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eight -hour work day. Employees working greater than four hours but less than eight hours are <br />entitled to one (1) 20-minute break. <br />5.7 Overtime Compensation / Compensatory Time Off <br />Non-exempt, non -union employees will be paid overtime compensation for all hours worked in <br />excess of forty (40) hours per workweek at a rate of one and one-half times the regular rate of pay. <br />Paid holidays, vacation leave, compensatory time off, and sick leave are considered time worked <br />for the purposes of calculating overtime hours. No employee will be permitted to work overtime <br />without the prior approval of the applicable Depaitinent Head. <br />Overtime pay will not be paid for time not worked. Exempt employees, as defined by the Fair <br />Labor Standards Act, are not entitled to overtime pay, except as described in Section 5.4, <br />pertaining to exempt employees who also work in a non-exempt position within the City. <br />Non-exempt, non -union employees will be allowed to take compensatory time off in lieu of <br />receiving over time compensation. Compensatory time off is computed at a rate of one and one- <br />half times the hours worked in excess of the forty (40) hour work week. Accrued compensatory <br />time off shall not exceed 120 hours at any time. Once an employee has accrued 120 hours of <br />compensatory time off, compensation for additional hours worked must be paid in cash rather than <br />accrued as compensatory time off. <br />The City reserves the right to payout any compensatory time off hours in excess of 80 hours, as it <br />deems necessary. <br />The City allows employees to cash out up to a maximum 40 hours of compensatory time off <br />annually, to be paid out up to twice annually: January 1 through January 15, and November 1 <br />through November 15 of each year, totaling a maximum payout of 40 hours of compensatory time <br />off. Note: upon terminating employment with the City, all compensatory time off will be paid out <br />at 100% of the accrued balance. <br />For the purposes of calculating overtime, an employee using paid holidays, vacation leave, sick <br />leave, or compensatory time off is considered to be working. <br />Accrued compensatory time off may be used with prior approval from the employee's Department <br />Head or the Department Head's designee. Upon an employee's separation from the City, accrued <br />and unused compensatory time off will be paid out at the then -current hourly rate of pay. <br />For the purposes of computing overtime compensation and compensatory time, overtime hours <br />worked shall not be pyramided, compounded, or paid twice for the same hours worked. <br />5.8 Severance Pay <br />Severance pay, based on eligible unused Earned Sick and Safe Time (ESST) is available to <br />employees who have at least five (5) years of regular service with the City and resign "in good <br />standing". If the employee is terminated because of malfeasance in office, gross misconduct, <br />conviction of a felony, or conviction for an illegal act involving personal gain to the employee, the <br />employer shall have no obligation to pay the aforementioned severance pay. <br />241Page <br />