INFORMATION #2 10-13-2003MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Pat K la ers, City Ad m~~~~
October 13, 2003 '~ ~7~
Comp Time
The city needs to change its compensatory time policy for exempt employees.
The current comp time policy states, in part, that exempt employees may take no more than four hours
of comp time off in one day and no more than ten hours of comp time off in one week. In my opinion,
this policy no longer treats all of our exempt employees fairly. (The city has 24 exempt employees
excluding the Police Sergeants.) In too many cases there has been times when an employee will have
~vorked a "huge" week and then that employee needs and deserves to take a day off, but can use no
more than four hours of comp time off in one day because of our policy. Another reason to make a
change in our comp dme policy is that the city must make sure that it is in compliance with the Fair
Labor Standards Act (FLSA).
The easiest, cleanest, and best way for the city to ensure compliance with FLSA, and in order for the
city to be fair to all employees is simply to eliminate the recording of comp time. This will not impact
how ~ve do business or work as city employees, it will only impact how we record hours. The city will
only record hours worked, vacation time taken, sick time taken, and holidays. We will no longer record
compensation time earned or taken. This is not an uncommon practice for municipalities. This issue
was discussed (again) at the September 23, 2003 department head staff meeting and the consensus
reached was that it is best for the city to eliminate comp time being recorded as earned or taken.
Use of comp dme is a management and supervisor issue. Use of compensation time relates to whether
or not an employee is required to be at work for a particular assignment or duty and, overall, whether
or not the employee's work is getting completed. In this regard, both the employee and employer need
to have a clear understanding of the expectations and responsibilities of the position. If problems exist
with an employee's work performance or hours worked, then this is a management or supervisory issue
and needs to be addressed.
A second comp time issue that needs Council review is related to the comp hours which employees
have built up and have "in the bank" at this time. Some employees have a large amount of comp time
built up while other exempt employees have a very modest amount. The city has not capped the
amount of comp time that can be carried over from one year to the next and has simply kept a running
log of the hours accumulated as compared to the hours used. Use of these comp hours by an employee
is not an entitlement and the city could simply eliminate these hours entirely. However, I think it's
appropriate to acknowledge the work and dedication of these employees. In this regard, I am
recommending to the City Council that when we stop the recording of comp time and eliminate the
comp time hours that are on the books, then the city gives the employee 20% of the hours accumulated
to be used as personal leave time. This personal leave time will not be paid in cash upon the employee
leaving the city. The employee xvill need to use these hours sometime over the next five years. In this
manner, employees that have three or four weeks vacation time available to them per year will not have
to try to also use all of their personal leave time in one year and can plan out the use of this time. Even
with this five-year approach, there may be a fexv employees that do not use all of their personal leave.
It is planned that this change in the recording of comp time be effective on November 2, 2003. This
will necessitate a sentence change and a sentence removal from the current personnel policy manual.
Attached for your information is page 5 of the city personnel policy manual that refers to time off for
exempt employees. Two sentences towards the end of this section need changing and/or removal.
Action on this item will be requested on October 27, 2003.
Any Council feedback on the above proposals prior to October 27 will be appreciated and if you have
any questions, please feel free to contact me.
CITY OF ELK RIVER
PERSONNEL POLICY MANUAL
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 tieu 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. 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.
TI/VIE OFF FOR EXEMPT EMPLOYEES
Exempt employees are exempt from the overtime requirements of the Fair Labor Standards Act
and are expected to work whatever hours are necessary in order to meet the performance
expectations outlined by their supervisors, the City Administrator and/or the City Council.
Exempt employees are often required and expected to work in excess of forty (40) hours per
week. Exempt employees must record all time worked on official timesheets. Exempt employees
may take no more than four (4) hours of compensatory time off in one day and no more than ten
(10) hours of compensatory time off in one week. Exempt employees shall not be paid for
compensatory time under any circumstance.
REPORT OF PERSONNEL CHANGES
The City attempts to maintain complete and accurate personnel information on its employees.
The City complies will laws regarding data privacy. It is important that your permanent personnel
records are kept accurate and up-to-date. You must immediately notify the payroll department
when there is a change in any of the following:
· Name (through marriage or otherwise)
· Address
Marital status
· Beneficiaries for life insurance and retirement
· Telephone number
· Person to contact in case of emergency
· Other changes which may affect benefits coverage
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