Agenda - Council Work Session - 11/25/2025

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5.7 Overtime Compensation / Compensatory Time Off Non-exempt, non -union employees will be paid overtime compensation for all hours worked in excess of forty (40) hours per workweek at a rate of one and one-half times the regular rate of pay. Paid holidays, vacation leave, compensatory time off, and sick leave are considered time worked for the purposes of calculating overtime hours. No employee will be permitted to work overtime without the prior approval of the applicable Department Head. Overtime pay will not be paid for time not worked. Exempt employees, as defined by the Fair Labor Standards Act, are not entitled to overtime pay, except as described in Section 5.4, pertaining to exempt employees who also work in a non-exempt position within the City. Non-exempt, non -union employees will be allowed to take compensatory time off in lieu of receiving over time compensation. Compensatory time off is computed at a rate of one and one- half times the hours worked in excess of the forty (40) hour work week. Accrued compensatory time off shall not exceed 120 hours at any time. Once an employee has accrued 120 hours of compensatory time off, compensation for additional hours worked must be paid in cash rather than accrued as compensatory time off. The City reserves the right to payout any compensatory time off hours in excess of 80 hours, as it deems necessary. The City allows employees to cash out up to a maximum 40 hours of compensatory time off annually, to be paid out up to twice annually: January 1 through January 15, and November 1 through November 15 of each year, totaling a maximum payout of 40 hours of compensatory time off. Note: upon terminating employment with the City, all compensatory time off will be paid out at 100% of the accrued balance. For the purposes of calculating overtime, an employee using paid holidays, vacation leave, sick leave, or compensatory time off is considered to be working. Accrued compensatory time off may be used with prior approval from the employee's Department Head or the Department Head's designee. Upon an employee's separation from the City, accrued and unused compensatory time off will be paid out at the then -current hourly rate of pay. For the purposes of computing overtime compensation and compensatory time, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. 5.8 Severance Pay Severance pay, based on eligible unused Earned Sick and Safe Time (ESST) is available to employees who have at least five (5) years of regular service with the City and resign "in good standing". If the employee is terminated because of malfeasance in office, gross misconduct, conviction of a felony, or conviction for an illegal act involving personal gain to the employee, the employer shall have no obligation to pay the aforementioned severance pay. 27