Par.

1. Purpose

2. References

3. Definitions

4. Delegations of Authority

5. Policy - Overtime Provisions

6. Policy - Compensatory Time Provisions

7. Policy - Other Premium Pay Provisions

8. Reporting Procedures

1. PURPOSE. To set forth rules and procedures governing use and reporting of overtime and compensatory time for employees of the Federal Highway Administration.

2. REFERENCES.

   1. Title 5 United States Code (U.S.C.) Chapter 53, 55, and 61,

   2. Fair Labor Standards Amendments of 1974 (Public Law 93-59),

   3. Title 5 Code of Federal Regulations (CFR) Parts 550, 551 and 610,

   4. Federal Employees Pay Comparability Act of 1990, Section 210, as amended January 14, 1993,

   5. DOT Order 3550.2A, Management of Overtime, dated July 29, 1987,

   6. Departmental Personnel Manual (DPM) Chapter 550, Pay Administration (General),

   7. DPM Letter 550-1, Agency Responsibility of Work Scheduling and Premium Pay Entitlement,

   8. DPM Letter 551-1, Changes in Overtime Pay under the Fair Labor Standards Act, and

   9. DPM Bulletin 550-16, Revision of 5 CFR Parts 550-610.

3. DEFINITIONS. For purposes of this section the following definitions apply:

   1. Administrative Workweek - a period of seven consecutive days designated in advance by the head of an agency. Within this period, agencies must establish a basic 40-hour workweek.

   2. Basic Workweek - the established 40-hour workweek for full-time employees. Although employees are generally paid the straight-time pay rate, in cases where the basic 40-hour week includes Sunday, or where employees work four 10-hour days, they are entitled to appropriate premium pay. In the specific case where employees have a compressed work schedule, the extra hours worked on a given day are credited for the basic 40-hour work week and do not result in entitlement to premium pay.

   3. Call-Back Overtime Work - irregular or occasional overtime work performed by an employee on a day when work was not scheduled for him/her, or for which the employee is required to return to his/her place of employment. If an employee is called back to work, any unscheduled overtime work he/she performs will be considered overtime. The employee must be compensated for at least two hours of work for overtime pay purposes.

   4. Compensatory Time - a form of payment for irregular or occasional overtime performed by an employee. This grants an employee time off from his/her scheduled tour of duty instead of payment for an equal amount of time spent in irregular or occasional overtime work. (This option is not available to prevailing rate employees who must be paid for any overtime which is earned, except for compensatory time off accumulated for religious observances.)

   5. Exempt Employee - an employee not covered by the provisions of the Fair Labor Standards Act (FLSA), i.e., an executive, administrative or professional employee. The FLSA designation is indicated on the employee's position description. Employees in the "exempt" category have entitlement to overtime compensation under provisions of Title 5, U.S.C.

   6. Fair Labor Standards Act - a law applying to certain employees of both private enterprise and the Federal Government which governs compensation for overtime work. The FLSA establishes a minimum standard to which nonexempt employees are entitled. Under FLSA, management cannot accept the benefits of a nonexempt employee's work without compensating the employee for that work.

   7. First 40-Tour of Duty - the basic workweek without the requirement for specific days and hours within the administrative workweek. When it is impracticable to prescribe a regular schedule of definite hours of duty for each workday of a regularly scheduled administrative workweek, the head of an agency may establish the first 40 hours of duty performed within a period of not more than 6 days of the administrative workweek as the basic workweek. All work performed by an employee within the first 40 hours is considered regularly scheduled work for premium pay and hours of duty purposes. Any additional hours of officially ordered or approved work within the administrative workweek are overtime work.

   8. Holiday Work - non-overtime work performed by an employee during a regularly scheduled daily tour of duty on a designated Federal holiday.

   9. Hours Worked - includes all the time an employee is required to be on duty or on the agency's premises or at a prescribed workplace in order to perform work for the agency.

