**BONNEVILLE POWER ADMINISTRATION**

**HUMAN CAPITAL MANAGEMENT**

**Portland, Oregon**

**PERSONNEL LETTER NO. 551-1 (Revised) DATE:** October 17, 2007

**SUBJECT:** Fair Labor Standards Act (FLSA)

## PURPOSE  {#purpose .unnumbered}

This Personnel Letter-

-   Provides information and guidance on the application of the Fair
    Labor Standards Act (FLSA).

-   Incorporates the most recent regulatory changes issued by the Office
    of Personnel Management (OPM). This includes the requirement that
    any employee whose annual rate of basic pay is less than \$23,660 is
    treated as nonexempt, with certain exceptions discussed in 5 CFR
    Part 551. These regulatory revisions are effective October 17, 2007.

-   Supersedes Personnel Letter 551-1 dated June, 2005.

**POLICY SUMMARY**[]{#__RefHeading___Toc180290541 .anchor}

This policy describes the provisions of FLSA and its time limits for
using compensatory time off earned in lieu of overtime pay and other
miscellaneous rules for annual employees covered by the FLSA and
Personnel Letter 550-1. Employees are entitled to whichever overtime
provision provides the greatest total pay for the workweek in which the
overtime occurs.

Table of Contents

[**PURPOSE 1**](#purpose)

[POLICY SUMMARY 1](#__RefHeading___Toc180290541)

[I. DEFINITIONS 4](#definitions)

[II. EFFECT OF OTHER PAY RULES ON FLSA ENTITLEMENT
5](#__RefHeading___Toc180290543)

[III. DETERMINATION OF EXEMPT OR NON-EXEMPT STATUS
5](#__RefHeading___Toc180290544)

[IV. EXEMPTIONS CRITERIA 7](#__RefHeading___Toc180290545)

[V. COMPENSABLE DETERMINATIONS UNDER FLSA VERSUS 5 CFR PART 550
8](#compensable-determinations-under-flsa-versus-5-cfr-part-550)

[VI. OVERTIME\--HOURS CONSIDERED AS OVERTIME
8](#__RefHeading___Toc180290547)

[VII. WORK APPROVAL REQUIREMENTS 8](#__RefHeading___Toc180290548)

[VIII. APPLICABILITY OF MAXIMUM EARNING LIMITATIONS AND AGGREGAT
LIMITATION ON PAY 8](#__RefHeading___Toc180290549)

[IX. OVERTIME RATE OF PAY 9](#__RefHeading___Toc180290550)

[X. UNIT OF OVERTIME 9](#__RefHeading___Toc180290551)

[XI. NIGHT OR HOLIDAY PAY 9](#__RefHeading___Toc180290552)

[XII. TIME SPENT TRAVELING 9](#__RefHeading___Toc180290553)

[XIII. TIME SPENT IN TRAINING OR ATTENDING A LECTURE, MEETING, OR
CONFERENCE 10](#__RefHeading___Toc180290554)

[XIV. TIME SPENT ADJUSTING GRIEVANCES OR PERFORMING REPRESENTATIONAL
FUNCTIONS 11](#__RefHeading___Toc180290555)

[XV. TIME SPENT RECEIVING MADICAL ATTETION
12](#time-spent-receiving-medical-attention)

[XVI. TIME SPENT IN CHARITABLE ACTIVITIES
12](#time-spent-in-charitable-activities)

[XVII. TIME SPENT ON STANDBY DUTY OR IN AN ON CALL STATUS
12](#time-spent-on-standby-duty-or-in-an-on-call-status)

[XVIII. COMPENSATORY TIME FOR NON-EXEMPT ANNUAL EMPLOYEES
13](#compensatory-time-for-non-exempt-annual-employees)

[XIX. OVERTIME RULES APPLICABLE TO COMPENSATORY TIME FOR NON-EXEMPT
ANNUAL EMPLOYEES 13](#__RefHeading___Toc180290560)

