Loading...
7.4. SR 10-03-2011Item # 7.4. MEMORANDUM t~ver TO: City Council FROM: Lauren Wipper, Human Resource Representative DATE: October 3, 201 SUBJECT: Compensatory Time/Overtime Policy Earlier this year, the City Council requested information regarding the City's overtime and compensatory time policies. This information is included for your discussion. The two written policies for non-union employees that address overtime and compensatory time are included with this memo. One is the Overtime and Compensatory Time for Non- ExemptEmployees policy from the City's Employee Personnel Manual and the other is city council meeting minutes from May 28, 2002 indicating that employees working on snow removal on a Saturday or Sunday be paid overtime. The other policy that has been long time practice but that I am unable to fmd in writing is paying overtime to wastewater employees when they work the weekend rotation hours. The overtime and compensatory time articles from the city's two union contracts are included as well. Overtime pay is set each year in the annual budget. The Overtime and Compensatory Time for Non-Exempt Employees policy defines overtime and then goes on to state that "overtime compensation wiU be paid for overtime hours" unless requested as comp time. When we began dealing with the constraints of a tight budget, overtime budgets were reduced and the interpretation of the overtime and comp time policy changed. As allowed by the Fair Labor Standards Act (ELBA), employees were required to bank compensatory time and then use those hours (not allowing a cash out) to ensure that they met the end of year policy requirements as stated in the second to last paragraph of the policy. (Patrol, investigations, and wastewater were allowed to continue cashing out comp hours.) The street and equipment services divisions have requested a change to their "year" a couple of times to ease the difficulty of meeting the end of year comp bank hours requirements while still performing necessary snow removal activities. The park division chose to stay with the December 31 year end date. The spreadsheets attached show the overtime and comp time details for all of 2010, and 2011 through September 10. When reviewing them, please remember that 2010 has three and a half months' worth of data more than 2011. Another item to note is that this data is for only non-exempt employees and does not include any data for exempt (salaried) employees. The spreadsheets show overtime and compensatory time for each division. Footnotes indicate items with additional detail at the bottom and hope to make the spreadsheets a bit more self-explanatory. As there are differences in the way overtime/comp time is handled from division to division, it is understandably a difficult spreadsheet to follow. The overtime budget shown is the annual budget approved by council. Overtime paid is just that and hours indicate the number of hours that were paid out as overtime. Comp time carry forward is the number of hours of comp time that were on the books fox that division at the beginning of the calendar year. Because under FLSA comp hours need to be accrued at time and one half, when an employee works an extra hour in a week, an hour and a half goes into that employee's comp bank. In some cases an employee may be earning double time and then two hours would go into the bank. Comp time taken is the number of hours employees used accrued comp time to take paid time off of work. Employees in patrol, investigations, and wastewater have been allowed to cash in comp time. Prior to adjusting our policy to manage tight budgets, all non-exempt employees were allowed to cash in comp time. Cashed in comp time is charged to overtime and because most divisions do not have an overtime budget, they are not allowed to cash in comp time. On the spreadsheet, comp hours that are cashed in are shown in that column and the cost for those hours are included in the overtime paid column. In the 2010 spreadsheet, we note the end of year balance for comp time and in the 2011 spreadsheet, we note the balance as of September 10. The end of year target hours in the 2011 spreadsheet indicates the maximum number of comp hours that each division should have by the end of the year. As mentioned earlier, streets and equipment services used a different year and needs to have their comp hours at or below 40 for each employee by October 