Compensatory time is leave credit earned by an exempt or
non-exempt employee when hours are worked beyond their regular schedule and not
compensated in cash. Compensatory time is generally accrued on a weekly basis.
The Commissioner shall establish policy and procedures to include the
following:
(1) Use of Compensatory
Time. The use of compensatory time is subject to the approval of the Appointing
Authority or a designated manager in the same manner as annual leave. An
employee who has accrued compensatory time and requests use of that time shall
be permitted to use such time off within a reasonable period after making the
request. When a request for compensatory time off is received, it shall be
honored unless to do so would be unduly disruptive to the agency's operations.
Mere inconvenience is an insufficient basis for denial. An agency should
reasonably and in good faith anticipate that the employee's request would
impose an unreasonable burden on the agency's ability to provide services of
acceptable quality and quantity for the public during the time requested
without the use of the employee's services.
A "reasonable period" shall be determined by considering the
customary work practices within the agency based on the facts and circumstances
in each case. Such practices include, but are not limited to, the
following:
(a) the normal schedule of
work,
(b) anticipated peak
workloads based on past experience,
(c) emergency requirements for staff and
services, and
(d) the availability
of qualified substitute staff.
The use of compensatory time in lieu of cash payment for
overtime by non-exempt employees shall be pursuant to some form of agreement or
understanding between the employer and the employee (or the representative of
the employee) reached prior to the performance of the work.
(2) Compensatory Time
Transferable. An employee's compensatory time shall be transferred between
state service agencies. If an employee in a state service agency transfers to
another state agency outside the state service which does not accept the
employee's compensatory time balance, the state service agency shall compensate
the transferring employee for the value of the employee's compensatory time
balance. The value of the compensatory time accrued by an exempt employee is
calculated based on the employee's regular hourly rate in the state service
agency at the time of transfer.
(3)
Use of Compensatory Time Before Annual Leave. Accumulated compensatory time
shall be used before annual leave unless an employee's accumulated annual leave
balance is within two (2) days of the maximum accrual allowed for the employee
as provided in these Rules.
(4)
Payment of Compensatory Time at Separation. Generally, an agency shall make a
lump sum payment for accrued compensatory time when an employee separates from
state service. If, however, a retiring employee requests terminal leave, that
employee shall use accrued compensatory time prior to terminal leave. Terminal
leave is the annual leave balance of a retiring employee. Any annual leave
balance remaining after the employee's last working day is considered terminal
leave.
(5) Amount Earned and
Maximum Accumulation. Non-public safety employees who are non-exempt may
accumulate a maximum of two hundred and forty (240) hours of premium
compensatory overtime. Public safety employees who are non-exempt may
accumulate a maximum of four hundred and eighty (480) hours of premium
compensatory overtime. Totals for regular and premium compensatory overtime
shall be added together and no employee shall be allowed to exceed a total
accumulation of both regular and/or premium compensatory overtime over four
hundred and eighty (480) hours. Any variation to this maximum accrual limit
shall be approved in advance by the Commissioner and the Commissioner of
Finance and Administration.
Any exempt or non-exempt employee who earns authorized overtime
credit in excess of the maximum accrual shall be paid cash for those hours on
an hour-for-hour basis unless the Fair Labor Standards Act requires payment at
a premium rate.
Non-exempt employees are permitted to receive premium (time and
one-half) compensatory overtime in lieu of premium cash overtime if the agency
lacks the necessary funds or if the employee requests compensatory time instead
of cash and the Appointing Authority approves the request. Premium compensatory
overtime occurs when a non-exempt employee, who is authorized to receive
compensatory overtime in lieu of cash, physically works more than forty hours
(40) during a work week. The employee shall be compensated at one and half
times the hours actually worked above forty (40).
Notes
Tenn. Comp. R. & Regs.
1120-06-.05
(For history prior to
January 2, 1988 see pages 1-2 of the Introduction at the beginning of the
chapters.) Repeal and new rule filed November 18, 1987; effective January 2,
1988. Repeal and new rule filed December 14, 2010; effective May 31, 2011.
Repeal and new rule filed July 5, 2012; effective October 3,
2012.
Authority: T.C.A. §§
8-23-201,
8-30-104,
8-30-105,
8-30-406,
8-50-801, and
29 U.S.C. §
201, et seq.
