5.c) Amendment to Personnel Policies Regarding Overtime Pay Meeting Date: 2/6/2008
Agenda Item: � � �
City Council Agenda Report
City of Scandia
14727 209`� St.North
Scandia, MN 55073 (651)433-2274
Action Requested: Review a proposed amendment to personnel policies regarding
overtime pay, as requested by the Council at the January 15 meeting.
Deadline/Timeline: N/A
Background: • The personnel policy provides for time and one-half pay for all
hours worked over 40 in one workweek for non-exempt
employees. Paid time off,sick leave, compensatory time off,
funeral leave and paid holidays do not count toward"hours
worked."
• Recently an issue arose regarding overtime pay for the
Maintenance Supervisor,who was paid straight time for 2'/Z hours
of compensatory time off taken during a work week when he also
worked overtime.
• The previous personnel policy did not address this issue.
Language was included in the new policy adopted in June to avoid
a potential abuse of the policy. An employee could potentially
take vacation or sick leave du.ring the work week to receive
overtime pay for less than 40 hours of work.
• The new policy does include a provision ensuring time and one-
half pay for any hours worked on a holiday,regardless of the
hours worked in a week, and also allows the employee to take the
holiday time on another day.
• The previous policy also provided for overtime pay for any work
on weekends. The new policy gives the city more flexibility for
setting schedules. Particulaz projects or events may make
changing schedules desirable for both the city and employees.
And, if budgets are tight it may be necessary to change schedules
to minimize costs.
• At the January 15 meeting,the Council discussed the policy and
asked staff to draft an amendment showing possible changes to the
sections on holiday and overtime pay.
Recommendation: The draft resolution, attached, shows an amendment that would:
1. allow paid holidays and up to 4 hours of compensatory time
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O1/31/08
off in one workweek to count toward"hours worked"for the
purpose of calculating overtime compensation, and
2. remove the language allowing an employee working on a
holiday to take that time off on an alternate date.
This change would limit the number of hours of paid time off counting
as hours worked. I believe some limit is needed to avoid any actual or
perceived abuse of the policy to increase employee compensation, and
therefore city costs, for the 40-hour workweek.
The second change, to the"holidays"section of the policy, is
recommended if paid holidays are counted as work time. Hours
worked on a holiday are automatically paid at time and one half,
regardless of how many hours are worked in the week. Employees
may also take a day off at a later date. If holidays are also counted as
work hours,the city would then potentially incur overtime pay costs
for other days during holiday weeks that would have been paid as
straight-time under the current policy. The change to the holiday
language would help offset that potential additional cost to the city.
I discussed this compromise with the Maintenance Supervisor. It
appears that he would not favor any specific limits on counting time
off as hours worked. The draft was also shared with the Council
members of the Human Resources Committee(Peterson and Crum.)
Attachments/ • Draft Resolution 02-06-08-02, amending Resolution 06-19-07-01
Materials provided: Establishing Employee Leave,Work Hours and Overtime Policies
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(overtime policy draft)
Page 2 of 2
O1/31/08
CITY OF SCANDIA
RESOLUTION NO.: 02-06-08-02
RESOLUTION ESTABLISHING EMPLOYEE LEAVE,WORK HOURS
AND OVERTIME POLICIES
WHEREAS, the Scandia City Council adopted Resolution 06-10-07-01,
establishing employee leave, work hours and overtime policies; and
WHEREAS,amendments to that policy are now necessary;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY
COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY,
MINNESOTA, that it should and hereby does adopt the attached "Employee Lea.ve,
Work Hours and Overtime Policies" as amended, said policy taking precedence over any
other policy that may have been established in the past that may be in conflict.
Adopted by the Scandia City Council this 6th day of February,2008.
