Applicability
This Section applies to EXEMPT and NONEXEMPT GS, FP, and FWS employees as indicated. FP and FO employees overseas are covered by Section 23. Time off for religious observance is available to all employees.
Regularly scheduled overtime work
Regularly scheduled overtime work is overtime which is scheduled in advance of the week in which it is worked. Regularly scheduled overtime work is always paid at the employee=s overtime rate except that employees who work flexible (not compressed) schedules may choose compensatory time in lieu of payment if management has established a compensatory time policy and extends the choice to them. Except as noted under this heading, compensatory time may not be granted except as compensation for irregular or occasional overtime work (5 CFR 550.114).
Compensatory time for irregular or occasional overtime work - discretionary with operating units
Irregular or occasional overtime is overtime which is worked in the same week in which it is authorized and is payable at the employee's overtime rate. Heads of operating units have the discretion to establish a policy whereby an EXEMPT employee with a rate of basic pay in excess of the maximum for GS-10 will be compensated for irregular or occasional overtime work by an equal amount of compensatory time off.
When management does elect to establish the policy outlined under this heading, any NONEXEMPT employee and any EXEMPT employee earning less than the maximum for GS-10 may elect compensatory time if presented a choice but may not be required to take it in lieu of overtime pay.
Timeframe for use of compensatory time - discretionary with operating units
Heads of operating units also have the discretion to establish a time period in which an employee must use compensatory time or forfeit the time and payment for it unless the failure is due to an exigency of the service beyond the employee's control. However, any FLSA NONEXEMPT employee who cannot use compensatory time must be paid at the FLSA overtime rate for any unused hours (5 CFR 551.531).
Compensatory time an operating unit liability
Whether or not management elects to establish a timeframe for use of compensatory time, managers should be well aware of the amount of compensatory time granted to employees as each accrual creates an operating unit liability. A manager should not continuously grant compensatory time to an employee that, given the employee=s anticipated work requirements, he or she would not be able to use. Similarly, a manager should arrange the work requirements of an employee with accrued compensatory time so the employee has the opportunity to use his or her compensatory time. In as much as accrued compensatory time is an operating unit liability, management is not precluded from establishing an upper limit or cap on the number of accruals permitted.
Crediting regularly scheduled overtime
Employees who work regularly scheduled overtime are entitled to be paid for every minute of work. Employees who work only a few minutes beyond a quarter-hour increment of regularly scheduled overtime will be paid for an additional quarter-hour.
Crediting irregular or occasional overtime
Employees who work irregular or occasional overtime will have their worktime rounded to the nearest full quarter-hour; eight or more minutes will be rounded up to the next quarter-hour, and less than eight minutes will be considered part of the previous quarter-hour.
Using and recording overtime and compensatory time off
Overtime work, including compensatory time off granted in lieu of irregular or occasional overtime, may not be scheduled or recorded in less than quarter-hour increments and will be recorded on the Time and Attendance (T&A) Report in not less than quarter-hour increments. It may not be recorded until actually performed. Overtime work performed after the cutoff for submitting T&A Reports will be recorded on a supplemental or corrected T&A Report. Compensatory time may not be used to liquidate or reduce a balance of advanced annual or sick leave (45 Comp. Gen. 243).
Disposition of compensatory time when employees separate
When employees separate from the agency, they are entitled to overtime pay for each quarter-hour increment of their unused compensatory time. Losing operating units are responsible for liquidating balances of compensatory time by paying NONEXEMPT employees the FLSA regular rate, and EXEMPT employees the overtime rate in effect when each hour of the time was earned.
Disposition of compensatory time when employees move or transfer in from another agency
Heads of operating units have the discretion to accept accrued compensatory time of employees who move between operating units of the Department or who transfer into the Department. In accepting transferred accrued compensatory time, gaining agencies and operating units should be aware that they are agreeing to accept the financial liability incurred for which they have derived no benefit, did not authorize or approve, and may not have budgeted. Agencies may limit this liability by establishing a ceiling on the number of compensatory time hours that will be accepted for transfer.
Compensatory time and the biweekly maximum earnings limitation
An employee who is prohibited by reason of the maximum limitation on premium pay from receiving overtime compensation (see Section 5) may not elect to receive compensatory time off in lieu of prohibited overtime pay. (26 Comp. Gen. 750; 37 id. 362.)
Compensatory time and night differential
Compensatory time may not be granted with night differential unless the employee works a flexible alternative work schedule.
Compensatory overtime work for religious observance
Eligibility. (5 U.S.C. 5550). Any employee including Senior Foreign Service Officers and members of the Senior Executive Service, may elect to work additional hours 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. Any employee who elects to work additional hours for this purpose may be granted (in lieu of overtime pay) an equal amount of time off (hour for hour or quarter hour increment thereof) from his or her scheduled tour of duty.
NOTE: Most religions have a positive requirement, i.e., that an individual attend a service on a particular day as opposed to abstaining from work. Many hold services at night or at noon so that the requirement can be met without inveighing on the employee's work requirement. Annual leave, compensatory time, credit hours under a flexible work schedule may be used for religious observance. If none of these is applicable to the employee's situation, a valid request under this paragraph should only be disapproved if modifications in work schedules brought about by such requests would clearly interfere with mission accomplishment.
No payment for religious compensatory time. An employee who requests to work additional hours for religious observance may not later receive premium pay for this work. This is a matter of regulation; no exception can be made.
Exception to the biweekly maximum limitation. Employees who have reached the maximum limitation on premium pay may earn and use time for religious observances despite the fact that they are not otherwise entitled to premium pay or compensatory time.
Record separately. Timekeepers must record compensatory time earned and used for religious observances separately from other compensatory time to ensure that employees are not paid for such compensatory time if they separate.
Use before earned. An employee may work compensatory overtime for religious observance before or after the grant of compensatory time off. Heads of operating units may establish policy with respect to the timeframes in which compensatory time for religious observance is to be worked and used.