Loading...
Item 4CITEM 4C M E M O R A N D U M November 22, 2019 TO: Shana K. Yelverton, City Manager FROM: Stacey Black, Director of Human Resources SUBJECT: Resolution No. 19-042, Amending the City of Southlake Personnel Policy 603 – Overtime and Compensatory Time and providing an effective date. Action Requested: City Council approval of Resolution No. 19-042 to amend the City of Southlake Personnel Policy 603 – Overtime and Compensatory Time and providing an effective date. Background Information: The City’s Employee Handbook contains all personnel policies approved by both the City Council and the City Manager. Section 4.14 of the City Charter requires City Council approval for all personnel policies that have financial implications. The City Manager has the authority to approve personnel policies that do not have financial implications, provided City Council is notified of all such changes. This request is to specifically revise Policy 603 – Overtime and Compensatory Time to increase the compensatory time accrual limit. The compensatory time policy allows non-exempt employees to accrue paid time off in lieu of overtime pay and employees may currently accrue up to 48 hours of compensatory time. Time off is accrued at 1.5 times per hour of overtime worked. An employee must request, in advance, to use compensatory time and the request must be approved by a supervisor prior to taking leave. The City is required to pay any accrued but unused compensatory time to employees upon separation of employment. City Council approved the proposed FY 2020 budget on September 17, 2019. As part of the annual budget process, staff analyzed the comprehensive benefits package offered to employees in an effort to balance employee needs and manage financial sustainability. Part of that analysis included a review of the results of the biennial Employee Benefits Survey. On the survey, compensatory time ranked 7th on a list of 23 employee benefits and 80% of respondents indicated the benefit was very important to them. Increasing the compensatory leave limit was the third most requested benefit on the survey, behind lowering the cost of the health plan and improving the health plan. Shana K. Yelverton, City Manager ITEM 4C November 22, 2019 Page 2 Compensatory time provides employees with paid time off and helps support a healthy work-life balance. The City benefits from compensatory time because time off is granted to an employee instead of paying an employee overtime and the cost of the time off is built into the annual, budgeted salary of an employee. Currently, 192 employees have accrued compensatory leave with an average accrual of 19.85. 16 employees are at the 48-hour maximum accrual amount. The proposed revisions to the Overtime and Compensatory Time policy are summarized below: • Amend the policy to increase the accrual limit from 48 hours to 60 hours. Amending the policy allows employees to accrue an additional 12 hours of compensatory leave and still maintains a cap. All other provisions of the policy remain unchanged. A redlined copy of the current policy and a copy of the proposed policy are attached. Amending the Overtime and Compensatory Time policy enhances a desired benefit for current and future employees with minimal financial impact. The propose14.92d policy is competitive with other municipal compensatory policies and aligns with the City’s strategies to attract, develop and retain a skilled workforce and to be an employer of choice. Financial Considerations: There are several factors when considering financial considerations. The impact only occurs when an employee separates employment from the City and has a compensatory time accrual balance. In FY 2019 the City paid $14,258 (492.31 hours) of accrued, but unused compensatory leave to employees upon separation of employment. The average number of hours an employee had accrued was 14.92 hours. One employee was at the 48-hour maximum accrual upon separation. The anticipated financial impact of this policy change is minimal. Strategic Link: • Focus Area: Performance Management and Service Delivery • Corporate Objective: L3 Attract, develop and retain a skilled workforce • Employer of Choice Citizen Input/ Board Review: N/A Shana K. Yelverton, City Manager ITEM 4C November 22, 2019 Page 3 Legal Review: The City Attorney has reviewed the proposed revisions to the Overtime and Compensatory Time policy. Alternatives: Changes as may be desired by the City Council. Deny the request and maintain the currently approved policy. Supporting Documents: Attachment A: Proposed Policy 603 – Overtime and Compensatory Time Attachment B: Redlined Policy 603 – Overtime and Compensatory Time Resolution No. 19-042 Staff Recommendation: City Council approval of Resolution No. 19-042, amending the City of Southlake Personnel Policy 603 – Overtime and Compensatory Time and providing an effective date. Attachment A: Proposed Policy Page 1 603: Overtime and Compensatory Time 603.01 Policy. Overtime compensation shall be paid to all non-exempt employees in accordance with federal and state wage and hour requirements. Exempt employees shall not be paid overtime compensation. 