   10. Irregular or Occasional Overtime Work - overtime work that is not part of an employee's regularly scheduled administrative workweek.

   11. Night Work - work performed by an employee between the hours of 6:00 p.m. and 6:00 a.m. which must be scheduled as part of the employee's regularly scheduled administrative workweek to be compensable at night premium rates. An employee who performs night work in accordance with the above is entitled to pay for that work at his/her rate of basic pay in addition to a night pay differential amounting to 10 percent of his/her rate of basic pay.

   12. Nonexempt Employee - an employee covered by the FLSA pay provisions. A nonexempt employee becomes entitled to overtime compensation (for hours worked in excess of 8 hours a day) for all work performed, including work that is irregular or occasional.

   13. Postshift Activity - a concluding activity that an employee performs after the completion of his or her principal activities.

   14. Premium Pay - additional pay for overtime, night, holiday, or Sunday work and for standby duty or administratively uncontrollable work.

   15. Preshift Activity - a preparatory activity that an employee performs prior to the commencement of his or her principal activities.

   16. Principal Activities - activities that an employee performs during his or her regularly scheduled administrative workweek (including regular overtimework) and activities performed by an employee during periods of irregular or occasional overtime work.

   17. Rate of Basic Pay - the rate of basic pay fixed by law or administrative action for the position held by an employee before any deductions and exclusive of additional pay of any kind.

   18. Regular Overtime Work - overtime work that is scheduled prior to the start of an employee's regularly scheduled administrative workweek.

   19. Regular Rate of Pay - under FLSA, the computed rate of pay to which the FLSA overtime rate is added.

   20. Regularly Scheduled Administrative Workweek - It is the officially prescribed days and hours within an administrative workweek during which the employee is regularly scheduled to work.

   21. Regularly Scheduled Work - work that is scheduled in advance of the administrative workweek in accordance with 5 U.S.C. 6101.

   22. Regular Working Hours - the days and hours of an employee's regularly scheduled administrative workweek.

   23. Sunday Work - non-overtime work performed by an employee during a regularly scheduled daily tour of duty when any part of that daily tour of duty is on a Sunday.

   24. Tour of Duty - the hours of a day (a daily tour of duty) and the days of an administrative workweek (a weekly tour of duty) that constitute an employee's regularly scheduled administrative workweek.

   25. Workday - the period between the commencement of the principal activities that an employee is engaged to perform on a given day, and the cessation of the principal activities for that day.

4. DELEGATIONS OF AUTHORITY. Unit Managers are delegated, and may redelegate, the authority to authorize overtimework in accordance with the FHWA Delegations and Organization Manual, Part I, Chapter 4, Section 1, Personnel Administration.

5. POLICY - OVERTIME PROVISIONS.

   1. Overtime Pay (General)

      (1) Overtime pay generally is paid to full-time, part-time and intermittent employees for work in excess of 8 hours in a day or 40 hours in a week which are officially ordered or approved. (However, certain employees who work on an approved alternative work schedule, or for whom the first 40 hours of duty in an administrative workweek is the basic workweek, may not be eligible for overtime if they work in excess of eight hours in a day.) Overtime work may be regularly scheduled overtime which is scheduled prior to the start of the regularly scheduled workweek, or irregularly scheduled overtime which is approved when needed. All other overtime is considered occasionally scheduled.

      (2) Overtime should be kept to a minimum using prudent management practices and restricted to cases where paid overtime is the only feasible way of accomplishing the objective. Authorizing officials should develop a program for the approval and monitoring of overtime. Special attention should be given to employees who are working overtime hours at a rate that will cause them to exceed 300 hours of overtime in a given year. Consideration should also be given to the use of details from others parts of the organization and/or the use of compensatory time arrangements.