[XX. RULES FOR USAGE FO COMPENSATORY TIME OFF
14](#rules-for-usage-of-compensatory-time-off)

[XXI. RELATION TO COMPENSATORY TIME FOR TRAVEL EARNED UNDER 5 CFR, PART
550, SUBPART N
14](#relation-to-compensatory-time-for-travel-earned-under-5-cfr-part-550-subpart-n)

[XXII. RECORD OF COMPENSATORY TIME 15](#record-of-compensatory-time)

[XXIII. FLSA COMPLAINTS 15](#flsa-complaints)

[XXIV. REFERENCES 15](#__RefHeading___Toc180290565)

# DEFINITIONS

> **Administrative Workweek**
>
> An administratively established period of 7 consecutive calendar days
> designated in advance, normally from 0000 hours Sunday to 0000 hours
> the following Sunday. (See Personnel Letter 610-5, Hours of Duty.)
>
> **Basic Rate of Pay**
>
> The rate of pay fixed by law or administrative action for the position
> held by the employee, including locality pay.
>
> **Basic Workweek**
>
> The regularly scheduled 40-hour workweek for full-time employees or
> the regularly scheduled 80-hour bi-weekly work schedule for full-time
> employees on a compressed work schedule. For part-time employees, the
> basic workweek is the hours specified in their current Standard Form
> 50, Notification of Personnel Action (SF 50).
>
> **Exempt Employees**
>
> Employees not covered by FLSA.
>
> **Hourly Regular Rate of Pay**
>
> Computed by dividing the total pay for all hours of actual work for
> the week (basic rate pay, including locality pay, night pay and
> environmental/hazard pay) by the total hours of actual work.
>
> **Non-exempt Employees**
>
> Employees covered by FLSA.
>
> **Premium Pay**
>
> Additional pay authorized for overtime, night work, holiday, Sunday
> work, and standby duty.
>
> **Regularly Scheduled Administrative Workweek**
>
> For full-time employees, the period within an administrative workweek
> when these employees are required to be on duty regularly. For
> part-time employees, the days and hours within an administrative
> workweek when these employees are required to be on duty regularly.
> The workweek used to administer pay under FLSA must be the same as
> those established to administer pay under Title 5 or under negotiated
> agreements.
>
> **Tour-of-Duty**
>
> The hours of a day (a daily tour of duty) and the days of an
> administrative workweek (weekly tour-of-duty) that constitutes an
> employee's regularly scheduled administrative workweek.
>
> **Workday**
>
> Daily tour-of-duty, whether it falls entirely within the same calendar
> day or not.

I.  **EFFECT OF OTHER PAY RULES ON FLSA
    ENTITLEMENT**[]{#__RefHeading___Toc180290543 .anchor}

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A.  To the extent that the FLSA is not consistent with other overtime
    rules, the employee is entitled to whichever overtime provision
    provides the greater total pay for the workweek in which the
    overtime occurs. Determinations of which overtime rule provides the
    greater benefit often require two computations for each week of the
    biweekly pay period.

B.  With respect to hours of duty and overtime entitlement rules, the
    provisions of this issuance are written in the context of an
    employee who is not working under a compressed work schedule
    authorized by 5 U.S.C. 6127. For employees who are working under a
    compressed work schedule, references to "eight (8) hours in a day"
    or "40 hours in a week" must be applied in the context of the
    established compressed work schedule and the laws and rules
    governing such schedules. Assistance can be obtained from the Human
    Capital Management (HCM) office.

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II. **DETERMINATION OF EXEMPT OR NON-EXEMPT
    STATUS**[]{#__RefHeading___Toc180290544 .anchor}

A. Principles:

> 1\. Each position is presumed to be FLSA nonexempt unless BPA
> correctly
>
> determines that a position clearly meets the requirements of one or
> more of the
>
> exemption criteria as identified below.
>
> 2\. Effect of performing different work or duties for a temporary
> period of time:

a.  Performing different work or duties for a temporary period of time
    may affect an employee's exemption status when an employee must
    perform work or duties that are not consistent with the employee's
    primary duties for an extended period (i.e., more than 30
    consecutive calendar days; see "30-day test" in OPM regulations.

b.  The exemption status of an employee temporarily performing different
    work or duties and meets the "30-day test" must be determined.