603.02 Eligibility. All non-exempt employees are eligible for overtime compensation. Employees in positions that are designated as exempt under the Fair Labor Standards Act (FLSA) regulations are not eligible for overtime compensation. The Director of Human Resources is responsible for determining the exempt or non-exempt status of positions in accordance with FLSA. 603.03 General. When the city’s operating requirements or other needs cannot be met during regular working hours, non-exempt employees may be required to work overtime, at the request of their supervisor. When possible, advance notification of mandatory overtime assignments will be provided. Refusal or other failure to work mandatory overtime may result in corrective action, up to and including termination of employment. Overtime work is otherwise subject to the same attendance policies as straight time work. 603.04 Work Assignments. Overtime assignments will be distributed as equitably as practical to all non-exempt employees qualified to perform the required work. 603.05 Rate of Pay. Overtime shall be paid to non-exempt employees at one and one-half (1½) times the regular rate of pay in accordance with FLSA and as described below. 603.05.01 Civilian Employees. Overtime shall be paid for hours worked in excess of forty (40) hours in a work week. 603.05.02 Sworn Police Personnel. Overtime shall be paid to sworn police personnel for hours worked in excess of eighty (80) hours during a 14-day work period. 603.05.03 Sworn Fire Shift Personnel. Overtime shall be paid to sworn fire shift personnel for hours worked in excess of one hundred fourteen (114) hours during a 15-day work period. 603.05.04 Sworn Fire Non-Shift Personnel. Over time shall be paid for hours worked in excess of forty (40) hours in a work week. 603.05.05 Hours Worked. Hours worked is defined as those hours actually worked on behalf of the employer plus holiday pay. Vacation, sick, compensatory and other paid time off is not considered as hours worked. 603.06 Unauthorized Overtime. All non-exempt employees shall receive their supervisor’s prior authorization before performing any overtime work. This means employees may not begin work prior to their scheduled work day and may not continue working beyond the end of their scheduled workday, without prior authorization from the appropriate supervisor. Similarly, Attachment A: Proposed Policy Page 2 employees may not work through their lunch break without prior authorization from the appropriate supervisor. In addition, employees may not conduct work via electronic devices when not on duty, such as checking their work email without prior approval. Non-exempt employees who work overtime without receiving proper authorization shall receive compensation for all hours worked, but may be subject to corrective action, up to and including termination of employment. 603.07 Compensatory Time Off in lieu of Overtime. Non-exempt employees may accrue compensatory time in lieu of being paid overtime compensation. Compensatory time is accrued at the rate of one and one-half (1½) hours of compensatory time for each hour of overtime worked. 603.07.01 Compensatory Accrual Limit. Employees may accrue a maximum of 48 hours of compensatory time off. All other overtime worked shall be paid in wages. 603.07.02 Use of Accrued Compensatory Time. Use of compensatory time off is subject to the approval of the employee’s supervisor. An employee who requests use of such time shall be permitted to use the time off within a reasonable period after making the request, if it does not unduly disrupt the work of the department. The city may, at any time, elect to pay a non-exempt employee for any or all of the employee’s accrued compensatory time. The city may also require employees to take time off in order to reduce their accrued compensatory time. Otherwise, compensatory time off may be used the same as leave time. 603.07.03 Compensatory time accrued, but not used, shall be paid to employees upon termination of employment or upon transfer to an exempt classified position. 402.06 Approval and Effective Date. This policy was approved by City Council on December 3, 2019 by Resolution No. 19-042, and is effective January 1, 2020. It supersedes all previous policies. Attachment B: Redlined Policy  Page 1  603: Overtime and Compensatory Time  603.01 Policy. Overtime compensation shall be paid to all non‐exempt employees in accordance with  federal and state wage and hour requirements. Exempt employees shall not be paid overtime  compensation.  