Please note the following requirements with regard to paying overtime. If after reviewing this information you have any questions, please feel free to contact Debbie Farris in the Disbursements Office, extension 5004.
Which employees are eligible for overtime pay?
Only non-exempt employees are eligible to receive overtime pay. The FLSA (Fair Labor Standards Act of 1938) pertains to non-exempt employees and requires that these employees be paid overtime and that their positions are subject to a minimum wage. Non-exempt job categories at Rider include AFSCME, security, facilities, non-bargaining support positions and certain OIT support staff. These job categories must receive overtime pay for any work completed beyond the institution’s normal workweek hours. Rider’s workweek is from Monday at 12:01 a.m. to Sunday at midnight.
Exempt employees are not covered by the FLSA. Among those kinds of positions that are exempt from coverage under the FLSA are executive, administrative, and professional employees. These jobs do not receive overtime pay even though the employees may be working additional hours beyond the organization’s normal workweek.
What is overtime?
Overtime is calculated on hours worked per week, not hours worked per day. Overtime is assessed on any hours worked over 37.5 per week for AFSCME or semi-monthly employees and for any hours worked over 40 per week for facilities, security and for some bi-weekly employees. Overtime calculations for the summer are based on the University’s reduced summer work schedule.
All hours paid--including vacation, holidays, emergency closing, jury duty, personal time and sick time--count toward overtime calculations.
How is overtime paid?
Overtime is paid at 1-1/2 times the regular rate of pay. (There are circumstances under which an employee would receive more than 1-1/2 times the regular rate of pay, for example, when working on a holiday. Please refer to the AFSCME Contract and the Non-Exempt Employee Handbook for details.)
Can I give "comp time" in lieu of paying overtime?
No. In New Jersey overtime must be paid as wages. You cannot give time off in a later week, even if it is at 1-1/2 times the number of overtime hours worked. Remember, overtime is based on the week not the day. An employee, with supervisory permission, can work an extra hour one day and leave an hour early the next day, as long as the hours are all in the same workweek.
Can I pay a non-exempt employee a "stipend" for a project?
No, if a non-exempt employee works on a project, they must be paid for the actual hours worked, not a one-time stipend amount.
Can my employees "volunteer" their time for a project?
No, a non-exempt employee who works on a project must be paid overtime for the time worked if the work is similar to the individual’s normal duties.
Do exempt employees (managers, administrators, supervisors) receive overtime?
No, these employees are "exempt," from overtime, as stipulated by the FLSA. Exempt employees are paid for the job they do and are expected to work, as necessary, until the job is finished, even beyond the regular workweek, in the evenings and on weekends. They do not receive pay for extra hours worked, either in straight pay or at 1-1/2 times their hourly pay.
Exempt employees are expected to take responsibility for their own schedules and can, on occasion, take time off from work in order to meet personal needs. This additional time from work must be approved in advance by the supervisor and must not conflict with office operations. One example of an inappropriate use of time is adding all of the hours worked beyond the normal workweek in one month and allowing the employee to take off in the future a full week not charged to a floating holiday or vacation time. Another inappropriate use is to provide hour for hour time off for all hours worked beyond the regular 37.5-hour administrative workweek.
Any questions regarding additional time off for exempt employees should be directed to the Human Resources Department, extension 5683.