Policy Highlight: Compensatory Time Off

Concise insights into the policies that impact our workplace and empower our employees

Each month, the Office of Human Resources will highlight a policy, enhancing awareness and ensuring leaders are well-informed. This will provide education and clarification to supervisors on policies relevant to to managing employees at the University. Additionally, this series of articles will enhance awareness and understanding of key institutional policies for our supervisors.

February’s Highlight: Compensatory Time Off

Per FLSA, NDCC 34-06-04.1 and NDUS HR Manual Section 12 – Overtime, UND has established a policy regarding Compensatory Time Off (Comp time). Employees may be considered “exempt” or “non-exempt” from FLSA requirements. Exempt employees are not allowed the option to receive overtime pay or compensatory time for hours worked in excess of 40 hours per week. An employee’s position description will indicate if the employee is exempt from overtime.  Comp time is an option available for departments to utilize in lieu of paid overtime compensation for non-exempt employees. Employees cannot be required to accept comp time instead of receiving overtime payments.

Policy Statement

Nonexempt University of North Dakota (UND) employees who work more than 40 hours in a work week will be compensated in one of two ways: overtime pay or compensatory time off (comp time). It is a department’s decision whether to offer comp time. If compensatory time off is offered by the department, the employee may determine whether they receive comp time or overtime pay for time worked over 40 hours in a work week.

Employees must receive approval from their supervisors prior to working overtime.

*Hours worked beyond the limit are paid as overtime. Departments may set a lower maximum accrued limit, which must be shared with employees in writing.

**If unused before expiration, compensation time is paid out automatically.

Implementing in the Workplace

Prior to accruing overtime or compensatory time, the employee must receive permission before work is performed. While a written agreement is not required, it is advised. Following approval to accrue comp time, all hours must be tracked by the supervisor and employee to ensure accrual rates and limits fall within policy. Usage of comp time must also be approved by the employee’s supervisor. Following the usage of comp time, the employee must report comp time use in the absence management module of Peoplesoft HCM.