The University of North Texas encourages the use of compensatory time whenever possible in lieu of cash payment; however, in circumstances as described in University Policy 1.4.2 Compensatory Leave and Overtime, FLSA non-exempt employees MAY be paid for compensatory time banked within the EIS Time & Labor if the following conditions are met:

1. The Department must have on file a signed and dated authorization statement from their Vice President indicating authorization to pay cash overtime to eligible salaried employees. The form UPO-15 may be used for this purpose, or a signed memorandum may be used. The authorization statement may be a blanket statement that permits the department to pay any accrued overtime at any time, or it may specify the circumstances under which some overtime may be paid, or it may be for making a one-time payment.

2. Exceptions: an authorization statement is not required in the following circumstances: if the cash payment is made at termination of salaried employment, if the cash payment is for comp time above the 160 hours worked/240 hours balance cap for 1.5 come time for salaried employees, and for all hourly employees, who are not eligible for accrual of compensatory time but are paid directly through Time & Labor as overtime is earned.

3. The authorization statement replaces the current authorization signature on the HRM-10. The statement will be subject to audit and must be maintained on record by the Department as supporting documentation. It is not to be turned in to Payroll or Human Resources for authorization of the payment.

4. The employee must have a balance of time accrued in EIS Time & Labor. Time must be processed through Time Administration within Time & Labor before it is available for payment. Comp time balances are viewable at Home > UNTS Time and Labor > Department > View > Comp Time Balances by EmplID number.

5. The Department must have, or it must arrange for, funding for payment. Generally the funding will be the same as the employee’s regular funding account for payment of salary, and no special action is required if the account or accounts are the same. If it is necessary to fund overtime payments from an alternative source, the account number will need to be specified to the Payroll Office by memorandum or email.

6. Non-exempt staff performing additional assignments related to their occupational category but outside their regular assignment must be paid by their primary department timekeeper authorizing overtime through Time & Labor and not by separate hourly appointments; time reporting for additional assignments must be coordinated with the primary department timekeeper.

7. Special provisions apply regarding comp time accrual for part-time salaried non –exempt employees as stated by policy. Comp time is not earned until the non-exempt employee’s total of paid leave and hours worked exceeds 40 hours. They must be paid through Time & Labor for all hours worked above their normal schedule up until 40 hours per week.

8. Comp time to be paid must be processed as time utilized through Time & Labor at Home > UNTS Time and Labor > Department > Use > Weekly Elapsed Time using the appropriate Time Reporting Code either CP1 for 1.0 time or CP5 for 1.5 time. To ensure a correctly calculated payment on the desired payroll, comp time to be paid must be reported in the correct time period and approved for payment by the scheduled deadline specified by the Payroll Office in the monthly Payroll Deadline distribution calendar.

9. A pay out of comp time will be entered into Time & Labor in a 1.5 status to expense the 1.5 comp time balance; the Time Administration system will reduce the time to a 1.0 status and then apply the appropriate 1.5 FLSA rate of pay. Example: an employee works 2 hours overtime and earns 3 hours comp time at 1.5. The timekeeper enters 3 hours for pay at 1.5 using code CP5. This reduces to 2 payable hours at the 1.5 FLSA rate. This is different from the present manual calculation.

10. Comp time payable on transfer from non-exempt to exempt status must be reported for payment on a date prior to the transfer to the exempt status position.

11. Comp time payable at termination of employment must be submitted for payment prior to the termination of the employee’s record in EIS.

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For questions regarding any of the above information please contact the Compensation area of Human Resources at 940-565-4245 or 4244.