REG 01.25.15 – Compensatory Time for FLSA Exempt Employees

Authority: Issued by the Chancellor. Changes or exceptions to administrative regulations issued by the Chancellor may only be made by the Chancellor.

History: First Issued: October 9, 2009.

Additional References:
Fair Labor Standards Act (FLSA)

Contact Info: HR Classification & Compensation (919-515-7175)

1. Introduction

1.1 The Office of State Human Resources (OSHR) requires that the Chancellor establish a consistent practice with regard to compensatory time for employees whose positions are subject to the State Human Resources Act (SHRA) and exempt from the overtime provisions of the federal Fair Labor Standards Act (“FLSA Exempt”). In addition, the Chancellor has established the same practice with regard to compensatory time for employees whose positions are exempt from the State Human Resources Act (EHRA employees) and who are also FLSA Exempt. This regulation articulates the Chancellor’s decision concerning compensatory time for FLSA exempt employees (whether SHRA or EHRA employees).

2. Scope

2.1 This regulation applies to all FLSA-exempt employees.

3. Implementation

3.1 Unlike hourly-paid (FLSA “non-exempt”) employees, FLSA exempt employees are accountable for their performance outcomes, rather than for time worked. Employees (both EHRA and SHRA) whose positions are classified as “FLSA Exempt” do not earn compensatory time when they work more than forty hours in a work week.

3.2 Compensatory time is not to be accumulated, tracked, used, or paid out for FLSA-exempt employees, except as specifically mandated by state and/or UNC policies (such as UNC Policy 300.2.15, which requires overtime pay or equivalent compensatory time for some FLSA-exempt EHRA employees who are designated as mandatory during pandemic and communicable disease emergencies).

3.3 Most FLSA-exempt employees typically put in some time and effort beyond the university’s standard business hours in order to fulfill the generally-expected professional responsibilities of their positions. The university recognizes there may be situations where a work unit experiences extraordinary increases in work demand and where an FLSA exempt employee must commit exceptional time and effort beyond the employee’s regular work schedule. In such situations, managers may extend the opportunity for scheduling flexibility at other times that are mutually agreeable between the employee and the manager. Scheduling flexibility is just that, flexibility, and has no specific time or hour implications, entitlements, or tracking.