603.02 Eligibility. All non‐exempt employees are eligible for overtime compensation. Employees in  positions that are designated as exempt under the Fair Labor Standards Act (FLSA) regulations  are not eligible for overtime compensation. The Director of Human Resources is responsible  for determining the exempt or non‐exempt status of positions in accordance with FLSA.  603.03 General. When the city’s operating requirements or other needs cannot be met during regular  working hours, non‐exempt employees may be required to work overtime, at the request of  their supervisor. When possible, advance notification of mandatory overtime assignments will  be provided. Refusal or other failure to work mandatory overtime may result in corrective  action, up to and including termination of employment. Overtime work is otherwise subject  to the same attendance policies as straight time work.  603.04 Work Assignments. Overtime assignments will be distributed as equitably as practical to all  non‐exempt employees qualified to perform the required work.    603.05 Rate of Pay. Overtime shall be paid to non‐exempt employees at one and one‐half (1½) times  the regular rate of pay in accordance with FLSA and as described below.   603.05.01 Civilian Employees. Overtime shall be paid for hours worked in excess of forty (40)  hours in a work week.  603.05.02 Sworn Police Personnel. Overtime shall be paid to sworn police personnel for  hours worked in excess of eighty (80) hours during a 14‐day work period.  603.05.03 Sworn Fire Shift Personnel. Overtime shall be paid to sworn fire shift personnel  for hours worked in excess of one hundred fourteen (114) hours during a 15‐day  work period.  603.05.04 Sworn Fire Non‐Shift Personnel. Over time shall be paid for hours worked in  excess of forty (40) hours in a work week.   603.05.05 Hours Worked. Hours worked is defined as those hours actually worked on behalf  of the employer plus holiday pay. Vacation, sick, compensatory and other paid  time off is not considered as hours worked.  603.06 Unauthorized Overtime. All non‐exempt employees shall receive their supervisor’s prior  authorization before performing any overtime work. This means employees may not begin  work prior to their scheduled work day and may not continue working beyond the end of their  scheduled workday, without prior authorization from the appropriate supervisor. Similarly,  Attachment B: Redlined Policy  Page 2  employees may not work through their lunch break without prior authorization from the  appropriate supervisor. In addition, employees may not conduct work via electronic devices  when not on duty, such as checking their work email without prior approval. Non‐exempt  employees who work overtime without receiving proper authorization shall receive  compensation for all hours worked, but may be subject to corrective action, up to and  including termination of employment.  603.07 Compensatory Time Off in lieu of Overtime. Non‐exempt employees may accrue  compensatory time in lieu of being paid overtime compensation. Compensatory time is  accrued at the rate of one and one‐half (1½) hours of compensatory time for each hour of  overtime worked.  603.07.01 Compensatory Accrual Limit. Employees may accrue a maximum of 48 60 hours  of compensatory time off. All other overtime worked shall be paid in wages.  603.07.02 Use of Accrued Compensatory Time. Use of compensatory time off is subject to  the approval of the employee’s supervisor. An employee who requests use of  such time shall be permitted to use the time off within a reasonable period after  making the request, if it does not unduly disrupt the work of the department. The  city may, at any time, elect to pay a non‐exempt employee for any or all of the  employee’s accrued compensatory time. The city may also require employees to  take time off in order to reduce their accrued compensatory time. Otherwise,  compensatory time off may be used the same as leave time.  603.07.03 Compensatory time accrued, but not used, shall be paid to employees upon  termination of employment or upon transfer to an exempt classified position.  402.06 Approval and Effective Date. This policy was approved by City Manager Shana Yelverton on  April 6, 2016 and is effective April 15, 2016 This policy was approved by City Council on  December 3, 2019 by Resolution No. 19‐042, and is effective January 1, 2020.  It supersedes  all previous policies.  