Overtime and Compensatory Time Policy Template

This overtime and compensatory time policy template has 3 pages and is a MS Word file type listed under our human resources documents.

Sample of our overtime and compensatory time policy template:

OVERTIME & COMPENSATORY TIME POLICY INTRODUCTION The Overtime and Compensatory Time Policy of [COMPANY NAME] establishes guidelines and procedures for overtime work and the accrual of compensatory time. This Policy ensures that overtime is managed fairly, and compensatory time is provided to eligible employees in compliance with legal and organizational requirements. PURPOSE The purpose of this Policy is to: Define overtime and compensatory time and distinguish between them. Provide a framework for the fair and consistent application of overtime and compensatory time practices. Ensure compliance with applicable labor laws, including the Fair Labor Standards Act (FLSA). OVERTIME DEFINITIONS Overtime: Overtime refers to hours worked by non-exempt employees in excess of the standard workweek or workday, as defined by the organization. Overtime hours are compensated at a premium rate, typically one and a half times the regular hourly wage. Compensatory Time (Comp Time): Compensatory time is time off provided to eligible employees in lieu of immediate overtime pay. The use and accrual of comp time are subject to specific rules and limits. OVERTIME ELIGIBILITY Non-exempt employees are eligible for overtime pay or compensatory time. Exempt employees are not eligible for overtime or compensatory time. OVERTIME COMPENSATION Non-exempt employees who work overtime will receive compensation for those hours worked beyond the standard workweek or workday. Overtime compensation will be provided at the applicable premium rate, per legal and organizational requirements. COMPENSATORY TIME ACCRUAL Compensatory time accrual is allowed for eligible non-exempt employees as an alternative to immediate overtime pay. The following guidelines apply: Eligible employees may accrue comp time at a rate of 1.5 hours for each hour of overtime worked. Accrued comp time may not exceed a maximum balance of [SPECIFY MAXIMUM HOURS/DAYS] and must be used within [SPECIFY TIMEFRAME]. COMPENSATORY TIME USAGE Eligible employees have the flexibility to utilize accrued compensatory time under the following guidelines: Management Approval: The usage of compensatory time is subject to management approval. Supervisors or department heads will evaluate requests based on workload considerations, operational needs, and the overall well-being of the employee and the organization. Discretion: Eligible employees may use compensatory time at their discretion, provided it is within the bounds of management approval