Interim Overtime Policies

Interim heure supplémentaire can add up quickly, making it essential to have policies in place for managing the additional costs of staffing for a short-term assignment. These policies should cover how overtime is calculated and paid, including whether the regular rate can be used or whether compensatory time must be paid in addition to overtime.

Salary-based overtime – In general, employees paid a salary for a set number of hours each week must be compensated at one and one-half times their regular rate for any work in excess of 40 hours per week. The regular rate is determined by dividing the employee’s weekly salary by the total number of hours in the pay period. Hours worked on holidays, days off, sick or vacation leave, military reserve duty, or educational leave do not count toward the total of 40 hours per week for which overtime must be paid.

“Understanding Interim Overtime: Guidelines and Considerations

Temporary workers on flexible alternative work schedules – For nonexempt temporary agency staff members placed with federal clients, some policies prohibit them from working more than 40 hours in a week without supervisor approval. These rules do not mitigate the need to pay overtime for hours worked in excess of the 40-hour limit because all such work must be credited as overtime.

Compensatory time off – Nonexempt FLSA exempt and non-FLSA covered agency workers may be compensated in lieu of overtime pay with compensatory time off if the policy is approved by the authorized official. However, an agency’s compensatory time off policy must comply with the requirements of 5 U.S.C. 5542(2) and other applicable law.