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DEPARTMENT OF ADMINISTRATIVE & FINANCIAL SERVICES
Bureau of Human Resources


January 26, 1996

HUMAN RESOURCES MEMORANDUM 4-96


TO: All Agency/Department Heads/Directors of Administrative Services/Personnel Officers/Equal Opportunity Employment Officers
SUBJECT: Compensatory Time Accumulations

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The purpose of this Memorandum is to ensure that the accumulation of compensatory time off that is provided to overtime eligible employees in lieu of cash payment for working overtime complies with the limits set forth by the Federal Fair Labor Standards Act (FLSA).

Most agreements governing the accumulation of compensatory time provide a maximum accumulation of 240 or 300 hours.  Generally, employees who reach this maximum accumulation must reduce their 240-hour or 300-hour maximum or be paid in cash for any additional compensatory time off earned.  However, these same agreements allow an employee who has reached the maximum to carry over this additional time whenever time off cannot be approved for operational reasons.  Consequently, some employees have accumulations far in excess of the 240-hour or 300-hour maximum.

Accumulations of compensatory time off that are allowed under this practice may be in conflict with the Federal regulations for employees who are covered by the overtime provisions of the Fair Labor Standards Act.  The FLSA regulations provide the following accumulations of compensatory time of in lieu of cash payment for overtime worked:

  1. A maximum of 480 hours of compensatory time may be accrued for employees engaged in public safety, emergency response or seasonal activity.  Once this maximum is reached, any overtime hours worked in excess of the 360 hours of overtime worked to accumulate 480 hours must be paid for in cash.
  2. A maximum of 240 hours may be accrued by all other employees.  Once this maximum is reached, any overtime hours worked in excess of the 160 hours of overtime worked to accumulate 240 hours must be paid for in cash.

In accordance with the 480-hour and 240-hour limits to compensatory time accumulations that are allowed in lieu of cash payment for overtime worked under the FLSA, departments and agencies must review all compensatory time accumulations of employees who are covered by the FLSA overtime provisions to identify accumulations that are in conflict with these limits.  When excesses to the FLSA limits are found, the department must pay the affected employees in cash for their excess hours unless by mutual agreement the affected employee prefers and the employing department can accommodate time off with pay immediately.  Under most agreements, the State has the option to pay cash for up to one-half of an employee's accumulated compensatory time.

 

_________________________
Nancy J. Kenniston, Director
BUREAU OF HUMAN RESOURCES

Attachment
Corrections to HR Memorandum 4-96