Research Corporation of the University of Hawaiʻi

Research Corporation
of the University of Hawai‘i
3.340 RCUH Overtime Compensation
I. Policy
It is the RCUH’s policy to ensure compliance with the overtime provisions of the United States Department of Labor’s Fair Labor Standards Act.
Overtime compensation is paid to non-exempt-status employees who record work and paid compensation time in excess of 40 hours in a workweek.
II. Responsibilities
A. RCUH Employee
1. Comply with payroll/timekeeping procedures set forth by the Principal Investigator/designee. Requests to work overtime must be submitted to the Principal Investigator prior to working the overtime hours.
2. Complete and certify own timesheet, including any overtime work, as required by project’s guidelines and in accordance with the related policies described below.
3. Submit completed timesheet to Principal Investigator/designee by the established project-specific payroll deadline for each pay period.
B. Principal Investigator
1. Ensure payroll/timekeeping procedures are defined and are clearly communicated to each employee, including requests to work overtime hours. Enforce and monitor these procedures.
2. Ensure all paper timesheets are collected, and review that all work time, including overtime, and leaves are reported accurately by the employee.
3. Submit RCUH Online Timesheets via the RCUH Human Resources Portal by the established RCUH 12:00 noon deadline on payroll deadline days (see RCUH Human Resources Personnel Action/Payroll Calendar).
III. Applications
This policy applies to all salaried and hourly non-exempt status employees. This policy also provides guidance to Principal Investigators/designees who employ non-exempt individuals through RCUH.
IV. Details of Policy
A. When Overtime Compensation Must Be Paid – Overtime compensation is paid for time worked in excess of 40 compensable hours (worked and paid) in a workweek.

Refer to Policy 3.262 Work Schedule, Work Week, Work Hours for the definition of a workweek. All paid leave hours, such as vacation, sick, holiday, funeral leave, etc., are included as part of the 40 hours.
Example: A non-exempt employee records the following time:
The employee is paid for 20 regular hours, 20 hours of sick leave, and 2 hours of overtime for the week.
B. How Overtime Compensation Is Calculated
1. Overtime compensation is paid at one and one-half (11⁄2) times the employee’s base straight-time rate of pay.
a. For hourly employees: The employee’s base straight-time rate of pay is their hourly pay rate.
b. For salaried employees: The employee’s base straight-time rate of pay is their annualized hourly rate.
2. The end of a pay period (from the 1st to the 15th, or from the 16th to the end of the month) does not affect how overtime hours are calculated. If in the same workweek, hours paid in the previous pay period are counted towards the 40 hours.
C. Overtime Must Be Requested and Approved by the Principal Investigator/Designee – All requests for overtime worked must be requested and approved by the Principal Investigator/designee, before commencing with overtime work.
V. Procedures
A. Procedures for an Employee Engaging in Overtime Work
1. Comply With Project Payroll Procedures/Deadlines: Employees eligible for overtime should be aware of the project’s procedures for overtime.
2. Employees Must Obtain Approval to Work Overtime: Employees must obtain prior approval from an authorized person on the project before commencing with overtime work.
3. Notate Overtime Hours on Time Report: Employees who have earned overtime hours are responsible for reporting the overtime on the RCUH Employee Time/Leave Certification form or other approved timesheet. On the RCUH Employee Time/Leave Certification form, overtime hours should be recorded in the “OT Hrs” column on the day that the overtime is earned (after 40 compensable hours in the workweek).
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Off
12 hours work
10 hours sick leave
10 hours sick leave
10 hours work
Off
Off

4. Verify Accuracy of Pay Statement(s): Employees who have earned overtime hours are responsible for verifying payments on their online pay statement to ensure they have been paid correctly. Any discrepancies in overtime payment should be brought to the attention of their supervisors immediately.
B. Procedures for a Principal Investigator/Designee Who Has an Employee Engaging in Overtime Work
1. Define and Communicate Payroll/Time-Reporting Procedures: Principal Investigator/designee must define and clearly communicate internal payroll and time-reporting procedures to each employee. Instructions for non-exempt employees specifying how to request overtime, who is authorized to approve overtime, how overtime is enforced (for example, does a supervisor need to be present when employees work overtime, is overtime only allowed on certain days or times, etc.) should be documented in writing as part of the project’s procedures.
2. Utilize an Overtime Request/Authorization Form: It is highly recommended that a written overtime form be utilized by eligible employees to request overtime work. The form should be approved by the employee’s supervisor, or an authorized project staff person, prior to the employee’s working the overtime. The RCUH Overtime Authorization Form, or any similar form designated by the project, may be used for this purpose.
3. Track and Monitor Overtime Compensation: Principal Investigators should implement a mechanism for tracking overtime for documentation purposes as well as to substantiate additional payroll costs to sponsors and other fiscal entities.
4. Ensure Overtime Hours Are Recorded Correctly on Time Report: Principal Investigators/designees should ensure that eligible employees are reporting overtime correctly on the time report.
5. Record Work Hours on RCUH Online Timesheets in Human Resources Portal: Overtime hours should be recorded in the “OT Hrs” column on the Pay Earnings tab of the RCUH Online Timesheets.
For hourly employees, the RCUH Online Timesheet will move the appropriate number of hours from the “PP Hrs” column to the “OT Hrs” column automatically. A message will appear notifying the user of the change.
For non-exempt salaried employees, the user must manually enter the overtime hours in the “OT Hrs” column of the RCUH Online Timesheet.
The “OT Hrs” column is not available for exempt salaried employees on the RCUH Online Timesheet.
VI. Contact
Jo Ann Yamamoto, Payroll Operations Manager: (808) 956-7239
[email protected]

VII. Relevant Documents
RCUH Overtime Authorization Form
Employee Time/Leave Certification Form
Policy 3.262 Work Schedule, Work Week, Work Hours
Date Revised: 4/25/17