Faculty Policies and Procedures
Faculty and Academic Staff Overtime and Time Tracking Policy and Procedure
Faculty Policies and Procedures
Faculty and Academic Staff Overtime and Time Tracking Policy and ProcedureApplies to all Faculty and Academic Staff classified as non-exempt under the Fair Labor Standards Act (FLSA).
The Fair Labor Standards Act (FLSA) is a federal act that requires payment of overtime and the minimum wage for all employees considered “non-exempt” under the Act. In addition to the overtime requirement, the law requires the tracking of time of those employees who are non-exempt. There is no such requirement for exempt employees.
Overtime: Overtime is defined under the FLSA as hours worked in excess of 40 during a single workweek. Paid leave time is not considered time worked and cannot be counted toward the 40 hour per workweek overtime calculation.
At MSU, overtime must be approved in advance by the employee’s supervisor. Employees working overtime without prior approval are subject to discipline up to and including discharge.
Compensable time: A non-exempt employee is entitled to compensation for all hours worked. If a supervisor allows an employee to work, or has reason to believe an employee has worked certain hours, the University is responsible for compensating the employee for those hours. A nonexempt employee cannot waive the right to compensation for hours worked.
Compensatory time off: A non-exempt employee may be paid compensatory time in lieu of overtime pay. This must be paid at a time-and-a-half rate as well (e.g., an employee who works 5 hours of overtime is entitled to 7.5 hours of compensatory time). Compensatory time must be mutually arranged between the employee(s) and the supervisor (see Faculty and Academic Staff Compensatory Time Policy & Procedure for details). For hourly employees, supervisors must track compensatory time earned and taken in the HR/Payroll System through the EBS portal. For salaried employees, supervisors must track compensatory time earned within the unit's records.
Flexible time: At the supervisor’s discretion, an employee’s work schedule may be adjusted or flexed within a workweek. However, this does not abdicate the requirement to pay overtime for all hours worked over 40.
Part-time: Part-time, non-exempt employees will report all time worked, just as full-time employees will. They will earn overtime only after 40 hours worked in a week. They will receive straight time pay or compensatory time for all time worked under 40 hours in a week, even if hours worked are in addition to the employee’s normal schedule.
Time tracking procedures: All Faculty and Academic Staff classified as non-exempt must accurately track and record their hours worked each day, as well as leave taken, using this time sheet. Time will be tracked to the nearest tenth of an hour. Supervisors must review and verify non-exempt employees’ time, entered on their time sheets, weekly.
Procedure for time reporting for salaried employees: Supervisors or unit time administrators must keep a record (at the unit level) of the employee's hours worked, absences, and additional hours worked beyond their scheduled work hours. To pay overtime hours, calculate the amount owed, and submit payment on an Additional Payment Form. This payment does not need FASA approval.
Procedure for time reporting for hourly employees (in EBS): Supervisors or unit time administrators must also report all absences and additional hours worked beyond their scheduled work hours into the HR/Payroll System through the EBS portal by the time due for payroll processing. If an employee worked overtime, entering the hours will trigger the overtime payment in the next paycheck.
Supervisor Responsibilities:
Employee Responsibilities:
Supervisor/Unit Time Administrator Responsibilities:
Refer questions to:
Faculty and Academic Staff Affairs
fasaffairs@msu.edu
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