Compensatory Leave

It is the University’s objective to provide eligible employees with paid leave as
compensation for additional hours worked during specific times. 

I. Employees To Whom Policy Applies

This policy applies to full-time and part-time classified salaried employees, University staff, and salaried research assistants.

II. Definitions

1. Compensatory leave/timeCompensation provided as hour for hour leave (time off) as opposed to payment at the employee’s hourly pay rate.
2. Exempt employee
   An employee who is not subject to the overtime provisions of the Fair Labor Standards Act.
    
3. Non-exempt employee
   An employee who is subject to the overtime provisions of the Fair Labor Standards Act.

III. Purpose of Compensatory Leave

1. Why compensatory leave
   Compensatory leave is paid time off for an eligible employee having worked
   additional hours in a workweek; having worked on an official office closing day,
   a holiday, or a scheduled day off; or when a holiday falls on an employee's
   scheduled day off.
    
2. Use of compensatory leave
   Accrued compensatory leave may be used to provide paid time off from work for
   any purpose.
    
3. Management action on requests for use of compensatory leave
   When practicable, and for as long as the University’s operations are not adversely affected, the University should attempt to approve an employee’s request to use
   compensatory leave. The University may also schedule use of compensatory leave at
   a time convenient to University operations.

IV. Accrual of Compensatory Leave

1. Rate of accrual
   Eligible employees earn compensatory leave on an hour-for-hour basis.
   Accordingly, an employee may earn one hour of compensatory leave for each
   hour that he or she is required to work for the reasons cited in section III (A)
   above.
    
2. Duration of accrued compensatory leave
   Accrued compensatory leave lapses within 12 months from the date it is earned.
   Once lapsed; accrued compensatory leave may not be used, carried forward to the next year, or paid off upon an employee's change of status.
    
3. Exception to duration for certain positions as a retention incentive
   The University may extend indefinitely the time employees have to use earned
   compensatory leave when the employees hold positions that have been identified
   by the University as critical to the University’s mission and for which the University has
   significant difficulty retaining qualified employees (See Compensation policy).
    
   1. When an employee is transferred, promoted or demoted to a position that
      does not have the same designation, the employee’s compensatory leave
      balances that were extended will lapse 12 months from the date of status
      change, if they are not used before that date.
   2. However, when an employee is transferred, promoted or demoted to a
      position that does not have the same designation, the University may
      authorize payment for any compensatory balances that were extended but
      not used prior to the status change.
       

V. How Compensatory Leave Is Credited For Non-Exempt Employees

1. Eligibility to receive compensatory leave
   A non-exempt employee is eligible to earn compensatory leave when the employee has worked overtime hours but has not actual worked over 40 hours in the workweek.  Various leaves (annual, VSDP, Traditional sick) and holidays do not count as hours worked.  If a non-exempt employee works more than 40 hours, the employee must be paid time and one-half overtime or receive Overtime Leave (see Overtime Leave policy).
   
   EXAMPLE:
   A non-exempt employee who works ten hours on Monday, calls in sick on
   Tuesday (8 hours), and works eight hours on Wednesday, Thursday, and Friday will receive two hours of compensatory leave for the extra hours worked on Monday.  The employee is not eligible for time and one-half overtime pay or Overtime Leave because the employee did not actually work over 40 hours during the workweek.
    
2. Required by management
   To earn compensatory leave, a non-exempt employee must be required by management to work:
   1. additional hours in a workweek in which the employee has taken a holiday
      or leave, but has worked no more than 40 hours;
   2. on an official office closing day if he or she is designated as an "essential
      employee";
   3. on a holiday; or
   4. on a scheduled day off.
      
      NOTE: Non-exempt employees also will be credited with compensatory
      leave when a holiday falls on a scheduled rest day.

    

VI. How Compensatory Leave Is Credited For Exempt Employees

1. Exempt employee will receive compensatory leave
   An exempt employee will earn compensatory leave when required by management to work:
   1. on an official office closing day if he or she is designated as an "essential
      employee"; or
   2. on a holiday.

   NOTE: Exempt employees will be credited with compensatory leave when a
   holiday falls on a scheduled rest day.
    

2. Other times for earning compensatory leave
   An exempt employee may be awarded compensatory leave when the employee is required by management to work more hours in a workweek than management believes is reasonably expected for the accomplishment of the position’s duties.
    
3. Meaning of "required to work"
   1. The requirement to work additional hours must be specifically authorized by management. General or blanket authorization for an exempt employee to work beyond his or her regularly-scheduled hours shall not be the basis for earning compensatory leave.
   2. Additional work hours are intended only to relieve specific peak workload needs and shall not be authorized to provide for continuous workload requirements.
   3. Additional work hours do not include extra hours that an exempt employee independently determines is necessary to carry out his or her job responsibilities.

VII. Compensatory Leave (other than Official Office Closings and Holidays) Must Be Authorized.

An employee must have UHR's Division of Compensation and Rewards approval before earning compensatory leave.

1. In Writing
   Compensatory leave must be authorized in writing by UHR’s Division of Compensation and Rewards
    
2. In Advance
   Compensatory leave should be authorized before the employee works the hours that result in compensatory leave. However, if emergency conditions exist which make it impossible to authorize compensatory leave before it is earned; written authorization should be prepared as soon as possible, thereafter.

VIII. Treatment of Compensatory Leave Upon Change of Status

1. Payment of Compensatory Leave Balance
   1. Full lump sum payment
      An employee shall be paid in a lump sum for his or her accrued
      compensatory leave when the employee:
      1.  leaves state service by resignation, retirement, layoff, termination,
         death; or
      2. is transferred, promoted, or demoted from one state agency to
         another.
   2. Payment upon employee's death
      Payment upon an employee's death shall be made to the Administrator or
      the Executor/Executrix. If there is no Administrator or Executor of the
      employee's estate, payment shall go to the surviving spouse, or if none, to
      the next of kin in accordance with section 64.1-123 of the Code of
      Virginia. Payment may be held for 60 days.
       
2. Change of status
   Balances will be retained when classified employees reduce work hours.
    
3. Payment optional when other changes in status
   The University may allow employees to retain their accrued compensatory leave, or
   such leave may be paid in a lump sum when employees are:
   1. placed on voluntary leave without pay (not layoff) for at least three
      months; or
   2. transferred from a covered to a non-covered position.
       
4. Retention of accrued compensatory leave
   When an employee is transferred, promoted or demoted to another classified salaried, research assistant, or University staff position within the University, the employee will retain his or her accrued compensatory leave.
    
5. Impact of military leave on compensatory leave.
   At the employee’s option, all or part of compensatory leave balances may be:
    
   • Applied to the period of absence due to military service;
   • Paid up to the allowable payment limit at the time of placement on leave
     without pay; and/or
   • Retained until reinstatement from military leave without pay.
     Retained compensatory leave will be available for use for one year following
     reinstatement.
     
     Note: At the employee’s option, payment may be made in either:
      
     1. lump sum or
     2. payment on the regular payroll schedule.

Authority and Interpretation

1. This policy is issued by University Human Resources pursuant to the authority granted by the Commonwealth's Compensation Plan.
2. The Chief Human Resources Officer is responsible for official interpretation of this policy.