31. The additional hours worked column is the sum of the overtime hours plus two-thirds of the comp earned hours. (Recall that comp is earned at time and one half.) This number reflects the additional hours (hours over 40 in a week) that employees worked during the year. The net column is additional hours worked minus comp hours taken off. This number indicates the number of extra hours of work that would have been necessary if employees hadn't taken any comp time off of work. Staff will be at Monday night's meeting to answer any questions you may have. Action Step An update of the City's Personnel Policy Manual is projected to be done in 2011 and 2012. Staff recommends exploring the options of having a comprehensive review of our Personnel Policies performed as part of that update. OVERTIME AND COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES All employees, in all departments, may be required to work overtime as requested by their supervisor. Refusal to work overtime when requested .may result in disciplinary action. Supervisors will make reasonable efforts to balance the personal needs of their employees when assigning overtime work. All overtime must be authorized in advance by the employee's supervisor. An employee who works overtime without prior approval may be subject to disciplinary action. The City complies with applicable state and federal laws governing accrual and use of overtime. Only employees to whom the overtime provisions of the State and/or Federal Fair Labor Standards Act apply are required to be .compensated for overtime work. The City Administrator and Human Resource Representative will determine whether each employee is "exempt" or "non-exempt" in accordance with federal law. Overtime eligible (non-exempt) employees will be compensated at the rate of one and -one-half times their base_hourly rate for hours worked over 40 in one workweek. However, non-exempt employees employed in fire protection activities or law enforcement activities may be paid overtime based on the 7(k) exemption as defined by the Fair Labor Standards Act (29 U.S.C. § 207(k)). Vacation, sick, compensatory, and bereavement leave hours taken during the workweek do not count toward "hours worked" for purposes of overtime. Holiday time off pursuant to the Holidays policy below generally will count toward "hours worked" for non-exempt employees. Emergency call out hours, as determined by the department head, and weekend rotation hours will be compensated as overtime hours. and will be paid at time and one half. Overtime compensation will be paid for overtime hours, unless the employee and department head mutually agree in advance of performance of the work that the overtime will be banked as compensatory time in lieu of receipt of overtime compensation. Employees may request and use compensatory time off in the same manner as other leave requests. Non-exempt employees who have requested the use of accrued compensatory time will be permitted to use the compensatory time within a reasonable. period after making the request, if the use of the compensatory time does not unduly disrupt the operations of the City. All compensatory time must be marked as such on official timesheets, both when it is earned and .when it is taken. Overtime hours not specified as compensatory time will be paid with overtime compensation. The Finance Department maintains compensatory time records. An employee whose activities include public safety, emergency response or seasonal work may accumulate up to 480 hours of unused compensatory time in a "bank." All other employees may accumulate up to 240 hours of unused compensatory time in a "bank." In any event, no employee may carry over more than forty (40) hours of compensatory time in a bank from one calendar year to the next. Street and Equipment Services employees will track compensatory time based on a November 1 to October 31 year. No more than 40 hours may be carried from October 31 to November 1. Any non-exempt employee who has accumulated more hours of compensatory time than he or she is permitted to bank will be paid overtime compensation for all overtime hours of work in excess of the amount permitted to be banked. Upon termination of employment, non-exempt employees will be paid for all accrued but unused compensatory time. Overtime pay for holidays is paid based on the provisions found in the HOLIDAYS section of this