Iowa Admin. Code r. 875-220.6 - Payments for unused compensatory time
(1) Payments for
accrued compensatory time may be made at any time and shall be paid at the
regular rate earned by the employee at the time the employee receives such
payment.
(2) Upon termination of
employment, an employee shall be paid for unused compensatory time at a rate of
compensation not less than:
a. The average
regular rate received by the employee during the last three years of the
employee's employment, or
b. The
final regular rate received by the employee, whichever is
higher.
(3) The phrase
"last three years of employment" means the three-year period immediately prior
to termination. Where an employee's last three years of employment are not
continuous because of a break in service, the period of employment after the
break in service will be treated as new employment. However, a break in service
must have been intended to be permanent and any accrued compensatory time must
have been cashed out at the time of initial separation. Where the final period
of employment is less than three years, the average rate still must be
calculated based on the rate(s) in effect during the period.
Notes
29 CFR 553.27.
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