> 3\. An employee's exempt or non-exempt status is determined at the
> time the
>
> employee's position is established/classified by the servicing HCM
> Customer
>
> Service Representative and is shown on the SF-50, Notification of
> Personnel
>
> Action.

4.  OPM federal position classification and job grading standards, laws,
    and/or regulations do not control FLSA determinations, therefore,
    the use of grade levels in above examples of exempt/non-exempt
    criteria are for illustrative purposes only. The designation of an
    employee as FLSA exempt or nonexempt must ultimately rest on actual
    duties performed and not solely on the content of position
    descriptions and/or titles (i.e., do the duties of the position meet
    one or more of the exemption criteria).

> 5\. FLSA exemptions must be narrowly construed and applied only to
> employees
>
> who are clearly within the terms and spirit of the exemptions; and the
> burden of
>
> proof rests with BPA. Work exempt under one section will not defeat
> the
>
> exemption under any other section. BPA is responsible for showing
> [and]{.underline}
>
> documenting that the work as a whole clearly meets one or more of the
> exemption
>
> criteria.

6.  Reasonable doubt as to whether an employee meets the criteria for an
    exemption will result in the position being designated as FLSA
    nonexempt.

> The following guide simplifies the determination of employees' exempt
> or non-exempt status:

A.  [Employees **"EXEMPT"** from Coverage under the FLSA]{.underline}.

    1.  Automatic exemptions include: (a) all senior executive service,
        scientific and technical and executive service positions; (b)
        volunteers and people appointed under appropriate authority
        without compensation; and, (c) trainees that are not otherwise
        federal employees (a student officially appointed to a
        Government position is not a trainee for purposes of the FLSA).

    2.  All General Schedule (GS) and General Merit (GM) employees whose
        positions are determined to be "supervisory" or "managerial" by
        use of the General Schedule Supervisory Guide in positions at
        GS-7 and above.

> 3\. All annual (supervisory and non-supervisory) employees in
> positions at GS-11 and above with the exception of: Non-supervisory
> Pilots (GS-2181) in positions through GS-13.
>
> 4\. All annual (supervisory and non-supervisory) employees in
> positions at GS-9 and above in two-grade interval occupations.

5.  Team leaders who lead major projects and who function as an
    extension of management for matters of significance to the employer
    are likely to meet the administrative exemption.

> 6\. All Foreman IIIs (including Foreman III T) and Chief Substation
> Operator IIIs.
>
> [C. Employees **"NON-EXEMPT"** from Coverage under the
> FLSA]{.underline}.

1.  All annual employees in positions GS-4 and below.

2.  All annual non-supervisory employees in positions GS-5 through GS-10
    in

> one-grade interval occupations.

3.  All annual non-supervisory employees in positions at GS-5 and GS-7
    in

> two-grade interval occupations.

4.  General Schedule (GS) employees in positions at GS-5 and GS-6 whose
    positions are determined to be "supervisory" by use of the General
    Schedule Supervisory Guide are generally non-exempt. The percentage
    of time spent supervising/managing is not determinative of the
    primary duty question. An analysis of the overall duties of the
    position must be conducted to determine if supervision, regardless
    of the amount of time spent supervising, is the primary duty of the
    position. If so, the position is exempt.

5.  All non-supervisory pilots (GS-2181) in positions through GS-13.

6.  All hourly employees except Foremen IIIs (including Foreman III T),
    Chief Substation Operator IIIs, and some Foremen IIs. Foremen IIs
    are generally

> non-exempt. However, Foremen IIs whose primary duty is determined to
> be
>
> supervision, regardless of the percentage of work time in a
> representative
>
> workweek spent performing this function, are exempt.

