State Agencies Bulletin No. 860

Subject
Processing of the Over 40 Compensatory Time II Lump Sum Overtime Payments Upon Separation from State Service for Employees Represented by CSEA, PEF and RRSU
Date Issued
November 14, 2008

Purpose

To provide instructions for the processing of payments upon separation from State service for accruals earned under the new Over 40 Compensatory Time II program.

Affected Employees

Employees in the following bargaining units who have opted to participate in the Over 40 Compensatory Time II program:

Administrative Services BU02
Operational Services BU03
Institutional Services BU04
Division of Military & Naval Affairs BU47
Public Employees Federation BU05
Rent Regulation Services Unit BU67

Background

Per side letters to the 2007-11 collective bargaining agreements between the State and CSEA, PEF and RRSU, an Over 40 Compensatory Time II pilot program has been established.  This program allows eligible employees to earn compensatory time in lieu of a cash payment for overtime hours worked in excess of 40 in a week.

Employees who leave State service are entitled to receive a lump sum payment for the Over 40 Compensatory time earned under this program.

Effective Date(s)

Immediately

Program Description

The 2007-2011 CSEA, PEF and RRSU contracts each include a side letter stating that employees in salary grades 22 or below can opt to earn 1.5 hours, to a maximum of 240 hours, of compensatory time in lieu of overtime pay for each hour of overtime worked over 40 hours.

Please refer to GOER Memorandum 2008-16 dated May 29, 2008 which was issued to agency Directors of Human Resources for additional information.

Overtime hours banked under this program are accrued at the rate of 1.5 hours for each hour over 40 worked in a workweek.

Employees who leave State service must be paid for the accruals. The number of hours to be paid must be entered on the Time Entry page.

Payment will be made at the employee’s straight time rate.

OSC Actions

OSC has modified existing CSEA Time Entry earnings codes to include PEF and RRSU effective 11/6/08 to process lump sum payments for eligible employees who separate from State service:

  • O40 (Over 40 hrs OT LSP) for annual employees.
  • H40 (Over 40 hrs OT LSP) for hourly employees.

Agency Actions

The procedure for reporting compensatory time on the Time Entry page follows:

Earn Code: O40 or H40
Earning Begin Date: Enter the date of the day before the Termination or Retirement
Earnings End Date: Enter the same date as the Earnings Begin Date
Units: Enter the number of hours to be paid

Questions

Questions about this bulletin may be e-mailed to the Payroll Audit mailbox.