manual. City Council Minutes Page 4 May 28, 2002 4.4. Consider Snowplowing Policy Chafe City Administrator Pat Klaers stated that he met with street department employees to discuss concerns over wage and benefits and that the most significant issue that arose related to the "hours worked" personnel policy change made in December of 1999. The main issue is that vacation and sick hours no longer counted towards "hours worked" for the purposes of overtime. He stated that the street department employees want this policy changed back to the status of all hours worked, regardless if vacation time, holiday time, or sick time is taken, be counted as hours worked for the purpose of overtime. Ivlr. Klaers stated that the policy was changed to be more consistent with federal law. Other issues mentioned by the street department include the number of steps in the pay plan and starting pay. He stated that the department requested an appeal process if their requests are denied at the staff level. Councilmember Dietz stated that the street department has recently received increases in insurance contributions and pay grade changes. He said he would support the recommendation that Saturdays and Sundays be paid at overtime rates but that the-other changes requested by the employees should remain the same. Councilmember Tveite questioned if the street department would view this compromise of overtime pay on Saturdays and Sundays as a positive or negative in terms of support from Council. Street/Park Superintendent Phil Hals stated that it wouldn't be eveiytliing the street department employees are requesting but would be viewed as a positive step in the right direction. MAYOR KLINZING MOVED TO APPROVE THAT ALL EMPLOYEES WORKING ON SNOW REMOVAL DUTIES ON SATURDAYS AND SUNDAYS BE PAID OVERTIME RATES, COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. pa-r~l ARTICLE X11. OVERTIME 12.1 Employees will be compensated at one and one-half (1'/z) times the employee's regular base pay rate for hours worked in excess of the employee's regularly scheduled shift. Changes of shifts do not qualify an employee for overtime under this Article. 1.2.2 Overtime will be distributed as equally as practicable. 12.3 Overtime refused by employees wilt, for record purposes under Article 12.2, be considered as unpaid overtime worked. 12.4 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. 125 Crvertime will be calculated to the nearest fifteen (15) minutes. 12.6 Employees have the obligation to work overtime or call backs as requested by the Employer unless unusual circumstances prevent the employee from so working. The minimum call back will be two hours. ARTICLE XXV. COMPENSATORY TIME PROVISIONS Regular full time employees may be allowed to accumulate either overtime worked at the rate provided for in Article XII or compensatory time at the rate of one and one-half (1'/z) times the excess hours worked. Employees may use compensatory time off duty with pay, subject to prior approval of the Employer. Compensatory time in excess of forty (40j hours accumulated but not used as time off with pay shall be paid by the Employer between December 15C and December 315 of each calendar year. Not more than forty (40) hours of compensatory time shall be carved from one calendar year to the next. All .hours reimbursed by a -third party are not subject to the above compensatory time provisions. All hours paid to an employee that are invoiced to or reimbursed by a third party will be paid to the employee and shall not be banked as compensatory time. A third ..party is defined as .any person or organization contracting formally or informally with the City for police services that is invoiced for or pays the City for such services. .Services :provided to ISD 728 for athletic and other customary events are not considered third party. ISD 728 events that are special or one time events are considered third party. Hours charged to grants shall be dictated bq the terms of the grant 5~~~~,~ ACTIC,LE IX -OVERTIME 9.1. Employees will be compensated at one and one-half (1 '/z) time the employee's regular base pap rate for hours worked in excess of the employee's regularly scheduled shift. Changes of shifts do not qualify an employee for overtime under this A~.-ticle. 9.2. Overtime will be distributed as equally as practicable. 9.3. Overtime refused by employees will, for record pLUposes under ARTICLE 9.2., be considered as unpaid overtime worked. 