      (3) Overtime should be requested and approved in advance. Unless it is scheduled prior to the start of the regularly scheduled workweek, overtime pay should not be paid unless the work is directed or consented to, approved and documented by an authorizing official. In case of operational emergencies precluding priorwritten authorization, overtime may be orally authorized provided it is subsequently confirmed in writing before submission of the time and attendance report authorizing the payment.

      (4) Work schedules must correspond to the actual work requirements. Assignments to tours of duty, including overtime, should be outlined in specific days and hours, and made in advance of the administrative workweek. When is it known prior to the onset of the workweek that a change in a work schedule is necessary, the employee must be informed as soon as possible and the tour of duty change must be adequately documented on the employee's time and attendance card.

      (5) Absence on annual or sick leave, absence on legal holidays, non-workdays established by executive or administrative order, or absence on compensatory time during the basic workweek does not reduce the amount of overtime pay to which an employee may be entitled during an administrative workweek.

      (6) The performance of irregular or occasional overtime work at night that was not scheduled in advance of the administrative workweek does not entitle the employee to night pay in addition to overtime pay for the same hours.

   2. Crediting Overtime. All regularly scheduled overtime must be compensated for by paid overtime.

      (1) Crediting Fractional Hours of Work

      (a) An employee shall be compensated for every minute of overtime work.

      (b) Preshift (preparatory) or postshift (concluding) activities not closely related to the performance of the principal activities are not computed in "hours of work", unless it is determined that a preshift or postshift activity isindispensable to the performance of the principal activities. In this case, the time spent in the qualifying preshift or postshift activity must exceed 10 minutes per daily tour of duty to receive credit for the total time spent in the activity as hours of work.

      (2) Overtime Rates of Pay. The overtime rate of pay for employees is determined as follows:

      (a) Under Title 5, U.S.C., all employees (regardless of pay plan) whose basic rate is greater than the minimum rate for grade GS-10, the overtime hourly rate is one and one half times the hourly rate of basic pay at the minimum rate for grade GS-10.

      (b) Under FLSA, overtime pay for nonexempt employees whose basic pay does not exceed the minimum rate for grade GS-10, the overtime rate is one and one-half times his/her basic rate.

      (c) In instances where the FLSA and other non-Title 5 statutes are not consistent in regard to overtime provisions, calculations under both laws will be made and employees will receive overtime pay under whichever authority provides the greater benefit within a given workweek.

      (d) Under the FLSA, employees are entitled to overtime on the basis of actual hours worked, including work within the workweek which may not be ordered or approved but is "suffered or permitted" to be performed; a workday begins with the commencement of the employee's principal activities and ends with the conclusion of the employee's principal activities for that day.

      (e) Supervisors are responsible for assuring that nonexempt employees do not perform workduring nonwork periods unless overtime payment is intended.

      (f) Under the provisions of the FLSA, overtime is payable for all hours of work performed in excess of 8 hours daily (or in excess of the specified hours of the day for employees on compressed work schedules). Overtime work "suffered or permitted" will be payable in excess of 40 hours in a workweek. Employees engaged in professional or technical engineering activities must follow a 40 hours of duty standard as a basis for overtime.

      (g) The nature of the overtime (e.g., "regularly scheduled" or irregular or occasional) must be documented. When computing entitlement for overtime, paid leave and other non-work hours in pay status are treated as hours worked in making the calculation, but hours covered by other types of premium pay, except night pay, are not.

      (h) The FLSA considers meal periods as hours worked if the meal periods are frequently interrupted by calls to duty, the employee would not be considered relieved of all duties and meal periods must be considered as "hours worked." However, if an employee's meal periods are uninterrupted, except for rare and infrequent calls, the meal periods can be excluded from "hours worked."

   3. Overtime Pay during Travel Status. Both under Title 5 and FLSA, time spent traveling away from the official duty station during regular working hours is considered "hours of work."

      (1) The FLSA requires the payment of compensation to covered employees under certain conditions for authorized travel time spent traveling on non-workdays or outside official duty hours. Such entitlement exists whenever the agency directs or permits (that is, gives the employee the choice of when to travel or knows of the employee's travel arrangements on non-workdays and does not alter them) an employee to travel on other than regularly scheduled workdays and duty hours.

