This bulletin is superseded by Payroll Bulletin No. 1949.3.

Purpose

The purpose of this bulletin is to provide information and processing instructions regarding the implementation of a pilot program establishing a temporary overtime rate for employees in certain titles represented by PEF or CSEA working at specific OCFS facilities.

Affected Employees

Employees in certain Institutional Services Unit (BU04) or Professional, Scientific, and Technical Services Unit (BU05) titles who work at specific OCFS facilities are affected.

Background

The Memorandum of Agreement (MOA) signed 09/30/2021 between the State of New York, the Office of Children and Family Services (OCFS), the Civil Service Employees Association (CSEA), and the Public Employees Federation (PEF) allow specific OCFS facilities to establish a temporary overtime rate of 2.5 times the employee’s regular rate of pay for employees in certain titles.

The new overtime rate shall apply to all overtime earned during shifts that begin after 12:00 am on 10/01/2021 and before 11:59 pm on 12/31/2021. For any shift that begins at or after 12:00 am on 01/01/2022, the overtime rate shall revert to the rate in place prior to implementation of the pilot program unless extended by mutual agreement of the parties.

The following OCFS facilities are participating in the pilot program. The overtime factor used by the New York State Payroll System (PayServ) for affected employees at these facilities is .00120:

Effective Dates

The new overtime rate is effective 10/01/2021. The agency should begin using the new Time Entry Overtime Earnings Codes beginning in Administration Pay Period 14L, checks dated 10/27/2021.

Eligibility Criteria

Employees who work at one of the specified OCFS facilities and have overtime earnings effective 10/01/2021 through 12/31/2021 in one of the following titles must be paid at a rate of 2.5 times their regular rate of pay using one of the new Time Entry Overtime Earnings Codes:

OSC Actions

OSC has created the following new Time Entry Earnings Codes to report overtime and overtime related payments for employees eligible to receive overtime at 2.5 times their regular rate of pay:

The agency should continue using either Earnings Code OTO – OT Override or Earnings Code CVO – Covid-19 OT Override for overtime payments that cannot be calculated by the NYS Payroll System. In addition, agencies should continue using Earnings Code PSH – Pre-Shift BU04 YDA HRY for hourly employees earning pre-shift briefing in BU04.

Agency Actions

Beginning in Administration Pay Period 14L

To report overtime earnings related to the pilot program effective beginning 10/01/2021 (Administration), the agency must submit the appropriate New 2.5x Earns Code (as listed in OSC Actions above) on the Time Entry page or the Time Entry Interface (NPAY502) using the following procedures:

The agency must use the overtime factor of .00120 in the calculation when submitting any payments using Earnings Code OTO – OT Override or Earnings Code CVO – Covid-19 OT Override and calculate payments submitted using Earnings Code PSH – Pre-Shift BU04 YDA HRY using 2.5 times the employee’s regular hourly rate. Agencies must include an explanation in General Comments or Time Entry Comments that this payment has been calculated at 2.5 times the employee’s regular rate of pay as part of this pilot program.

Note: The agency must split up overtime earned on or before 09/30/2021 from overtime earned on or after 10/01/2021 due to the difference in the OT rate approved for payment.

Previously Paid Overtime Using Earnings Code OTO or Earnings Code CVO

If an eligible employee previously received overtime during the above period using Earnings Code OTO and a calculation with overtime factor .00072, the agency must calculate the correct earnings amount using the overtime factor of .00120.  The difference owed is calculated using Earnings Code AOR, the original Earnings Begin Date, and the original Earnings End Date.

If an eligible employee previously received overtime during the above period using Earnings Code CVO and a calculation with overtime factor .00072, the agency must calculate the correct earnings amount using the overtime factor of .00120. The difference owed is calculated using Earnings Code ACO, the original Earnings Begin Date, and the original Earnings End Date.

Previously Paid Overtime Using the Remaining Earnings Codes Listed Above

If an eligible employee was previously paid overtime for the period identified above using the Original Earns Code, the agency must update these records on the Time Entry Page or Time Entry Interface as follows:

• Enter the Original Earns Code, the original Earnings Begin Date, the original Earnings End Date, and the original Hours/Units/Amount as a negative value.
• Enter the corresponding New 2.5x Earns Code, the original Earnings Begin Date, the original Earnings End Date, and the original Hours/Units/Amount as a positive value.

Retirement Information

Monies paid using earnings codes mentioned above are included as salary for retirement purposes.

Tax Information

These earnings are taxable income, will be included in the employee’s taxable gross, and are subject to all employment and income taxes. Income taxes will be calculated using the employee’s current withholding elements in PayServ.

The Retro Codes (RC5, RO5, R25, RH5, RR5, RS5, RPY, RA5, RA2, and RP5) are supplemental taxable income and will be included in the employee’s taxable gross subject to all employment and income taxes.

Federal, State, and New York City income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding will be calculated using the Flat Rate method (2.30815% for Yonkers residents and 0.50% for Yonkers non-residents).

Questions

Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.

Questions regarding general deductions may be directed to the Payroll Deduction mailbox.