III. **EXEMPTIONS CRITERIA**[]{#__RefHeading___Toc180290545 .anchor}

### Executive exemption: An employee whose primary duty is management of a Federal agency or any subdivision and who: (a) customarily and regularly directs the work of two or more other employees; and, (b) has 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.

B.  Administrative exemption: An employee whose primary duty is the
    performance of office or non-manual work directly related to the
    management or general business operations, as distinguished from
    production functions, of the employer or the employer's customers
    and whose primary duty includes the exercise or discretion and
    independent judgment with respect to matters of significance.

C.  Professional exemption: An employee whose primary duty must be the
    performance of work requiring knowledge of an advanced type in a
    field of science or learning customarily acquired by a prolonged
    course of specialized intellectual instruction or requiring
    invention, imagination, originality, or talent in a recognized field
    of artistic or creative endeavor. Criteria applicable to learned
    professionals, creative professionals, and computer employees are
    described in the professional exemption criteria.

##  COMPENSABLE DETERMINATIONS UNDER FLSA VERSUS 5 CFR PART 550 

> The table below summarizes the applicability of different rules
> contained both in this policy and in Personnel Letter 550-1 with
> respect to all forms of premium pay for both exempt and non-exempt
> annual employees.

+---------+--------------+-----------------+-------------+-----------+
| **FLSA  | ###          | **Comp. Time    | **Comp.     | **Other   |
| Cov     |   {#section  | (Under 5 CFR,   | Time (Under | Premium   |
| erage** | .unnumbered} | Part 550,       | 5 CFR, Part | Pay**     |
|         |              | Subpart A & 5   | 550,        |           |
|         | ###          | CFR, Part       | Subpart     |           |
|         | {#section-1  | 551)**          | N)**        |           |
|         | .unnumbered} |                 |             |           |
|         |              |                 |             |           |
|         | ### **Overti |                 |             |           |
|         | me Pay** {#o |                 |             |           |
|         | vertime-pay  |                 |             |           |
|         | .unnumbered} |                 |             |           |
+---------+--------------+-----------------+-------------+-----------+
| **E     | **Earned     | **Earned under  | **Earned    | **Earned  |
| xempt** | under Part   | Part 550,       | under Part  | under     |
|         | 550, Subpart | Subpart A rules | 550,        | Title     |
|         | A rules      | only**          | Subpart N   | Part 550, |
|         | only**       |                 | rules       | Subpart A |
|         |              |                 | only**      | rules     |
|         |              |                 |             | only**    |
+---------+--------------+-----------------+-------------+-----------+
| **Non-E | **Earned     | **Earned under  | **Earned    | **Earned  |
| xempt** | under Part   | Part 551 rules  | under Part  | under     |
|         | 550, Part A  | only**          | 550,        | Title     |
|         | rules, or    |                 | Subpart N   | Part 550, |
|         | Part 551     |                 | rules       | Subpart A |
|         | rules,       |                 | only**      | rules     |
|         | whichever    |                 |             | only**    |
|         | provides     |                 |             |           |
|         | greater pay  |                 |             |           |
|         | in a         |                 |             |           |
|         | workweek**   |                 |             |           |
+---------+--------------+-----------------+-------------+-----------+

IV. **OVERTIME\--HOURS CONSIDERED AS
    OVERTIME**[]{#__RefHeading___Toc180290547 .anchor}

    Under FLSA, overtime work is defined as work in excess of eight (8)
    hours in a day or 40 hours of actual work in the week.

