Notes for Recording and Calculating Non–Exempt Hours and Pay
Staff on the semi-monthly and weekly payrolls occupy positions that are not exempt from FLSA regulations
that require employers to compensate employees at time and one-half their regular rate of pay for hours
worked in excess of 40 hours per week. Brown’s policy is more generous than the law—and requires OT
compensation for non-exempt employees after 37.5 hours, except for positions whose regular schedule is 40
hours per week. See Policy for Overtime and Compensatory Time for Employees in Non-Exempt Positions
(Policy 40.031).
Individual Time Tracking Worksheet for Non-Exempt Staff
FLSA requires employers to maintain a record of hours worked for non-exempt employees8-.
Staff on the semi-monthly and weekly payroll are required to record hours worked on the Individual
Time Tracking Worksheet for Non-Exempt Staff or an approved alternative method for reporting hours
worked. A record of all hours worked must be retained for 7 years because Brown is a Federal
contractor.
The Individual Time Tracking Worksheet is reviewed for OT hours and maintained in the department.
OT hours are recorded on the Timesheets that are sent to Payroll.
Staff are required to obtain supervisory approval in advance when they anticipate the need to work
additional hours.
Non-exempt staff may not volunteer to work overtime without compensation.
Review of overtime calculation
Work Week: Sunday through Saturday.
Hours “worked”: When totaling hours, include vacation, sick, paid holidays, inclement weather days,
and work hours.
Summer hours: OT after 37.5hours: Straight time for hours between 35 and 37.5.
Overtime rate of pay includes: regular pay; second pay line; shift differential.
Record OT hours on the time sheet using the “030” earn code. OT earnings are not eligible for
retirement contribution calculations.
Compensatory Time-Off vs. Pay
We have to look at non-exempt hours on a weekly basis.
FLSA does not allow compensatory time to be banked.
Brown’s policy permits non-exempt employees to take hour for hour compensatory time off during the
same work week and 1-1/2 hours off for each hour worked in excess of 37.5 if taken the following
week.
Compensatory time off cannot be carried over to the next pay period—except for weeks containing the
end of one pay period and the beginning of another—the 15th/16th and the 31st/1st—during those
weeks you can carry overtime hours from one pay period to the next, because the time worked
occurred in the same week.
If you cannot grant compensatory time off within these timeframes you must pay the staff member at
their overtime rate for hours worked in excess of 37.5.
Pay adjustments should record the hours and rate of pay and include an explanation as to why the pay
adjustment is being processed.
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Sunday and Holiday Pay for Non Exempt Staff
Sunday hours are paid at double time unless Sunday is part of the staff member’s regular schedule, and
in those cases it is paid at straight time.
Staff who work on a Brown Holiday are paid for the day and in addition are paid at time and one-half
for hours worked.
Minimum Daily Hours
Three hours is the minimum number of hours that staff can be scheduled to work or called in to work.
If staff are called in for a special need that doesn’t require the full 3 hours, they are still paid for 3
hours.
Lunch Hour and Breaks
Brown’s policy provides a one-hour unpaid lunch break.
Rhode Island law requires that employees be given a 20 minute unpaid break when time worked
exceeds 6 hours.
Other “breaks” are taken with the approval of the supervisor, and may be forfeited if the supervisor
determines that the work load requires it.
Working Additional Hours in Another Department/Another Job.
Staff in non-exempt jobs must be paid at least time and one-half for hours worked in another
department if those hours result in working in excess of 37.5 hours.
All staff who accept an assignment in addition to their primary job need to clear the assignment with
their supervisor to ensure that the additional assignment does not impinge on his/her primary duties.
Pay Spreads
Staff may only elect the option to spread their pay effective July 1.
The pay spread option automatically continues the next fiscal year unless cancelled.
All pay adjustments are calculated using the actual hourly or daily rate as opposed to the spread rate of
pay.
Contact HR Information Services (Carina Hermann) to calculate final pay for staff with pay spreads
whose employment terminates before the end of the fiscal year (6/30).
Calculating Holiday Pay for Non-Exempt Staff
Here are 3 different schedules for a staff member who works 80% time. Each scenario illustrates how
to record hours so that part-time staff are paid correctly for holidays. The same concept applies to
vacation time. 37.5 weekly hours X 80% = 30 hours; 7.5 daily hours X 80% = 6 hours
Schedule 1.
Monday Tuesday Wednesday Thursday Friday Total
6 6 6 6 6 30
Holiday
benefit = 6
hours
Holiday falls on Monday: Monday is part of the staff member’s regular schedule.
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Action Required: None because the prorated benefit and the hours worked per day are the same.
Schedule 2.
Monday Tuesday Wednesday Thursday Friday Total
7.5 7.5 7.5 7.5 30
Holiday
benefit = 6
hours
Holiday falls on Monday: If you don’t do anything, the staff member gets paid for 7.5 hours, but his/her
benefit is for only 6 hours.
Action required: one of the following
Change the hours for the day of the holiday on the time sheet to 6 hours.
Ask the staff member to work an additional 1.5 hours to make up the difference.
Submit a pay adjust to reduce pay by 1.5 hours.
For Exempt Staff: no action is required as they are not paid on an hourly basis.
Schedule 3.
Monday Tuesday Wednesday Thursday Friday Total
7.5 7.5 7.5 7.5 30
Holiday
benefit = 6
hours
Holiday falls on Monday, which is not a regular work day for their schedule. If you do nothing, the staff
member doesn’t get paid for the holiday.
Action Required. One of the following
Give the staff member 6 hours off at a later time.
Write the 6 hours for the holiday on the time sheet or
Submit a pay adjust for the 6 hours.
For Exempt Staff: Time sheets are not submitted, so adjustments must be processed using a
Payroll Adjustment Form.
Note for Limited Duration Employees: Vacation, sick, holiday, inclement weather, summer hours, winter
break, double time on Sunday, overtime after 37.5 hours are all benefits for Brown employees on the regular
payroll. Limited Duration Employees are not entitled to these benefits; however in accordance with FLSA
they must be compensated for overtime for hours worked over 40 hours per week and receive an unpaid break
of at least 30 minutes after working 6 hours.
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