University Human Resource Services
Overtime Policy Changes
For Managers and Supervisors
Staff Bulletin (PDF)
Revisions to Indiana University’s Overtime policy will become effective May 16, 2010. The essential change is that the University will only count time worked to determine an employee’s eligibility for overtime compensation with just a few exceptions. Time off with pay no longer counts as time worked except when hours are applied to the following:
Adverse Weather (WTH)
Adverse Working Conditions (ADW)
Emergency Rest Time (ERT)
Holiday (including HOL and HTK)
Injury on the Job (INJ)
All other categories of paid time off, such as vacation, PTO, sick time, Income Protection, and compensatory time off, do not count as part of the 40 hours in a week to determine if overtime pay is applicable.
The overtime compensation will be at a time and one half rate either in the form of pay or compensatory time off. Time worked in excess of the daily schedule will count as overtime only when the total time worked for the week exceeds 40 hours.
When an employee uses paid time off applied to any of these other categories (vacation, sick, PTO, etc.), there may be hours worked outside of the employee’s regular schedule that do not qualify to be paid as overtime. These hours worked will be compensated at a straight time rate either in the form of pay or compensatory time off at the department’s choice. Two new payroll codes have been developed to use for these hours:
NEP Non-overtime eligible pay
NEC Non-overtime eligible comp time (no pay)
In units that permit flexible or alternate work schedules, adjustments may occur in the number of hours applied to time off. If a department has given the employee a flexible scheduling option or an arrangement is made prior to taking the time off the amount of time applied to vacation, sick, PTO or absent without pay time may be reduced so that the total of time off and time worked equals 40 hours with no NEP or NEC time.
Premium pay provisions, such as call back pay, stand-by pay, change of workdays without a 5 day notice, etc. are not affected by this change and remain at current rates.
In the following examples for full-time employees, time worked that is recorded as Regular (RGN for Support and Service Staff or RBP for PAO/PAU Staff) and all the time taken off must total 40 hours. Overtime will be the amount of overtime pay (OVT) or compensatory time-off earned (CPE) for the overtime hours. NEP or NEC will equal the number of straight-time hours that are worked outside of the employee’s regular schedule that do not qualify as overtime.
The Overtime policy can be found at hr.iu.edu/policies/uwide/overtime.html.
- A full or part-time Support, Service, and PAO/PAU Staff employee may be employed as an Hourly employee in another department and an Hourly employee may have multiple Hourly jobs.
- The compensation for overtime when an employee has more than one job will be based on a weighted average calculation for each week of work. This calculation uses the rates of all jobs for which work time was recorded during the week.
- For Staff employees with Hourly jobs, overtime will only be applied to the Staff job when time worked in the Staff job exceeds 40 hours in the week. Otherwise, the overtime will be applied to the time worked in the Hourly job.
- For Hourly employees with multiple Hourly jobs, the overtime will be applied to the job or jobs worked after exceeding 40 hours of work in the week.
- There are occasional and sporadic Hourly jobs such as ticket takers and special event ushers, which a Staff employee may be hired to perform. With advance authorization, these jobs are paid at the regular rate of pay for the job. Contact the campus Human Resources office if questions arise.
The Overtime policy may be found at hr.iu.edu/policies/uwide/overtime.html.