V.  **WORK APPROVAL REQUIREMENTS**[]{#__RefHeading___Toc180290548
    .anchor}

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A.  Under 5 CFR, Part 550 regulations, overtime work has to be ordered
    or approved to be paid. Under FLSA, overtime is paid for work if it
    is either required by the BPA official with authority to approve
    such work or if it is allowed (suffered or permitted). Under the
    "suffer or permit" concept, any work performed prior to or after the
    established working hours or during the prescribed lunch period by a
    non-exempt employee, whether requested by the BPA official with the
    authority to authorize the work or not, is working time if the BPA
    official knows of or has reason to believe it is being performed

B.  Under Federal law, it is the duty of the BPA official with the
    authority to approve work to see to it that overtime work is not
    performed solely at the initiative of the employee. If an employee
    persists in performing overtime work against the express wish of the
    supervisor, disciplinary action may be taken.

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VI. **APPLICABILITY OF MAXIMUM EARNINGS LIMITATIONS AND AGGREGATE
    LIMITATION ON PAY**[]{#__RefHeading___Toc180290549 .anchor}

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A.  The maximum earnings limitation contained in 5 CFR Part 550, Subpart
    A does not apply to earnings under the FLSA. In no circumstance will
    the maximum earnings limitation of Title 5 serve to limit a
    non-exempt employee's entitlement to overtime pay under FLSA. In
    addition, FLSA overtime pay will not be considered in determining
    whether or not the maximum earnings limitation for pay under Title 5
    has been reached.

B.  Pay received under FLSA rules, including overtime pay, is subject to
    the bi-weekly and annual aggregate limitation on pay contained in 5
    CFR, Part 530.

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VII. **OVERTIME RATE OF PAY**[]{#__RefHeading___Toc180290550 .anchor}

     Under FLSA, overtime is paid at one and one-half times a non-exempt
     employee's hourly regular rate of pay. The regular rate of pay is
     computed by adding up payments made for all hours of actual work
     for the week and then dividing by the total hours of actual work.
     The following types of payments are included in the regular rate:

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A.  Scheduled rate (or basic rate plus other applicable rates within the
    crafts for negotiated pay);

B.  Night shift differential; and

C.  Environmental differentials/hazard pay.

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VIII. **UNIT OF OVERTIME**[]{#__RefHeading___Toc180290551 .anchor}

An employee must be paid for every minute of regularly scheduled
overtime work; therefore, this overtime will be scheduled and paid in
15-minute increments. Irregular, unscheduled overtime will be paid in
multiples of 15 minutes with work of seven (7) minutes or less
disregarded for pay purposes.

IX. **NIGHT OR HOLIDAY PAY**[]{#__RefHeading___Toc180290552 .anchor}

Hours of night or holiday work actually performed are included in
determining the total number of hours of employment in the same
administrative workweek for overtime pay purposes; however, night
differential pay or holiday pay received for periods of no work will not
be considered in computing the regular rate of pay under FLSA.

X.  **TIME SPENT TRAVELING**[]{#__RefHeading___Toc180290553 .anchor}

> **(Note: Time spent traveling that is not considered hours of work
> under the provisions below may be compensable under other authority.
> See Section XX.)**

A.  FLSA broadens travel entitlement to employees not exempt from the
    Act. Time spent traveling shall be considered hours of work if:

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1.  An employee is required to travel during regular working hours;

2.  An employee is required to drive a vehicle or perform other work
    while traveling;

3.  An employee is required to travel as a passenger on a one-day
    assignment away from the official duty station; or

4.  An employee is required to travel as a passenger on an overnight
    assignment away from the official duty station during hours on non
    workdays that correspond to the employee\'s regular working hours.

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B.  An employee who travels from home before the regular workday begins
    and returns home at the end of the workday is engaged in normal
    "home to work" travel; such travel is not hours of work. When an
    employee travels directly from home to a temporary duty location
    outside the limits of his or her official duty station, the time the
    employee would have spent in normal home to work travel shall be
    deducted from hours of work as specified in paragraphs A.2 and A.3
    of this section.

