Labor Distribution
Policy
17-3: Excess time
Effective: July 1, 1994
Revised: April 29, 2026
Reviewed: DHRM R477-7, DHRM R477-8
Purpose
This policy outlines how excess time is managed and accounted for.
Definitions
Compensatory (comp) time – Paid time off earned by an employee for working over their overtime base.
Excess time – Hours exceeding an employee’s overtime base as a result of holiday, jury duty, and/or military leave.
FLSA exempt (exempt) employees – Employees who are exempt from the Fair Labor Standards Act and aren’t paid overtime pay, no matter how many hours they work.
FLSA non‐exempt (non-exempt) employees – Employees to whom the Fair Labor Standards Act is applicable and who are paid overtime when they work more than 40 hours in a designated workweek
Overtime – Hours an employee works over their overtime base.
Overtime base – Overtime bases vary based on employee type:
- Non-exempt employees: 40 hours in a workweek.
- Exempt employees: 80 hours in a pay period.
Policy
A – Employees receive excess time
1 – Exempt and non-exempt employees receive excess time at their regular rate for any hours exceeding their overtime base due to holiday, jury duty, and/or military leave.
2 – Employees can’t use comp, sick, or annual leave to earn excess time.
2a – Supervisors and payroll coordinators must ensure that employees don’t enter comp, sick, or annual leave on their timesheet if it results in earning excess leave.
3 – Excess time can’t be accumulated and will be paid out at the employee’s regular rate when earned.
4 – See the following example of a non-exempt employee’s work schedule:
| Non-exempt | Week 1 | Week 2 | Pay period 1 |
| Worked | 36 | 46 | 82 |
| Holiday | 8 | 0 | 8 |
| Total | 44 | 46 | 90 |
| Excess hours | 4 | 0 | 4 |
| Overtime hours | 0 | 6 | 6 |
4a – The non-exempt employee can choose to accrue 9 hours of comp time (6 overtime hours * 1.5) or be paid out 9 hours at their regular payrate. The employee is also paid 4 excess hours at their regular rate.
5 – See the following example of an exempt employee’s work schedule:
| Exempt | Week 1 | Week 2 | Pay period 1 |
| Worked | 36 | 46 | 82 |
| Holiday | 8 | 0 | 8 |
| Weekly | 44 | 46 | 90 |
| Excess hours | 8 | ||
| Comp hours | 2 |
5a – The exempt employee accrues 2 hours of comp time and is paid 8 excess hours.
B – Employees excess time must be paid out and accounted for
1 – When employees are paid for excess time, the amount paid to the employee and the fringe benefits related to the excess hours are charged to the coding block(s) where the hours were worked in the employee’s time sheet for the pay period.