9.4. For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hoots worked. 9S. Overtime will be calculated to the nearest fifteen (15) minutes. 9.6. Employees have the obligation to work overtime to call backs as requested by the Employer unless unusual circumstances prevent the employee from so working. The minniirnum call back will be two how:s. ARTICLE ~ -COMPENSATORY TIME Regular full-time employees may be allowed to accumulate either overtime worked at the rate provided for in Article IY or compensatory time at the rate of one and one-half (1 '/z) trines the excess hours worked Employees may use compensatory time off duty with pay, subject to prior approval of the Employer. Compensatory time in excess of forty (40) hours accumulated but not used as time off with pay shall be paid by the Employer between December 1 and Deceanber 31 of each calendar year.. No more than (40) hours of compensatory time shall be carried from one calendar year to the next. COMP TIME (1) ADDL 2010 OVERTIME CARRY CASHED END OF YR HRS Full Year BUDGET PAID HOURS FORWARD EARNED TAKEN IN (2) BALANCE WORKED (3) NET(4) Administrative Services $0.00 $0.00 2.65 92.54 55 40.19 61.69 . 6.69 Human Resources $0.00 $0.00 8.13 31.1 26.45 12.78 20.73 -5.72 Finance $0.00 $0.00 40 9.76 9.76 40 6.51 -3.25 Information Technology $0.00 $0.00 20 35 21 34 23.33 2.33 Community Development $0.00 $0.00 10.75 25.5 29 7.25 17.00 -12.00 Planning $0.00 $0.00 0 10 9.75 0.25 6.67 -3.08 Building Maint (5) $2,500.00 $1,247.27 36.50 99.99 192.56 130.5 162.05 164.87 34.37 Patrol $90,000.00 $101,946.02 1044.75 606.31 1992.04 321.63 1681.58 595.14 2372.78 2051.15 Investigations $40,000.00 $40,968.94 278.50 211.99 830.7 151.65 647.92 243.12 832.30 680.65 Police Support Services $6,500.00 $1,162.70 16.50 173.81 341.93 325.47 30.03 160.24 244.45 -81.02 Fire Inspections $0.00 $0.00 5 63 35 33 42.00 7.00 Building Safety $0.00 $0.00 61.88 53.26 35.48 79.66 35.51 0.03 Street Maintenance $2,000.00 $1,209.52 29.50 Snow Removal $3,000.00 $4,648.06 94.50 Street Division Total $5,000.00 $5,857.58 124.00 218.25 1232.75 462 989 945.83 483.83 Equipment Services $0.00 $0.00 103 410.5 155 358.5 .273.67 118:67 Parks Department $0.00 $7.13 0.50 182.51 580.78 578.25 185.04 387.69 -190.56 Recreation Programming $0.00 $19.13 1.50 50.4 443.13 449 44.53 296.92 -152.08 Sr Citizen Programs , $0.00 $0.00 8.25 55.5 42.35 21.4 37.00 -5.35 Ice Arena $0.00 $78.22 6.00 40 22.88 22.88 40 21.25 -1.63 Golf Course $0.00 $19.13 1.50 1.50 1.50 Wastewater Plant $10,000.00 $14,810.84 200.84 Laboratory $4,200.00 $3,228.25 86.50 Sewer Operations $500.00 $129.18 4.00 Lift Stations $4,900.00 $2,561.11 68.50 Wastewater Total (6) $19,600.00 .$20,729.38 359.84 141.51 687.87 344.5 308.38 176.5 818.42 473.92 Northbound Operations $0.00 $87.19 3.00 3.00 3.00 Westbound Operations $0.00 $36.29 1.50 1.50 1.50 Garbage Fund (7) $0.00 $785.52 20.00 20.00 20.00 Total comp hours earned: 7110.8 COMPTAKEN ADDL HRS(3) NET(4) Total hours: 3204.67 6634.62 3,429.95 Equivalent days: . 400.58 829.33 428.74 Equivalent weeks: 80.12 165.87 85.75 (1) Comp Hours are only earned by non-exempt employees. This does not reflect extra hours worked by exempt employees. (2) Comp hours Cashed In reduce employees comp bank balance and are charged to overtime so increase Paid under overtime. Employees in patrol, investigations, and wastewater can cash in comp. (3) Addl Hours Worked= OT Hours Paid + Comp Time Earned divided by 1.5. This does not take into consideration the comp time that employees are required to take off. That number is reflected in NET(4). (4) Net .hours reflect the number of extra hours worked by non-exempt employees. It is the Addl Hours less the Comp Taken. In essence, if employees didn't take the comp time off, they would have worked the Net number of additional hours. (5) Building Maintance overtime is charged to the fund that benefited from the OT -example, waxing floors at Northbound would be charged to Northbound. It is less expensive to pay staff OT than to have a cleaning service wax the floors. (6) Wastewater receives overtime as compensation for their required weekend rotation. They can choose to be paid OT or earn comp time for those hours. (7) Garbage Fund overtime was paid for Clean Up Day as approved by the City Administrator. OVERTIME COMP TIME (1) ADDL 2011 Throu h 9/10/11 BUDGET PAID :HOURS CARRY FORWARD EARNED TAKEN CASHED