Dennis D. Seefeldt,Mayor
ATTEST:
Administrator/City Clerk
Resolution No.:02-06-08-02 �
City of Scandia, Minnesota
Employee Leave, Work Hours and Overtime Policies
Adopted June 19,2007 and Amended Februarv 2,2008
1. EMPLOYEE LEAVE
a) Paid Time Off(PTO)
1) Paid Time Off shall accrue according to the following schedule for regular
full-time employees:
PTO Hours
Completed Years of Accrued per Pay PTO Hours PTO Days(8 hr.)
Em lo ent Period Accrued er Year Accrued er Year
0— 1 5.5 132 16.5
2—4 7 168 21
5—9 8 192 24
10— 14 9 216 27
15+ 10 240 30
2) The City Council may establish higher levels of annual leave accrual for an
employee at the time of hiring if such authorization serves a public purpose.
Such accruals shall never exceed the maximum allowed.
3) Regular part-time employees sha11 accrued PTO on a pro-rata basis if they are
scheduled to work 30 or more hours per week.
b) Administration of Paid Time Off(PTO)
1) An employee shall not have more than 480 hours of PTO accrued at any time
unless a written request has been submitted to and approved by the City
Administrator and the City Council.
2) Employees may not use PTO until it has been credited to the employee's bank
in the payroll system.
3) Probationary employees will accrue PTO and may use PTO as provided by
this policy,but shall not receive payment for unused PTO if the employee is
terminated during the probationary period.
4) Accumulated PTO cannot be transferred from one employee to another.
5) PTO shall not be earned by an employee during leaves of absence without pay
when such leaves are in excess of ten(10) consecutive working days. An
employee receiving either short term or long term disability insurance is
considered to be on leave without pay for the purposes of this section.
6) PTO will take two forms:
(a) planned time off which will be scheduled in advance with the
supervisor's approval;
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(b) unplanned time off which will require notification of the supervisor
within 30 minutes of the employee's scheduled work day if the employee
is not at work,or notification of the supervisor before leaving work.
7) PTO may be used in increments of one hour or more.
8) If unplanned time off shows a pattern suggesting abuse,the City
Administrator shall notify the employee of his/her concern. If such abuse
continues,the employee sha11 be warned in writing that such continued abuse
may be cause to deny future unplanned time off requests without a physician's
note.
9) Upon separation from employment,the unused balance of PTO shall be paid
to the employee at the pay rate the employee is earning at that time.
c) Transition—Employees Hired Prior to Adoption of PTO Policy
1) Vacation time shall be converted to Paid Time Off(PTO),one hour of PTO
for each hour of vacation time accrued.
2) Sick leave shall be placed in a"Sick Leave Bank".
(a) The Sick Leave Bank may be used in the case of an extended personal
illness or disability requiring more than twenty-four(24)hours of
continuous absence from work. The Sick Leave Bank may be used for
the twenty-fifth(25th) and subsequent hour(s) of absence.
(b) The City reserves the right to require a physician's statement indicating
the nature and length of the disability, and/or the ability of the employee
to return to work, for any absence for which the�employee requests use
of the Sick Leave Bank.
(c) No additional Sick Leave shall accrue, and balances shall not be
converted to any other form or thing of value at any time for any
purpose for any employee, except as may be provided by this policy.
(d) Full-time employees shall be entitled to payment for unused Sick Leave
Bank balances as severance pay upon retirement, death or resignation
only under the following conditions:
(a) He/she shall have an accumulation of at least sixty(60)days(480
hours)of sick leave.
(b) He/she shall have been employed by the city or township for ten(10)
years or more.
(c) Severance compensation shall be one-half of unused sick leave,but
shall in no event exceed $5,000.00.
(d) If payment of severance pay is made as a result of the death of an
employee,it shall be paid to his/her surviving spouse and if he/she
leaves no spouse surviving,to his/her estate.
d) Holidays
1) The City observes the following official holidays for all regular full-time and
part-time employees:
(a) New Year's Day(January 1)
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Resolution No.:02-06-08-02
(b) Martin Luther King, Jr. Day(Third Monday in January)
(c) President's Day(Third Monday in February)
(d) Memorial Day(Last Monday in May)
(e) Independence Day(July 4)
(fl Labor Day(First Monday in September)
(g) Columbus Day(Second Monday in October)
(h) Veteran's Day(November 11)
(i) Thanksgiving Day(Fourth Thursday in November)
(j) Friday after Thanksgiving Day
(k) Christmas Day(December 25)
2) Official holidays commence at the beginning of the first shift of the day on
which the holiday is observed and continue for twenty-four(24)hours
thereafter.
