1. (1) An FLSA exempt employee may not work more than 80 hours in a pay period without management approval. Compensatory time accrues when the employee works more than 80 hours in a work period. Leave and holiday time taken within the work period are not hours worked when calculating compensatory time. Management shall compensate an FLSA exempt employee who works overtime by granting time off. For each hour of overtime worked, an FLSA exempt employee accrues an hour of compensatory time.

2. (2) Management shall establish in written policy a uniform overtime year either for the agency as a whole or by unit number and communicate it to employees. Overtime years shall be set at one of the following pay periods: Five, Ten, Fifteen, Twenty, or the last pay period of the calendar year. If management fails to establish a uniform overtime year, the DHRM Division Director and the Director of Finance, Department of Government Operations, will establish the date for the agency as the last pay period of the calendar year. Management may change the established overtime year for the following calendar year by notifying DHRM of the change by December 31 of the current year. Management may not change the pay period during the current overtime year unless justifiable reasons exist and the DHRM Division Director has granted a written exception.

   1. (a) The limit on compensatory time accrued by an FLSA exempt employee may not be less than 80 hours.
   2. (b) Any compensatory time earned by an FLSA exempt employee over the limit shall be paid out in the pay period it is earned.
   3. (c) Any compensatory time earned by an FLSA exempt employee is not an entitlement, a benefit, nor a vested right.

   4. (d) Any compensatory time earned by an FLSA exempt employee shall lapse upon occurrence of any one of the following events:

      1. (i) at the end of the employee's established overtime year;
      2. (ii) upon assignment to another agency;
      3. (iii) change in FLSA status to non-exempt;
      4. (iv) change from a benefited to a non-benefited position; or
      5. (v) when an employee terminates, retires, or otherwise does not return to work before the end of the overtime year.

KEY: breaks, telecommuting, overtime, dual employment

Date of Last Change: January 21, 2026

Notice of Continuation: March 9, 2022

Authorizing, and Implemented or Interpreted Law: 34A-2-114; 63A-17-106; 63A-17-602; 20A-3-103