      (2) Each request for overtime while in a travel status should be considered on a case by case basis for payment of overtime. The 5 CFR,Part 551.422 or subsequently issued interpretations and guidance should be consulted prior to final determination on overtime eligibility.

      (3) Compensable hours of work under FLSA. An employee covered by FLSA in the circumstance described below would be entitled to have these hours counted as hours of work and receive overtime pay for any hours that exceed 40 in a single workweek:

      (a) any time and for any reason an employee drives a government vehicle or his or her personally owned vehicle during a regularly scheduled workday or on a non-workday to a temporary duty location outside the official duty station limits (i.e., if the employee were directed or permitted to drive from home to motel at a temporary duty location on Sunday to begin work on Monday), the entire time spent driving would be countable as hours of work;

      (b) any time an employee is a passenger in a vehicle driven by another employee or travels on a commercial carrier, then the time spent riding and waiting for rides which correspond to the employee's regular work hours would be counted as hours of work (i.e., if the trip were on a Sunday from noon to 8 p.m. and the employee's regular hours were 8:30 a.m. to 5 p.m. on weekdays, the employee would have 5 hours, noon to 5 p.m., counted as hours of work);

      (c) any time an employee is directed to fly to a temporary duty site on Sunday, but chooses to drive, he or she would be entitled to count as work hours only the lesser of the actual time traveled, either the flying time or the driving time;

      (d) any time an employee performs work while driving, even if commuting (i.e., by being required to pick up passengers or make business stops), and;

      (e) whenever an employee attends an event which could not be scheduled or controlled administratively, travel time to the event and the return from such event to his or her official duty station would be counted as hours of work.

   4. Travel - Compensable hours of work under Title-5. Under Title 5, U.S.C. the time spent in travel status away from the official duty station is not considered hours of employment. Title 5 U.S.C. 6101 requires agencies to schedule travel during the regularly scheduled workweeks wherever possible, but Congress has prohibited the payment of overtime for travel periods except where one of the following exceptions is present:

      (a) the time spent is within the days and hours of the regularly scheduled administrative workweek of the employee, including regularly scheduled overtime hours; or

      (b) the travel involves the performance of work while traveling; is incidental to travel that involves the performance of work while traveling: is carried out under arduous conditions; or results from an event which could not be scheduled or controlled administratively.

6. POLICY - COMPENSATORY TIME PROVISIONS

   1. Under Title 5, U.S.C. All GS/GM employees may be granted compensatory time off.

      (1) Employees whose rate of basic pay exceeds the maximum rate for GS-10 may be required to take compensatory time off in lieu of overtime for irregular or occasional overtime work.

      (2) There is no authority to grant compensatory time off for regularly scheduled overtime; employees must be paid for such overtime.

   2. Compensatory Time under FLSA. FLSA does not amend or rescind a nonexempt employee's entitlement to compensatory time nor does it grant any additional right to compensatory time. Under FLSA, the employee must be paid overtime unless the employee requests compensatory time prior to the end of the scheduled weekly tour of duty.

      (1) Nonexempt employees, with rates of pay up to and including the maximum rate for GS-10, may request compensatory time in lieu of overtime pay only for irregular or occasional overtime work.

      (2) Compensatory time may be granted, only if it is selected by the employee in advance by signing a statement to be submitted with the time and attendance card.

   3. Maximum accumulation of compensatory time is limited to 160 hours. Compensatory time should be used as soon as possible after it is earned to avoid large accumulations and the need to convert to paid overtime. Accumulations beyond 160 hours will be converted automatically and compensated as paid overtime.

   4. Compensatory Time for Religious Observance

      (1) An employee may elect to accrue compensatory time for the purpose of taking time off without charge to leave when personal religious beliefs require that the employee abstain from work during certain periods of the workday or workweek.