3) When a holiday fa11s on a Sunday,the following Monday will be the
"observed"holiday and when a holiday falls on a Saturday,the preceding
Friday will be the"observed"holiday for City operations/facilities that are
closed on holidays.
4) Full-time employees will receive pay for official holidays at their normal
straight time rates,provided they are on paid status on the last scheduled day
prior to the holiday and first scheduled day immediately after the holiday.
5) Part-time employees will not receive holiday pay,unless they are normally
scheduled to work at least 30 hours per week. Eligible part-time employees
will receive pro-rat�holiday pay based on the number of hours normally
scheduled.
6) Any employee on a leave of absence without pay from the City is not eligible
for holiday pay.
7) Non-exempt employees required to work on a holiday shall be paid time and
one-half their regular rate of pay.
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8) Employees wanting to observe holidays other than those officially observed
by the City may request either PTO or unpaid leave for such time off.
e) Bereavement/Funeral Leave
1) Funeral leave may be granted to full time City employees,or to part time
employees scheduled to work 30 hours or more per week. To be eligible for
funeral leave an employee must furnish adequate proof that a death has
occurred with the employee's immediate family.
2) The term "immediate family" shall include spouse,parents, step-pazents,
child, step-child, grandchild, step-grandchild,siblings and step-siblings of the
employee, or grandpazents of the employee or spouse,mother-in-law or
father-in-law. Relatives of the employee other than those above listed shall
not be considered members of the immediate family for the purposes of this
policy.
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3) Paid funeral leave may be granted for one, two or three work days where the
supervisor concludes such leave is warranted provided that no more than three
days (24 hours) of paid funeral leave per calendar year shall be allowed.
� Jury Duty
1) Regular full-time and part-time employees will be granted paid leaves of
absence for required jury duty. Such employees will be required to turn over
any compensation they receive for jury duty,minus mileage reimbursement,
to the City in order to receive their regular wages fpr the period. Time spent
on jury duty will not be counted as time worked in computing overtime.
2) Employees excused or released from jury duty during their regular working
hours will report to their regular work duties as soon as reasonably possible or
will take accrued vacation or compensatory time to make up the difference.
3) Employees are required to notify their supervisor as soon as possible after
receiving notice to report for jury duty. The employee will be responsible for
ensuring that a report of time spent on jury duty and pay form is completed by
the Clerk of Court so the City will be able to determine the amount of
compensation due for the period involved.
4) Temporary and seasonal employees are generally not eligible for
compensation for absences due to jury duty,but can take a leave without pay
subject to city administrator approval. However,if a temporary or seasonal
employee is classified as exempt,he/she will receive compensation for the
jury duty time.
g) Court Appearances
1) Employees will be paid their regular wage to testify in court for City-related
business. Any compensation received for court appearances(e.g. subpoena
fees) arising out of or in connection with City employment,minus mileage
reimbursement,must be turned over to the City.
h) Military Leave
1) State and federal laws provide protections and benefits to City employees who
are called to military service, whether in the reserves or on active duty. Such
employees are entitled to a leave of absence without loss of pay, seniority
status, efficiency rating, or benefits for the time the employee is engaged in
training or active service not exceeding a total of 15 days in any calendar year.
2) The leave of absence is only in the event the employee returns to employment
with the City as required upon being relieved from service,or is prevent�
from returning by physical or mental disability or other cause not the fault of
the employee, or is required by the proper authority to continue in military or
naval service beyond the fifteen(15) day paid leave of absence. Employees on
extended unpaid military leave will receive fifteen(15) days paid leave of
absence in each calendar year,not to exceed five years.
