Pay and Hours of Work

At what salary will my one-time overtime payment be calculated?

Your one-time overtime payment covering the period from August 23, 2004 through June 30, 2006 will be calculated at your current hourly rate of pay if you have been in that position for the whole period. If you were promoted during the period, your payment will be calculated at the hourly rate of pay you were paid when you left the position.

How will this amount be determined?

The amount of the one-time overtime payment for each affected employee will be calculated as follows:

• The average overtime paid to C&T staff since August 2004 will be used. In most caes, the data will be based on school or division level. This is referred to as the Division/School Average.
• Under the regulations, time not worked such as vacation, holiday or sick time is not counted for overtime calculations. As a result, in calculating the retroactive overtime, we will adjust a 52-week year to 45 weeks to reflect estimated time not worked. This is the individual’s Yearly Average.
• This Division/School Average will be multiplied by 45 (the Yearly Average). This is referred to as the Yearly Hours.
• This Yearly Hours total will be multiplied by time in position since August 23, 2004, measured in years. This is referred to as Hours Payable.
• The Hours Payable is multiplied by the overtime rate of 1.5. This is the Overtime Payable.
• The Overtime Payable will be multiplied by the individual’s current hourly rate of pay. This is the amount of retroactive overtime payment and is subject to deductions for taxes. 

If the affected employee believes that there is a substantial difference between the Division/School Average and what he/she actually worked during the relevant period, that employee should contact his/her supervisor. The supervisor will review the request with Human Resources and the department’s salary coordinator to determine if an adjustment is warranted.

When will I receive my one-time overtime payment?

If you are an active employee, you will receive your one-time overtime pay covering the time period that you have been in the position since August 23, 2004, based on the calculations above, on or before June 30, 2006. 

If you are an inactive employee, you will receive your one-time overtime pay covering the time period that you have been in the position since August 23, 2004, based on the calculations above, in the month of July.

If an employee requests a review and as a result, it is determined that an adjustment is warranted, the payment of the adjustment will be made at a later date.

Why is the University paying overtime for the period between August 23, 2004 and June 30, 2006?

The University has decided, on a voluntary basis, to make back payments to individuals who become overtime eligible as a result of this review from the effective date of the new regulations, August 23, 2004.

On what basis is overtime calculated?

Overtime pay is calculated on a weekly basis for hours worked beyond your regular workweek of 37.5 or 40 hours. All forms of paid time off are counted as time worked. While overtime is recorded weekly, it will be paid on a monthly basis from the Casual Payroll.

What are my standard hours?

At Yale, the standard workweek is 37.5 or 40 hours for full-time work employment, depending on the position and department. If you have any questions about the workweek applicable to your position, please consult with your business manager.

How does Yale calculate the hourly rate of pay for these employees?

For those employees whose regular workweek is 37.5 hours per week, their full time equivalent (FTE) annual salary should be divided by 1950 in order to calculate their hourly rate of pay.

For those employees whose regular workweek is 40 hours per week, their FTE annual salary should be divided by 2080 in order to calculate their hourly rate of pay.

Going forward, what hours are considered overtime and how will I be paid for them?

Beginning July 1, 2006, you will be eligible for overtime pay at 1.5 times your regular rate of pay when you are required to work more than either 37.5 or 40 hours depending on the number of hours in your regular work week.  Upon the change of your position to overtime-eligible, all forms of paid time off will be counted as time worked for the purposes of computing overtime after July 1, 2006, however, the hours paid as a holiday or recess day shall be counted only when the holiday or recess day falls on a day normally worked by the employee.  If an employee works on a scheduled holiday or recess day, he or she shall have counted the greater of (1) the number of hours actually worked on that holiday or recess day, or (2) the number of hours that would have been counted had he or she not worked on that holiday or recess day.

All overtime must be approved in advance by supervisors. Overtime hours worked must be tracked, approved and reported to ensure appropriate compensation.

Going forward, how will overtime be calculated for part-time employees?

Part-time employees will be compensated for any overtime hours worked over 37.5 or 40 hours in a regular workweek at a rate of time and one half their current hourly rate of pay.

For example, if a part-time employee’s regular work week is 20 hours per week, then from the 21st hour to the 37th and one half (or 40th) hour, he or she will be compensated for those hours at straight time. Any hours worked over the 37th and one half (or 40th) hour will be compensated at time and one half.

All time over your standard part time regular workweek must be approved in advance by supervisors. Such hours must be tracked, approved and reported to ensure appropriate compensation.

Going forward, how will travel time affect my compensation?

In the usual situation, prior to commencement of the scheduled workday, where an employee commutes from home to work and, at the end of the day, from work to home, the time spent in ordinary transit is not compensable time.  Once the regularly scheduled workday begins, as a general rule, time spent by an employee in travel as part of his/her activities on behalf of Yale is compensable.

There are limited circumstances, however, when the time spent in transit from home to work or vice-versa may be compensable time.  For example, time spent traveling on a special one-day assignment to another city, performed at Yale’s behest, is generally compensable time, except for that portion of time that would constitute the employee’s usual travel to and from his/her worksite.
Example:  Employee’s ordinary commute time to and from his/her usual worksite is 30 minutes at the start and end of each day for which the employee is not compensated.  On one occasion, employee travels to Newark, New Jersey on business for an 8:00 A.M. meeting and returns home that evening at 7:00 P.M.  All the time is compensable less one hour that constitutes employee’s usual non-compensable travel time.

For overnight trips out-of-town (e.g., attendance at a conference at Yale’s behest), including hours on Saturdays, Sundays, and holidays, all time spent is compensable work time when it corresponds with the employee’s regular working hours.  Hours spent in travel outside of regular working hours as a passenger in a car, train, or airplane, etc., are not counted as compensable time.

Do employees need to receive advance approval to work overtime?

Yes, advance approval is required. However, each department has its own guidelines for overtime approval and employees must consult with their manager about the department’s policies.  Managers are responsible for ensuring that employees do not work overtime without their approval. 

Can budgetary considerations be a factor in determining whether I am allowed to work overtime hours?

Yes, managers have the discretion to determine the number of authorized overtime hours for full time employees (and hours beyond the standard workweek for part time employees).

What about compensatory time?

The DOL regulations do not allow overtime-eligible employees to receive compensatory time in lieu of overtime. 

Will employees have to fill out a timesheet?

Yes, in order for employees to be appropriately compensated, the University requires an accurate record of the employees’ hours on a weekly timesheet.