C.  An employee who is offered one mode of transportation, and who is
    permitted to use an alternative mode of transportation, or an
    employee who travels at a time other than that selected by the
    agency, shall be credited with the lesser of:

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1.  The actual travel time which is hours of work under this section; or

2.  The estimated travel time that would have been considered hours of
    work under this section had the employee used the mode of
    transportation offered by the agency, or traveled at the time
    selected by the agency.

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XI. **TIME SPENT IN TRAINING OR ATTENDING A LECTURE, MEETING, OR
    CONFERENCE**[]{#__RefHeading___Toc180290554 .anchor}

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A.  For employees not exempt from the FLSA, time spent in training shall
    be administered as follows:

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1.  Time spent in training during regular working hours shall be
    considered hours of work.

2.  Time spent in training outside regular working hours shall be
    considered hours of work if:

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a.  The employee is directed to participate in the training by his or
    her employing agency; and

b.  The purpose of the training is to improve the employee\'s
    performance of the duties and responsibilities of his or her current
    position.

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3.  Time spent in apprenticeship or other entry-level training, or
    internship or other career related work study training, or training
    under the Veterans Readjustment Act (5 CFR, Part 307) outside
    regular working hours shall not be considered hours of work,
    provided no productive work is performed during such periods.

4.  Time spent by an employee performing work for the agency during a
    period of training shall be considered hours of work.

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B.  The following phrases contained in paragraph A of this section, are
    further clarified:

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1.  **Directed to participate** means that the training is required by
    the agency and the employee\'s performance or continued retention in
    his or her current position will be adversely affected by
    non-enrollment in such training.

2.  Training **"to improve the employee\'s performance . . . of his or
    her current position"** is distinguished from upward mobility
    training or developmental training to provide an employee the
    knowledge or skills needed for a subsequent position in the same
    career field.

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C.  Time spent by an employee within an agency\'s allowance of
    preparation time for attendance at training shall be considered
    hours of work if such time is:

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1.  During an employee\'s regular working hours; or

2.  Outside the employee\'s regular working hours and the purpose of the
    training meets the requirements of paragraph A.2 of this section.

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D.  Time spent attending a lecture, meeting, or conference shall be
    considered hours of work if attendance is:

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1.  During an employee\'s regular working hours; or

2.  Outside an employee\'s regular working hours; and

#### The employee is directed by an agency to attend such an event; or

a.  The employee performs work for the benefit of the agency during such
    attendance.

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XIV. **TIME SPENT ADJUSTING GRIEVANCES OR PERFORMING REPRESENTATIONAL
     FUNCTIONS**[]{#__RefHeading___Toc180290555 .anchor}

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A.  Time spent by an employee adjusting his or her grievance (or any
    appealable action) with an agency during the time the employee is
    required to be on the agency\'s premises shall be considered hours
    of work.

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B.  "Official time" granted an employee by an agency to perform
    representational functions during those hours when the employee is
    otherwise in a duty status shall be considered hours of work. This
    includes time spent by an employee performing such functions during
    regular working hours (including regularly scheduled overtime
    hours), or during a period of irregular, unscheduled overtime work,
    provided an event arises incident to representational functions that
    must be dealt with during the irregular, unscheduled overtime
    period.

##### TIME SPENT RECEIVING MEDICAL ATTENTION

A.  Time spent waiting for and receiving medical attention for illness
    or injury shall be considered hours of work if:

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1.  The medical attention is required on a workday an employee reported
    for duty and subsequently became ill or was injured;

2.  The time spent receiving medical attention occurs during the
    employee\'s regular working hours; and

3.  The employee receives the medical attention on the agency\'s
    premises, or at the direction of the agency at a medical facility
    away from the agency\'s premises.

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B.  Time spent taking a physical examination that is required for the
    employee\'s continued employment with the agency shall be considered
    hours of work.

##### TIME SPENT IN CHARITABLE ACTIVITIES

> Time spent working for public or charitable purposes at an agency\'s
> request, or under an agency\'s direction or control, shall be
> considered hours of work. However, time spent voluntarily in such
> activities outside an employee\'s regular working hours is not hours
> of work.