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Resolution No.:02-06-08-02 '
3) Where possible, notice is to be provided to the City at least ten(10)working
days in advance of the requested leave.
4) Employees returning from military service will be reemployed in the job that
they would have attained had they not been absent for military service and
with the same seniority, status and pay, as well as other rights and benefits
determined by seniority. Unpaid military leave will be considered hours
worked for the purpose of paid time off(PTO) accruals.
5) Eligibility for continuation of insurance coverage for employees on military
leave beyond fifteen(15) days will follow the same procedures as for any
employee on an unpaid leave of absence.
i) Leaves of Absence Without Pay
1) The City Administrator may, giving consideration to the needs of the City and
the ability of the remaining staff to accomplish work responsibilities,
authorize regular employees to be absent without pay for personal reasons for
a period or periods not to exceed a total of ten(10)working days in any
calendar year.
2) Requests for leave of absence without pay in excess of ten(10)days in a
calendar year must be submitted to and approved in advance by the City
Council. Employees shall request such leaves of absence without pay in
writing in advance of the date so desired indicating the reason(s) for absence,
the specific absence period and anticipated date of return to work.
3) Leaves of absence will not be given for the purpose of enabling any employee
to work for another employer or to engage in any form of self-employment.
Any employee who obtains a leave of absence by misrepresenting its purpose
shall be discharged.
4) While on approved leave of absence without pay exceeding ten consecutive
working days, an employee will not receive city contributions to city
sponsored insurance(s)in which he/she is a member or be eligible to accrue
PTO or holiday pay. Nor will the time on leave of absence without pay be
considered for purposes of calculating time in active service where the period
exceeds ten consecutive working days.
j) Parenting Leave
1) Employees who work twenty(20)hours or more per week and have been
employed more than one year are entitled to take an unpaid leave of absence
in connection with the birth or adoption of a child. The leave may not exceed
six weeks, and must begin within six(6)weeks after the birth or adoption of
the child.
2) Employees are not required to use accumulated PTO during Parenting Leave
but may do so at their option.
3) The employee is entitled to return to work in the same position and at the
same rate of pay the employee was receiving prior to commencement of the
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Resolution No.:02-06-08-02
leave. Any group insurance coverage in which the employee participates will
remain in effect during the six (6)week Parenting Leave.
k) Special Statutory Leaves
1) Any employee who works an average of(20 hours per week or more)may be
granted unpaid leave not to exceed 16 hours per 12 month period to attend
school conferences or school related activities related to the employee's child.
This leave shall be granted only if: a) such acdvities cannot be scheduled for
non-work time;b) the activities are scheduled to minimize work disruption;
and c)the supervisor is apprised of the request in advance(preferably one
week or more).
2) Any employee who works an average of 20 or more hours per week may be
granted a leave of absence to undergo a medical procedure to donate bone
marrow in accordance with applicable state law.
3) The policies in this section are general statements of federal and state statutes
and regulations. They are for information purposes only and are not meant to
increase or decrease the benefits actually available by statute.
4) The Employee must comply with all requirements for fumishing information
as outlined in the statutes.
2. WORK HOURS AND OVERTIME
a) General Working Hours
1) Work schedules for employees will be established by the City Administrator.
The regular work week for full-time employees is five eight-hour days in
addition to a lunch period,Monday through Friday. Part-time employees shall
maintain such hours in accordance with the customs and needs of the
department, as approved by the City Administrator.
2) Office hours for the city office are 9:00 a.m. to 12:00 naon and 1:00 p.m. to
4:00 p.m., Monday through Friday. Public Works Department hours are 7:00
a.m. to 3:30 p.m. Monday through Friday.
3) Regular work schedules and/or office hours may be changed by the City
Administrator with written notice at least one week in advance to the affected
employee(s.)
b) Meal Breaks and Rest Periods
1) A paid fifteen (15)minute paid break is allowed within each four(4)
consecutive hours of work. An unpaid thirty(30)minute lunch period is
provided when an employee works eight or more consecutive hours.