      (2) Any employee who elects to accrue compensatory time for this purpose shall be granted (in lieu of overtime pay) an equal amount of compensatory time off (hour for hour) from his or her scheduled tour of duty. (There are recordkeeping requirements for such compensatory time for religious observances as specified in Title 5 CFR 550.1001.)

   5. Compensatory time will be used before annual leave except when annual leave would thereby be forfeited.

   6. All unused accumulated compensatory time will be converted to paid overtime when an employee is separated for one of the following reasons: death, involuntary retirement, disability separation and entry into military service.

7. POLICY - OTHER PREMIUM PAY PROVISIONS

   3. Night Work

      (1) The law authorizes a night differential of 10 percent of the employee's basic pay in addition to his/her basic pay, to be paid for any regularly scheduled work between 6 p.m. and 6 a.m.

      (2) Any night work, including overtime during night hours, that has been scheduled in advance of the administrative workweek (regularly scheduled work) is compensable at night rates.

      (3) The only exception to the requirement that night work be regularly scheduled is when night pay is authorized because the employee, as a result of the temporary change in the daily tour of duty, actually performs night work as part of his/her regularly scheduled administrative workweek. For example, an employee whose daily tour of duty is 8:30 a.m. to 5 p.m. Monday through Friday reports to work on Monday and is informed that his/her work schedule for Tuesday through Friday will be from 3:30 p.m. until midnight. The employee only works 40 hours during the week and is not entitled to overtime pay, but is entitled to night differential for 24 hours.

      (4) Under Title 5, U.S.C. night pay differential is in addition to overtime, Sunday, or holiday pay and is not included in the rate of basic pay used to compute the overtime, Sunday, or holiday pay.

      (5) Payment of night differential continues for regularly scheduled night hours when an employee is in a paid leave status providing the total amount of leave in a pay period is less than 8 hours; or is absent due to a holiday or other non-workday or is in an official travel status.

   4. Sunday Work

      (1) If an employee performs work on Sunday as part of his or her regularly scheduled workweek, he or she is entitled to Sunday pay for the Sunday hours worked; if hours are in excess of a basic 40-hour workweek, he or she is entitled to overtime pay for such work.

      (2) Sunday pay entitlement includes basic pay plus premium pay at a rate equal to 25 percent of the rate of basic pay for each hour of regularly scheduled Sunday work.

   5. Holiday Work

      (1) An employee who performs work on a Federal holiday as part of his/her regularly scheduled workweek is entitled to premium pay at a rate equal to the regular rate of basic pay in addition to regular pay for the holiday. In no case will an employee required to perform any work be entitled to less than 2 hours of holiday pay.

      (2) An employee who is assigned overtime work on a Federal holiday is paid in the same manner as for overtime work performed on other days.

      (3) Under Title 5, U.S.C. premium pay for holiday work is in addition to overtime pay or night pay differential or premium pay for Sunday work, and is not included in the rate of basic pay used to compute the overtime pay, night pay differential or premium pay for Sunday work.

8. REPORTING PROCEDURES

   1. Documentation. It is important for supervisors to determine and document, especially for nonexempt employees, whether overtime work is regularly or irregularly scheduled. This information will be recorded on time and attendance reports, (Form DOT F 2740.2).

   2. Approval. Overtime should be authorized in advance on form FHWA-21 (Attachment). Authorization for Paid Overtime and/or Holiday Work, and for Compensatory Overtime. Authorized officials may elect to project overtime needs, by grade levels and hours, and prepare this form on a pay period basis. The original signed and dated Form FHWA-21 should be retained by each office to verify the overtime paid as reported on the SYS Control 076, overtime reports which are distributed by the Finance Division (HFS-24).

   3. Monitoring. The SYS Control 076, Overtime Reports, will be used to provide supervisors with information on cumulative overtime hours for each employee.