City and County of San Francisco Department of Human Resources

Gavin Newsom Philip A. Ginsburg

Mayor Human Resources Director

OVERTIME AND COMPENSATORY TIME

Employee Relations: Procedures and Guidelines
ERD #03-2006 - 8/3/2006

Overtime and compensatory time may only be earned if authorized and approved in advance by an Appointing
Officer.

I. Overtime and Compensatory Time for Non-‘Z’/Non-Exempt Employees

A. Fair Labor Standards Act (FLSA) Overtime

• FLSA overtime is for hours worked in excess of 40 in a week (Saturday 12:00 a.m. through Friday 11:59
p.m.)
• FLSA overtime is one-and-one-half times (1.5x) an employee’s regular rate of pay; that is, an
employee’s base rate of pay plus any regularly earned premiums.
o Example: If an employee is regularly scheduled to work the night shift and then works an
overtime assignment during the day, the employee’s regular rate of pay (including the night shift
premium) should be used to calculate the overtime rate for that daytime, overtime assignment.
Conversely, an employee who is regularly scheduled to work the day shift will receive overtime
based on his regular rate of pay, even if the overtime occurs during the night.
o Note: If an employee’s regular shift consists of four hours with an 8.5% night shift premium and
4 hours with a 10% night shift premium, that employee’s regular rate of pay would be the base
rate with an average (blended) night shift premium of 9.25%. However, as the City’s payroll
systems cannot presently accommodate blended rates, the higher rate must be utilized. In this
instance, the regular rate that should be utilized for overtime would be the employee’s base rate
of pay with the 10% night shift premium.

B. FLSA Compensatory Time (in lieu of paid overtime)

• Accrued compensatory time for Non-‘Z’ employees must be cashed out upon separation and may be
cashed out at the end of each fiscal year (at the regular rate of pay).
• Cap – Employees may accrue up to the cap and then must be paid overtime.
o 480 hours – Safety (e.g., Police, Fire)
o 240 hours – Non-Safety

C. MOU Overtime and Compensatory Time (Non-FLSA)

• MOU overtime is overtime that is earned per the terms of the MOU, but not mandated by the FLSA.
Unless and until an administrative system is set up and capable of distinguishing between FLSA and
non-FLSA overtime, non-FLSA overtime should be administered the same as FLSA overtime (e.g., use
the hourly rate based on an employee’s regular rate of pay).
• Additionally, unless and until an administrative system is set up and capable of distinguishing between
FLSA and non-FLSA compensatory time, MOU compensatory time earned in lieu of paid MOU
overtime is administered the same as FLSA compensatory time.

44 Gough Street, San Francisco, CA 94103-1233 ▪ (415) 557-4800 ▪ www.sfgov.org/dhr

 • MOU overtime is earned not merely for hours worked in excess of 40 in a week, but may also be for
hours worked in excess of 8 in a day or outside of certain specified hours in a day (e.g., hours outside of
an alternative work schedule). Additionally, specified paid leave such as legal holidays, vacation and
sick pay may be counted as hours worked for MOU overtime calculations. Please reference the specific
MOU for which hours are counted toward overtime calculations.

II. Compensatory Time for ‘Z’/Exempt Employees

• Cap – Unless defined by an MOU, there is no cap.

• Accrual Rate – one-and-one-half-time (1.5x). Exception, under the TWU Local 200 MOU, employees
earn compensatory time at straight time.
• Cashing Out Compensatory Time for ‘Z’ Employees
o Upon Separation: Compensatory time earned by ‘Z’ employees may not be cashed out.
o During the Course of Employment: Some MOUs allow for the cashing out of compensatory time
during the course of employment in limited circumstances, but the general rule is that
compensatory time earned by ‘Z’ employees may not be cashed out during the course of
employment. Please reference the specific MOU for the circumstances under which such hours
may be cashed out. Below is a non-exhaustive list of some situations under which compensatory
time may be cashed out.

Suspension of Z – Pursuant to ASO Section 1.3, allows for limited paid overtime in lieu
of compensatory time in extraordinary circumstances, within a specified time period.

Legal Holidays – Compensatory time earned for working on legal holidays may be cashed
out at the end of the fiscal year (SEIU UHW, 535 and 790 MOU only).

2940/2944 Protective Service Workers – These employees are cashed out for all
compensatory time hours in excess of 240 hours on a quarterly basis.

III. Municipal Executive Association (MEA) - Executive Leave and Administrative Leave

• Executive Leave – MEA employees in the Executive Management Unit shall receive 5 days (40 hours)
of executive leave per fiscal year.
• Administrative Leave – MEA employees in the Management (M) and Management-Special Assistant
(SA) may earn up to 100 hours of administrative leave per fiscal year
• MEA employees may not earn compensatory time unless they are Non-Z and is in lieu of paid overtime.

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