Common use of FLSA Overtime Clause in Contracts

FLSA Overtime. 1. Employees shall be paid overtime for all hours worked in excess of 40 during a 7-day work period at a rate of time and one-half the employee's regular rate of pay. For purposes of calculating FLSA overtime, "hours worked" shall mean only those hours actually worked during the work period. Paid and unpaid leave time shall not count as hours worked for purposes of determining eligibility for FLSA overtime. Paid leave time shall include, but not be limited to, vacation leave, holiday leave, sick leave, administrative leave, bereavement leave, military leave, jury duty, disciplinary leave (including suspensions with pay), and all forms of disability leave (including IOD/Workers' Compensation, STD, and LTD leaves). At its discretion, the City may require the use of compensatory time at the rate of 1.5 hours off for every hour worked overtime in lieu of paying FLSA overtime. 2. The particular overtime to be paid to an employee depends upon which type of overtime is the more generous to the employee. Such determination shall be made at the conclusion of each work period. 3. Sections 1 and 2 above are designed to implement the mandatory provisions of the Fair Labor Standards Act. If, through legislative or judicial determination, it is held that the FLSA is not applicable to the City, overtime eligibility and pay shall be determined solely by the provisions of subsection "A" above.