IN (2) CURRENT BALANCE EOYTARGET HOURS (3) HRS WORKED (4) NET(S) Administrative Services $0.00 $0.00 40.19 20.26 48.52 .11.93 80 13.51 -35.01 Human Resources $0.00 $0.00 12.78 12.6 11 14.38 40 8.40 -2.60 Finance $0.00 $0.00 40 9.38 9.13 40.25 40 6.25 -2.88 Information Technology $0.00 $0.00 34 5.5 24 15.5 40 3.67 -20.33 Community Development $0.00 $0.00 7.25 18.75 23 3 40 12.50 -10.50 Planning $0.00 $0.00 0.25 7 7.25 0 40 4.67 -2.58 Building Maint (6) $2,500.00 $901.34 25.00 162.05 141.79 160.25 143.59 200 119.53 -40.72 Patrol{7) $90,000.00 $40,864.04 641.75 595.14 1087.23 .118.75 343.54 1220.08 800 1023.03 904.28 Investigations (7) $45,000.00 $11,569.92 187.25 243.12 586.85 79.5 68 682.47 280 510.48 430.98 Police Support Services $3,500.00 $263.45 8.25 160.06 217.8 112.75 265.11 320 153.45 40.70 Fire Inspections $0.00 $0.00 33 33.75 34 32.75 40 22.50 -11.50 Building5afety $0.00 $0.00 79.66 15.75 14.9 80.51 160 10.50 -4.40 Street Maintenance $0.00 $0.00 Snow Removal (8) $15,000.00 $18,257.76 444.00 Street Division Total $15,000.00 $18,257.76 444.00 983 317.25 824.5 475.75 280 by 10/31 655.50 -169.00 Equipment Services $0.00 $41.39 1.00 358.5 115.75 333.5 140.75 120 by 10/31 78.17 -255.33 Parks Department $0.00 $19.00 0.50 185.04 313.02 .361.38 136.68 200 209.18 -152.20 Recreation Programming (9) $0.00 $4,484.26 240.00 44.53 279.75 204.5 119.78 120 426.50 222.00 Landfill Fund (10) $0.00 $645.92 17.00 17.00 17.00 Sr Citizen Programs $0.00 $0.00 21.4 3.75 25 0.15 80 2.50 -22.50 Ice Arena $0.00 $0.00 40 24.14 1 63.14 40 16.09 15.09 Golf Course $0.00 $0.00 Wastewater Plant $12,000.00 $7,410.37 106.50 Laboratory $4,000.00 $1,297.99 35.50 Sewer Operations $500.00 Lift Stations $2,500.00 $1,516.18 39.00 Wastewater Total (]1) $19,000.00 .$10,224.54 181.00 176.5 412.5 267 136.75 185.25 200 319.25 52.25 Northbound Operations. $0.00 $0.00 Westbound Operations $0.00 $0.00 Garbage Fund (10) $0.00 $976.57 27.00 27.00 : 27.00 ~ Total comp hours earned: 3622.82 COMP TAKEN ADDL HRS(4) Nt L(S) Total comp hours taken: .2659.93 3639.67 979.74 Equivalent days: 332.49 454.96 122.47 Equivalent weeks: 66.50 90.99 24.49 (1) Comp Hours are only earned bynon-exempt employees. This does not reflect extra hours worked by exempt employees. (2) Comp hours Cashed In reduce employees comp bank balance and are charged to overtime so increase Paid under overtime. Employees in patrol, investigations, and wastewater can cash in comp. (3) This number reflects the number of comp hours that the City's policy allows non-exempt employees to carry into the new year (gi) times the number of non- exempt employees in the division. The number of hours currently banked by each individual employee may vary significantly from employee to employee. Street Maintance and Equipment Services division have a different "end of year" date due to the snow season. (4) Addl Hours Worked = OT Hours Paid + Comp Time Earned divided by 15. This does not take into consideration the comp time that employees are required to take off. That. number is reflected in NET(. (5) Net hours reflect the number of extra hours worked by non-exempt employees. It is the Addl Hours less the Comp Taken. In essence, if employees didn't take the comp time off, they would have worked the Net number of additional hours. (6) Building Maintance overtime is charged to the fund that benefited from the OT -example, waxing floors at Northbound would be charged to Northbound. It is less expensive to pay staff OT than to have a cleaning service wax the floors. (7) Patrol and Investigations are typically paid out significant comp time at the end of the year. That amount is charged to overtime when it is paid out. (8) Snow Removal is over budget because of the timing of the snowfalls and the need for employees to work overtime on holidays, for which they receive pay but can comp if they choose. This applies to snow removal operations only. (9) Recreation Programming overtime is for overtime paid to seasonal employees. This. amount combined with part-time pay should not exceed the part-time pay budget. Fulltime employees earn comp time for any additional hours work. (10) Landfill Fund and Garbage Fund overtime is paid for Clean Up Day and Christmas Tree Recycling as approved by the City Administrator. (11) Wastewater receives overtime as compensation for their required weekend rotation. They can choose to be paid OT or eam comp time for those hours.