Table of contents: alphabetical Table of contents: department


Human Resource Management - Overtime Payments; Compensatory Time Off


Subject Area: Compensation
Policy Title: Overtime Payments; Compensatory Time Off
Policy / Procedure No: HRM012
Responsible Office: HRM
Related Policy / Procedure: HRM007 -- Position Classification

PURPOSE: To define the term "overtime payments" and eligibility for such payments.

DEFINITIONS: Non-exempt employees are those individuals whose job duties are classified as not exempt from overtime payments under the Fair Labor Standards Act.

SCOPE: Employees whose jobs have been classified as non-exempt by Compensation staff member. At Northeastern, all employees in the following categories are considered non-exempt: Office Support, Technical, Service, Skilled Crafts and Trades, and certain Public Safety positions.


1. Non-exempt employees (excluding temporary employees) regularly scheduled to work 35 hours per week are paid at higher rates when their hours worked exceed 35 in any given work week.

2. All non-exempt employees (as defined in 1 above) should be paid at 1.16 times the regular hourly rate for hours worked in their department over 35 up to and including 40 in any given workweek. All non-exempt employees are paid at the rate of 1.5 times their hourly rate for all hours worked exceeding 40 in a work week.

3. Executive, administrative and professional employees (those paid semi-monthly) are exempt from the overtime requirements of the Fair Labor Standards Act and the University's overtime policy. These employees are expected to perform their duties for such periods as may be required. Equivalent time off or additional pay will not be granted for any services rendered in excess of the normal work schedule. (For unusual situations, please refer to the Extra Compensation Policy.)

4. Overtime payments are not eligible for retirement plan contributions.

5. Compensatory time off in lieu of overtime pay for non-exempt employees is permissible, provided that the time off is taken within the same work week on an equal time basis for hours worked over 35 up to and including 40. An employee who works more than 40 hours in a work week may be given compensatory time at one and one-half time within the same work week for hours worked in excess of 40. Employees are not permitted to take time off in one pay week to compensate for overtime hours worked in any other work week.

6. Northeastern's workweek begins Monday at 12:01 a.m. and ends the following Sunday at midnight.

7. In any week in which a legal holiday occurs on an employee's regularly scheduled work day or an employee is authorized to be off for illness charged to accumulated sick leave, such holiday or time off shall be considered as time worked in computing overtime payment.

8. The department head must give prior approval for all overtime work and must keep records of all variations from the regular scheduled workweek with respect to hours worked and wages paid (see Time Reporting).

9. The Office Support and Technical Time Exception Report, properly authorized by the department head, must be submitted to the HR/Payroll Service Center no later than Monday at 4:30 p.m. following the completed workweek for overtime hours of employees in the Office/Support and Technical group.

10. Overtime payments for employees in the Crafts and Trades and Service categories are processed directly on the weekly payroll warrant the individual department heads submit to the HR/Payroll Service Center.