Page 1 RESOLUTION NO. 19-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING CITY OF SOUTHLAKE PERSONNEL POLICY 603 – OVERTIME AND COMPENSATORY TIME AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake (the "City") previously adopted personnel policies; and WHEREAS, the City wishes to revise Personnel Policy 603 – Overtime and Compensatory Time to replace the previously adopted personnel policy; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Section 1. The City of Southlake hereby approves and adopts the following policy that has financial implications, a copy of which is attached as Exhibit “A” and is incorporated into the Employee Handbook: Policy 603 – Overtime and Compensatory Time Section2. That this resolution is in effect upon passage and adoption by the City Council effective January 1, 2020. PASSED AND APPROVED THIS THE ____ DAY OF ________________________, 2019. _____________________________________ Laura K. Hill, Mayor ATTEST: __________________________________ Amy Shelley, City Secretary Resolution No. 19-042: Exhibit A Page 1 603: Overtime and Compensatory Time 603.01 Policy. Overtime compensation shall be paid to all non-exempt employees in accordance with federal and state wage and hour requirements. Exempt employees shall not be paid overtime compensation. 603.02 Eligibility. All non-exempt employees are eligible for overtime compensation. Employees in positions that are designated as exempt under the Fair Labor Standards Act (FLSA) regulations are not eligible for overtime compensation. The Director of Human Resources is responsible for determining the exempt or non-exempt status of positions in accordance with FLSA. 603.03 General. When the city’s operating requirements or other needs cannot be met during regular working hours, non-exempt employees may be required to work overtime, at the request of their supervisor. When possible, advance notification of mandatory overtime assignments will be provided. Refusal or other failure to work mandatory overtime may result in corrective action, up to and including termination of employment. Overtime work is otherwise subject to the same attendance policies as straight time work. 603.04 Work Assignments. Overtime assignments will be distributed as equitably as practical to all non-exempt employees qualified to perform the required work. 603.05 Rate of Pay. Overtime shall be paid to non-exempt employees at one and one-half (1½) times the regular rate of pay in accordance with FLSA and as described below. 603.05.01 Civilian Employees. Overtime shall be paid for hours worked in excess of forty (40) hours in a work week. 603.05.02 Sworn Police Personnel. Overtime shall be paid to sworn police personnel for hours worked in excess of eighty (80) hours during a 14-day work period. 603.05.03 Sworn Fire Shift Personnel. Overtime shall be paid to sworn fire shift personnel for hours worked in excess of one hundred fourteen (114) hours during a 15-day work period. 603.05.04 Sworn Fire Non-Shift Personnel. Over time shall be paid for hours worked in excess of forty (40) hours in a work week. 603.05.05 Hours Worked. Hours worked is defined as those hours actually worked on behalf of the employer plus holiday pay. Vacation, sick, compensatory and other paid time off is not considered as hours worked. 603.06 Unauthorized Overtime. All non-exempt employees shall receive their supervisor’s prior authorization before performing any overtime work. This means employees may not begin work prior to their scheduled work day and may not continue working beyond the end of their scheduled workday, without prior authorization from the appropriate supervisor. Similarly, Resolution No. 19-042: Exhibit A Page 2 employees may not work through their lunch break without prior authorization from the appropriate supervisor. In addition, employees may not conduct work via electronic devices when not on duty, such as checking their work email without prior approval. Non-exempt employees who work overtime without receiving proper authorization shall receive compensation for all hours worked, but may be subject to corrective action, up to and including termination of employment. 603.07 Compensatory Time Off in lieu of Overtime. Non-exempt employees may accrue compensatory time in lieu of being paid overtime compensation. Compensatory time is accrued at the rate of one and one-half (1½) hours of compensatory time for each hour of overtime worked. 603.07.01 Compensatory Accrual Limit. Employees may accrue a maximum of 48 hours of compensatory time off. All other overtime worked shall be paid in wages. 603.07.02 Use of Accrued Compensatory Time. Use of compensatory time off is subject to the approval of the employee’s supervisor. An employee who requests use of such time shall be permitted to use the time off within a reasonable period after making the request, if it does not unduly disrupt the work of the department. The city may, at any time, elect to pay a non-exempt employee for any or all of the employee’s accrued compensatory time. The city may also require employees to take time off in order to reduce their accrued compensatory time. Otherwise, compensatory time off may be used the same as leave time. 603.07.03 Compensatory time accrued, but not used, shall be paid to employees upon termination of employment or upon transfer to an exempt classified position. 402.06 Approval and Effective Date. This policy was approved by City Council on December 3, 2019 by Resolution No. 19-042, and is effective January 1, 2020. It supersedes all previous policies.