##### TIME SPENT ON STANDBY DUTY OR IN AN ON-CALL STATUS

A.  An employee will be considered on duty and time spent on standby
    duty shall be considered hours of work if:

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1.  The employee is restricted to an agency\'s premises, or so close
    thereto that the employee cannot use the time effectively for his or
    her own purposes; or

2.  The employee, although not restricted to the agency\'s premises:

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a.  Is restricted to his or her living quarters or designated post of
    duty;

b.  Has his or her activities substantially limited; and

c.  Is required to remain in a state of readiness to perform work.

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B.  An employee will be considered off duty and time spent in an on-call
    status shall not be considered hours of work if:

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1.  The employee is allowed to leave a telephone number or to carry an
    electronic device for the purpose of being contacted, even though
    the employee is required to remain within a reasonable call-back
    radius; or

2.  The employee is allowed to make arrangements such that any work that
    may arise during the on-call period will be performed by another
    person.

# 

# COMPENSATORY TIME FOR NON-EXEMPT ANNUAL EMPLOYEES

> **(Note: The provisions for compensatory time described under this
> Section, as well as Section XVIII. and XIX. are separate from the
> rules addressed for compensatory time for travel authorized by 5 CFR,
> Part 550, Subpart N. See Section XX.)**

A.  **Relation to Overtime**: Compensatory time is an alternative to
    payment for overtime. Therefore, it can only be earned if the work
    is compensable as overtime. It is not possible to earn compensatory
    time for work that does not first qualify as overtime.

B.  **Request/Election to Earn Compensatory Time Off:** Subject to the
    conditions described in this issuance, an employee may request
    approval to earn compensatory time instead of pay for overtime. If
    compensatory time is permissible, BPA officials with the authority
    to approve paid overtime should normally approve requests for
    compensatory time in lieu of paid overtime. Please note that
    bargaining unit employees, depending on the provisions of the
    applicable bargaining agreement, may have the right to elect either
    form of compensation for work that is compensable under this
    issuance. Please refer to the appropriate bargaining agreement for
    information.

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XV. **OVERTIME RULES APPLICABLE TO COMPENSATORY TIME FOR NON-EXEMPT
    ANNUAL EMPLOYEES**[]{#__RefHeading___Toc180290560 .anchor}

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A.  An employee on flexi-schedule may earn compensatory time for
    irregular and occasional overtime, as well as for regularly
    scheduled overtime.

B.  An employee on a fixed schedule may earn compensatory time for
    irregular or occasional overtime, but not for regularly scheduled
    overtime.

C.  Compensatory time is earned in an amount equal to the overtime
    worked. It is authorized in lieu of overtime pay in the same manner
    as is prescribed for overtime. It is earned and used in multiples of
    1/4 hour.

D.  Time in travel status, which does not qualify for overtime, does not
    entitle the employee to compensatory time **(however, see
    Section XX. also)**.

E.  That part of callback time that is actually worked is creditable as
    compensatory time under the same conditions as overtime.

F.  The rules in section VII. apply to compensatory time off earned
    under FLSA.

# RULES FOR USAGE OF COMPENSATORY TIME OFF

A.  Compensatory time off earned under FLSA must be taken by the end of
    the 26th pay period after the pay period in which it was earned
    following the date on which overtime work was performed.

    A.  Employees must use compensatory time before using annual leave
        if, at the time of an absence, an employee's projected annual
        leave balance at the end of the leave year is less than or equal
        to 240 hours or their grand-fathered carry-over balance.

    B.  **Payment for Unused Compensatory Time Off:**

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1.  Under no circumstances can the value of the compensatory time for
    FLSA exempt employees be forfeited.

2.  If compensatory time off earned under FLSA is not requested or taken
    within the established time limits, the employee must be paid for
    overtime work at the overtime rate in effect on the date it was
    earned.

