Compensatory Time 6-12-13
CITY OF SCHERTZ
EMPLOYEE HANDBOOK
Compensatory (Comp) Time
PREPARED BY: Human Resources
APPROVED BY: City Council
DATE APPROVED: 6/11/2013
EFFECTIVE DATE: 6/12/2013
REPLACES VERSION: 4.1.6
Purpose
Compensatory time off (“comp time”) is paid time off that may be earned and accrued by
non-exempt employees in lieu of immediate cash payment for working overtime hours.
Policy
All regular full-time employees classified as non-exempt shall be paid at one and one-
half times their regular rate of pay, as defined under Fair Labor Standards Act (FLSA),
for hours worked in excess of their regular work weeks or regular work periods. Non-
exempt employees may, however, accrue compensatory time in lieu of overtime pay.
FLSA prohibits an employer from requiring an employee to accept comp time off for
overtime hours worked. An employer may grant comp time for overtime hours worked in
lieu of overtime pay upon employee agreement.
Applicability
All regular non-exempt full-time employees are eligible to accrue comp time. Exempt,
part-time, seasonal, and/or temporary employees are not eligible to accrue comp time.
Accruing Comp Time
When practical, overtime and comp time should be avoided but, if necessary, should be
scheduled by the appropriate supervisor. Employees must receive prior approval from
their supervisor prior to working over and beyond regular work schedules where comp
time or overtime would begin to accrue. Working unauthorized hours or overtime by
employees shall be considered grounds for disciplinary action.
Supervisors and employees should discuss whether overtime or compensatory time will
be accrued before any work is scheduled by the supervisor or performed by the
employee. Again, an employer may grant comp time for overtime hours worked in lieu of
overtime pay upon employee agreement.
Comp time will accrue for employees at a rate of one and one-half (1 ½) hours for every
hour worked in excess of the standard 40-hour work week. Employees who do not work a
standard 40-hour work week (i.e. Police, Fire, and EMS employees and who are covered
under 207(k) of the FLSA and applicable provisions of state law) will accrue comp time
based on FLSA standards for their work cycle.
CITY OF SCHERTZ
EMPLOYEE HANDBOOK
The maximum accrual for comp time for employees is as follows:
Employees assigned to a standard 40-hour work week may accrue up to 40
hours at any given time.
Employees assigned to a 56-hour work week may accrue up to 36 hours at any
given time.
EMS employees on 24-hour shifts may accrue up to 72 hours at any given
time.
Employees who have reached their maximum comp time accruals will be paid for any
overtime worked in accordance with the Fair Labor Standards Act.
Carrying Over Comp Time
Comp time accruals may carry over into the beginning of each subsequent fiscal year for
employees. The maximum number of hours that may be carried over by employees is as
follows:
Employees assigned to a standard 40-hour work week may carry over up to 20
hours into the beginning of the subsequent fiscal year.
Employees assigned to a 56-hour work week may carry over up to 36 hours
into the beginning of each subsequent fiscal year.
EMS employees on 24-hour shifts may carry over up to 48 hours into the
beginning of each subsequent fiscal year.
Any comp time that an employee is unable to carry over into each subsequent fiscal year
will be paid at his/her regular rate of pay.
Use of Comp Time
Comp time accrued and used by employees shall be recorded and then forwarded to
payroll where they will be maintained as official records. Comp time accrued in any
given pay period shall not be used during that same pay period.
Employees may take comp time off at the discretion of their direct supervisor. Comp time
off must not unduly disrupt departmental operations and must have prior supervisory
approval.
City policy requires all applicable leave to be exhausted prior to authorizing an unpaid
leave of absence for any employee. Therefore, comp time and vacation leave will
automatically substitute an insufficient balance of sick leave or other requested leave
according to the following schedule:
Vacation Comp Time
CITY OF SCHERTZ
EMPLOYEE HANDBOOK
Pay Outs for Comp Time
Employees will be paid for accumulated, unused comp time upon separation of
employment at their regular rate of pay, regardless of the reason for employment
separation.
If an employee is promoted from a non-exempt to an exempt position, any accrued,
unused comp time shall be paid out at the employee’s regular rate of pay for the position
held before the promotion.
Any time that an employee with accrued comp time accruals transfers to another
department, his/her hours accrued shall be cashed out at their current hourly rate of pay.