as regular time; the time worked on the holiday is reported as overtime.)
Regular Time 40 hours Overtime Straight 8 hours Overtime Premium 0 hours Actual Hours Worked 40 hours Hours Paid 48 hours
Overtime Example #2 - An employee is on sick leave for 8 hours during a workweek in which the employee works 9 hours of overtime. (Note: Hours paid for sick leave are reported as regular time.) The time is defined as follows:
Regular Time 40 hours Overtime Straight 8 hours Overtime Premium 1 hour Actual Hours Worked 41 hours Hours Paid 49 hours
Overtime Example #3 - An employee takes two hours of vacation during a workweek and also works 12 hours of overtime. (Note: Hours paid for vacation leave are reported as regular time.) The time is defined as follows:
Regular Time 40 hours Overtime Straight 2 hours Overtime Premium 10 hours Actual Hours Worked 50 hours Hours Paid 52 hours