3.  Employees **must** be paid for any unused compensatory time earned
    under FLSA at the overtime rate in effect on the date it was earned
    by the end of the 26^th^ pay period after the pay period it was
    earned or if they separate from Federal service, transfer to another
    agency, or move to a position in the Department of Energy (DOE)
    outside of BPA.

    A.  **Undue Influence:** No employee may directly or indirectly
        intimidate, threaten, or coerce, or attempt to intimidate,
        threaten, or coerce any other employee for the purpose of
        interfering with such employee\'s rights to request or not to
        request compensatory time off in lieu of payment for overtime
        hours.

# RELATION TO COMPENSATORY TIME FOR TRAVEL EARNED UNDER 5 CFR, PART 550, SUBPART N

B.  The provisions in Section XI, Time Spent Traveling, and the
    provisions in Sections XVII. through XIX. addressing compensatory
    time are separate from the rules governing compensatory time for
    official travel earned under 5 CFR, Part 550, Subpart N (see
    Personnel Letter 550-1).

C.  In order to apply the correct rules to determine if travel time is
    compensable (either as overtime or compensatory time), use the
    following sequence:

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1.  First apply the rules in section XI. in this policy to determine if
    the travel time is compensable under FLSA rules. If so, apply the
    provisions of this policy including whether the time is to be
    recorded as overtime or compensatory time.

2.  If the travel time is not compensable under FLSA rules, refer to
    Personnel Letter 550-1 and determine if the time is compensable
    under the rules for Compensatory Time Off for Travel under 5 CFR,
    Part 550, Subpart N. If so, apply those rules to determine the
    amount of compensatory time earned and the manner in which its usage
    is governed.

# RECORD OF COMPENSATORY TIME

Employees are credited with compensatory time in the payroll records
based on entries on the Time and Labor Reports. BPA officials with the
authority to approve work and pay overtime are responsible for insuring
that the earning and use of compensatory time is recorded according to
BPA's time and labor reporting instructions.

# FLSA COMPLAINTS

A.  If an employee believes that his/her FLSA coverage status is
    incorrect or that BPA has violated any provisions of the Fair Labor
    Standards Act, he/she may file a complaint. An FLSA pay claim filed
    after June 30, 1994, is subject to the statute of limitations
    contained in the Portal-to-Portal Act of 1947, as amended (section
    255a of Title 29, United States Code), which imposes a two-year
    statute of limitations, except in cases of a willful violation where
    the statute of limitations is three years.

B.  Formal complaints should be addressed to the U.S. Office of
    Personnel Management,

> San Francisco Oversight Division, 120 Howard Street, Room 760, San
> Francisco, CA 94105-0001. Employees are encouraged, however, to seek
> informal resolution of their complaints through regular supervisory
> channels within BPA whenever possible.

C.  Further information regarding complaint content and processes may be
    obtained through any servicing HCM Specialist or, by direct
    reference to Title 5, CFR, Part 551, Pay Administration under the
    Fair Labor Standards Act, Subpart G, FLSA Claims and Compliance,
    Sections 551.701 through 551.710.

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XXII. **REFERENCES**[]{#__RefHeading___Toc180290565 .anchor}

###  {#section-3 .unnumbered}

### 5 U.S.C., Chapter 55, Pay Administration

### 29 U.S.C., Chapter 8, Fair Labor Standards

### 5 CFR, Part 551, Pay Administration under the Fair Labor Standards Act

### 5 CFR, Part 550, Subpart A, Premium Pay

### 5 CFR, Part 550, Subpart N, Compensatory Time Off for Travel

### BPAM Chapter 400/500A, Compensation, Position and Organizational Management

### Personnel Letter No. 410, Employee and Organizational Development and Training

### Personnel Letter No. 550-1, Overtime/Compensatory Time, Premium Pay, and Adjustment of Work Schedules for Religious Observances

### Personnel Letter No. 610-5, Hours of Duty

J. Cleve Brooks

Chief Human Capital Office