1714 - Part-time Employee Compensation

Category

Compensation

Audience List

  • Employee Relations Officers
  • Labor Relations Officers
  • Personnel Officers
  • Personnel Transactions Supervisors

Synopsis

This policy

  • Provides direction on compensation, including retirement contributions, for part-time employees subject to the Fair Labor Standards Act (FLSA) who work in excess of their time-base.
  • Provides information on part-time employees who work a schedule other than five equal days per week.

Introduction

All state employees who are California Public Employee Retirement System (CalPERS) members are subject to retirement contributions on all hours worked up to 40 hours in a work week, including part-time employees. This policy provides guidance on compensating a part-time employee who works over their time base, up to 40 hours.

Statement

Retirement Contributions for Part-time Employees Who Work Over Their Time Base

Pursuant to the Government Code, retirement deductions are required when the normal monthly rate of pay or base pay is paid for services rendered on a full-time basis during normal working hours. As applied to hourly employees with a time base of less than full-time, CalPERS retirement contributions must be withheld for all hours worked up to 40 in a work week.

The State Controller’s Office (SCO) has an earnings identifier (EID) to compensate part-time employees for all hours worked over their time base up to 40 hours in a work week. Departments utilizing the SCO payroll system must use the EID which will withhold the appropriate retirement contributions. Departments that use their own payroll system must establish an EID to ensure that the appropriate retirement contributions are withheld.

Part-time employees are not eligible for compensating time off (CTO) until after they have been compensated in cash for all hours worked up to 40 in the work week.  Otherwise, part-time employees must be compensated in cash through the payroll system for all hours worked over their time base.

Compensation for time worked over 40 hours in a work week remains unchanged and existing SCO EID’s or compensating time off (CTO) is applicable.

Employees Excluded From the Fair Labor Standards Act (FLSA)

Employees excluded from the FLSA with a set time base are not eligible to receive additional compensation for time worked, therefore this policy does not apply to these employees. For example, an employee with a time base of half-time, designated work week group E who works more than 20 hours in a work week does not receive additional compensation therefore retirement contributions for extra hours worked does not apply.

Part-time Employees Who Work a Non-Standard Work Week

Employees who work a part-time schedule other than the standard, five equal days per week, do not earn excess hours, nor may they have a deficit at the end of a pay period. Part-time employees working a non-standard, five days per week, schedule should meet with their supervisor at the beginning of each pay period to ensure they are scheduled to work the required number of hours for their time base each pay period. Any time worked in excess of their time base is compensable as stated above for the week in which it is earned.

Application

Follow SCO payroll processing instructions for keying all hours worked over the employee’s time base, up to 40 hours in a work week. Compensation for time worked after 40 hours in a work week is unchanged.

Authorities

Resources

Not Applicable.

Contact Person

Personnel Services Branch
Personnel Program Consultant, Personnel Services Branch
Phone: 916-323-3343
Fax: 916-327-1886
Email: psb@calhr.ca.gov

Authorized By

Melissa Russell
Chief, Personnel Management Division

History

View History

Table of Contents

1000 - Equal Employment Opportunity

1100 - Selection

1200 - Appointments

1300 - Exempt Employees

1400 - Benefits and Insurance

1500 - Work Schedules

1600 - Third Party Pre-Tax Parking

1700 - Compensation

1800 - Savings Plus

1900 - Bona Fide Associations

2000 - Collective Bargaining

2100 - Leave

2200 - Travel/Relocation

2300 - State Owned Housing

2400 - Employee Recognition

2500 - Discipline

2600 - Layoffs

2700 - Retirement

2800 - Training

2900 - Workforce Planning

3000 - Examination and Hiring

3100 - Drug-Free Workplace