2) Employees working in City buildings will normally take their break at an
appropriate place for that purpose in each building. Employees working out-
of-doors will normally take their break at the location of their work.
Employees whose duties involve traveling throughout the City may stop along
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Resolution No.:02-06-08-02
the assigned route at a restaurant or other public accommodation for their
fifteen(15)minute break. Exceptions may be approved by the supervisor or
City Administrator.
3) Depaztments with unique job or coverage requirements may have additional
rules, issued by the supervisor and subject to approval of the City
administrator, on the use of ineal breaks and rest periods.
c) Adverse Weather Conditions
1) City facilities will generally be open during adverse weather. Due to
individual circumstances, each employee will have to evaluate the weather
and road conditions in deciding to report to work or leave early. Employees
will be allowed to use accrued PTO or compensatory time,or with supervisor
approval may modify the work schedule or make other reasonable schedule
adjustments.
2) Public works maintenance employees will generally be required to report to
work regardless of conditions.
d) Emergency Work/Callbacks
1) A non-exempt, over-time eligible employee who is called in to work after
hours will be paid for a minimum of two hours.
e) Overtime/Compensatory Time
1) The City has established this overtime policy to comply with applicable state
and federal laws governing accrual and use of overtime. The City
Administrator will determine whether each employee is designated as
"exempt"or"non-exempt"from earning overtime pay.
2) Employees may be required to work overtime as a condition of continued
employment. Refusal to work overtime may result in disciplinary action.
Supervisors will make reasonable efforts to balance the personal needs of their
employees when assigning overtime work.
3) Non-Exempt(overtime-eligible)Employees:
(a) All overtime-eligible employees will be compensated at the rate of time
and one-half for all hours worked over 40 in one workweek. Paid time
oi�, sick leave, , and funeral leave�
��do not count toward"hours worked". Paid holidavs, and up to 4
hours of com�ensatorv time off in one workweek, shall count toward
"hours worked"for the�urpose of calculating overtime comuensation.
(b) The workweek begins at midnight on Sunday and runs until the
following Saturday night at 11:59 p.m.
(c) Compensation will take the form of either time and one-half pay or
compensatory time. Compensatory time is paid time off at the rate of
one and one-half hours off for each hour of overtime worked.
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• Resolution No.:02-06-08-02
(d) The employee's supervisor must approve overtime hours in advance. An
employee who works overtime without prior approval may be subject to
disciplinary action.
(e) Overtime earned will be paid at the rate of time and one-half on the next
regularly scheduled payroll date,unless the employee indicates on
his/her timecard that the overtime earned is to be recorded as
compensatory time in lieu of payment.
(� The maximum compensatory time earned for any employee is eighty
(80)hours per calendar year. All further overtime will be paid.
Employees may request and use compensatory time off in the same
manner as other leave requests.
(g) All compensatory time will be mazked as such on official time cards,
both when it is earned and when it is used. All unused compensatory
time accrued will be paid when the employee leaves city employment at
the hourly pay rate the employee is earning at that time.
4) Exempt(non-overtime-eligible) Employees
(a) Exempt employees aze expected to work the hours necessary to meet the
performance expectations for their positions. Generally,to meet these
expectations, and for reasons of public accountability, an exempt
employee will need to work 40 or more hours per week. Exempt
employees do not receive extra pay for the hours worked over 40 in one
workweek. This includes norma.l work hours, evening meetings andlor
on-call hours as necessary.
(b) In recognition for working extra hours,these employees may take some
time off during their normal working hours,with supervisor approval.
The time off for extra hours will not be on a one-for-one basis.
(c) Exempt employees are required to use paid time off when on personal
business or away from the office for four(4)hours or more,on a regular
work day. Absences of less than four(4)hours may not require use of
paid leave if the staff inember regularly puts in work hours above and
beyond the normal work hours.
(d) If an exempt employee regularly absents themselves from work under this
policy and it is found that there is excessive time away from work which is
not justified,the situation will be handled as a performance issue.
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