AAM 270. COMPENSATION - Alaska

1 Alaska Administrative Manual Payroll COMPENSATION aam 270 . COMPENSATION Workweek Defined 05/98 Holiday Pay 07/09 COMPENSATION for Hours Worked on a Holiday 05/98 Overtime Authority 05/98 Overtime Eligibility 07/09 Authorizing Overtime 05/98 Overtime Retroactivity 05/98 Additional Straight Time 07/09 Pyramiding of Overtime Hours 05/98 Overtime Authorization - Commissioner of 05/98 Administration Swing and Graveyard Shift Differentials 04/11 Overtime Pay and Shift Differentials 04/11 Shift Differentials - Paid Leave and Holidays 05/98 Premium Pay 05/98 Office Closures and COMPENSATION 01/13 Final Pay 07/04 Payments to Deceased

2 Employee's Beneficiary 05/98 Pay in Lieu of Notice 04/10 Terminal Leave Payment 05/98 Cancellation of Accrued Leave 05/98 Repayment of Terminal Leave 05/98 Workers' COMPENSATION Benefits 01/13 Workers' COMPENSATION for PSEA Members 05/98 Pay Shortages 05/98 Penalty Pay 05/98 COMPENSATION While on Court Leave 05/98 Missing Persons 05/98 COMPENSATION Paid to Members of Boards 01/09 and Commissions AAM Workweek Defined As provided in Personnel Rule 2 AAC , the standard workweek consists of the number of hours from Sunday midnight to Sunday midnight, with exceptions for holidays, applicable for the majority of Alaska Administrative Manual Payroll COMPENSATION employees whose work hours are established pursuant to a collective bargaining agreement under AS The standard workweek consists of hours in pay status (hours of work, paid leave, and paid holidays) for full-time employees in the classified and partially exempt services.

3 Some collective bargaining agreements provide for workweek schedules that require 40 hours in pay status each week. Alternate workweek schedules such as week on, week off or alternating Fridays off must be documented in labor union contracts, in a letter of agreement or understanding, or some other appropriate record. AAM Holiday Pay (07-09) Holidays for most employees are enumerated in Personnel Rule 2 AAC : New Year s Day the first of January Martin Luther King Jr. s Birthday the third Monday of January President s Day the third Monday in February Seward s Day the last Monday in March Memorial Day the last Monday in May Independence Day the fourth of July Labor Day the first Monday in Sept.

4 Alaska Day the eighteenth of October Veterans Day the eleventh of November Thanksgiving Day the fourth Thursday in Nov. Christmas Day the twenty-fifth of December Every day designated by public proclamation by the President of the United States as a national holiday or by the governor of the State as a legal holiday. The personnel rule further provides when a holiday falls on a Sunday, the following Monday is observed (a day off with pay) as the holiday. When a holiday falls on a Saturday, the preceding Friday is observed as a holiday. If all employees are directed to work on a day designated as a holiday, an additional day of personal or annual leave is credited to their leave accounts.

5 All employees may not be directed to work on New Year s Day, Independence Day, Labor Day, Thanksgiving Day, or Christmas Day. General state policies related to holiday pay include: Employees on leave-without-pay for the full day before or the full day following a holiday are on leave-without-pay for the holiday and not eligible for holiday pay, unless they actually work on the designated holiday. Employees who work on a designated holiday are in pay status Alaska Administrative Manual Payroll COMPENSATION that day and are therefore eligible for holiday pay, in addition to the appropriate COMPENSATION for working that day.

6 Refer to AAM COMPENSATION for Hours Worked on a Holiday, for additional information. Personal, sick, or annual leave is not charged for holidays falling within a period of paid leave. Holidays are considered time in pay status for purposes of fulfilling workweek requirements. Refer to collective bargaining agreements for additional holiday provisions for employees. AAM COMPENSATION for Hours Worked on a Holiday COMPENSATION provisions for hours worked on a holiday by covered employees are established by collective bargaining agreements. COMPENSATION for all other employees must be paid in compliance with personnel rules.

7 AAM Overtime Authority Overtime COMPENSATION policies are issued pursuant to Personnel Rule 2 AAC The rule states that overtime eligibility and entitlements must be in accordance with the Fair Labor Standards Act (FLSA) unless provided for elsewhere in the regulations. The rule further states all hours worked by an overtime eligible employee in excess of 40 hours worked in a workweek are overtime and will be paid at the rate of one and one-half times the appropriate hourly rate of pay. Collective bargaining agreements further define overtime eligibility and entitlements. When there is a difference between a collective bargaining agreement and the FLSA, the more generous provision applies.

8 AAM Overtime Eligibility (07-09) Eligibility for overtime COMPENSATION is determined by the Fair Labor Standards Act of 1938, As Amended (FLSA). Note: Some exceptions have been negotiated through the collective bargaining process. The Department of Administration, Division of Personnel and Labor Relations, is responsible for final decisions on overtime eligibility. These determinations are based on the application of collective bargaining agreement provisions, the FLSA, and the regulations defining and Alaska Administrative Manual Payroll COMPENSATION delimiting the exemptions for executive, administrative, professional, outside sales, and computer employees in Title 29, Part 541 of the Code of Federal Regulations (CFR).

9 Most of the state s overtime exempt employees are ineligible based on the FLSA rules for exemption as executive, administrative, professional, or computer employees. Under the general rule for executive employees the term employed in a bona fide executive capacity means an employee: 1. compensated on a salary basis at a rate not less than $455 per week exclusive of board, lodging, or other facilities; 2. whose primary duty is management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof; 3. who customarily and regularly directs the work of two or more other employees; and 4.

10 Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees are given particular weight. Under the general rule for administrative employees the term employed in a bona fide administrative capacity means an employee: 1. compensated on a salary basis at a rate not less than $455 per week exclusive of board, lodging, or other facilities; 2. whose primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer s customers; and 3.