Office of Human Resources - HR Advisor
QUESTIONS?TEMPE/POLYTECHNIC WEST |
| POLICY SPP 404–04: Overtime General Policy |
Employee Pay and Work Hours
Payroll Procedures
Non-exempt Employees:
Time Worked and Overtime
Employees are responsible for reporting actual hours worked on a weekly basis. Supervisory or departmental designees must review and/or approve time off, compensatory time earned, overtime worked or reduction in pay each pay period.
Compensatory Time Earned vs. Paid Overtime
Per SPP 404-04: Non-exempt employees cannot work more than 40 hours during a work week unless the additional work is ordered and approved in advance by the supervisor.
Based on departmental policy, non-exempt employees who work more than 40 hours must receive either:
- Compensatory time earned
Report hours earned on Pay Correction Form (at 1.5 hours for each 1 hour worked over 40 hour/work week) by adding hours to comp time balance field. - Overtime paid
Report hours to be paid on the Pay Correction Form. Per SPP 404-04, a non-exempt employee must actually work more than 40 hours in a work week to earn overtime time at the premium rate (1 hour multiplied by 1.5 premium rate).
Example: A non-exempt employee physically worked 44 hours in a work week—or four hours over. Departments that pay overtime should submit an AP form for four hours using earnings type OTP (for premium pay at 1.5 rate). (To record compensatory time earned, submit an Pay Correction Form.)
A non-exempt employee who has actually worked 40 hours or less in a work week but whose combined work and paid leave hours exceed 40 hours, shall receive overtime pay at the standard rate (1 hour multiplied by 1 standard rate).
Example: A non-exempt employee physically worked 36 hours in a work week that included one holiday of eight hours—or four hours over.
Department must submit a Pay Correction Form for 4 hours using earnings type OTS (for standard pay).
Non-exempt Employee Overtime Reporting
All overtime payments to non-exempt employee must be recorded using one of the following overtime payment earnings types using the Pay Correction Form:
- OTS
Overtime at a straight time rate - OTP
Overtime at a time-and-a-half rate - OT2
Overtime at a double-time rate
NOTE: Pay Correction Form replaces both the Hours Adjustment (HA) form and the Additional Payment (AP) form.
Additional payments will calculate the total hours multiplied by the hourly rate.
Procedures for Non-exempt Employee Overtime
| WHO: | Departments |
| WHAT: | Use the work-week calendar to determine if overtime payments are necessary. Complete an AP form for each employee to receive overtime payments. |
WHEN: |
By 9am on the Exception Reporting deadline date for each payroll |
REMINDER: In calculating overtime, do not include time such as vacation, sick, holiday or compensatory time used.
The contents of this HR Advisor page is not intended to create a contract, either expressed or implied, between Arizona State University and its employees for either employment or any benefit or agreement. While the HR Advisor makes every effort to present accurate and reliable information, it does not establish or modify policies or procedures of your department, Arizona State University or the Board of Regents.