On this page:

• What Counts Towards Overtime?
• How to Report Overtime
• Need Help With Time Reporting?
• Learn More

Non-exempt employees who are paid biweekly must be paid overtime compensation at one-and-one-half times their regular hourly rate of pay for all hours worked above 40 hours in a workweek. Overtime pay for non-exempt employees is required by U-M policy and by law under the Fair Labor Standards Act (FLSA).

What Counts Towards Overtime?

Only time worked is counted toward the 40 hours per week required for overtime pay. Exception time such as vacation, sick, PTO, holiday, military reserve duty, season days, educational time, funeral, extended sick, and time for jury duty does not count toward the 40 hours per week of time worked that is required for overtime pay.  (Note: Staff represented by a collective bargaining unit should consult their agreements concerning overtime.)

How to Report Overtime

Non-exempt employees must report all hours worked in addition to exception time to the nearest one-tenth of an hour. 

Use the code OTP (Overtime 1.5) to report time worked above 40 hours in one workweek, which are paid at one-and-one-half times your regular hourly rate of pay. 

Use the code OTR (OverAppt Regular 1.0) to report time in excess of your normal scheduled hours when you did not actually work more than 40 hours in one workweek – for instance, if you used paid time off for part of the week, or your normal schedule is less than 40 hours and you remain below 40 even with additional work time. These hours will paid at your regular rate of pay.

Sample Time Reporting Scenarios With Overtime

Example 1 – Using OTP for Hours Worked Above 40 in One Week

An employee who typically works five eight-hour days stays an extra two hours one afternoon, for a total of 42 hours worked that week, including two hours of overtime paid at time-and-one-half.

Example 2 – Using OTR With Time Off

An employee who typically works five eight-hour days takes three days of vacation and then works one eight-hour day and one 12-hour day, for a total of 20 hours worked but 44 total hours reported that week. The employee does not get paid overtime because they did not work more than 40 hours.

Example 3 – Using OTR With Less Than 40-Hour Schedule

An employee who typically works three 12-hour shifts is called in for an extra three hours on another day, for a total of 39 hours worked that week. The employee does not get paid overtime because they did not work more than 40 hours.

Example 4 – Using OTR With Less Than 40-Hour Schedule and Time Off

An employee who typically works three 12-hour shifts takes one PTO day, and then works two regular remaining shifts and picks up an extra eight-hour shift, for a total of 32 hours worked but 44 hours reported that week. The employee does not get paid overtime because they did not work more than 40 hours.

Example 5 – Using OTP With Less Than 40-Hour Schedule

An employee who typically works three 12-hour shifts picks up an additional 12-hour shift later in the week, for a total of 48 hours worked. The employee gets paid overtime at time-and-one-half for 8 hours.

Need Help With Time Reporting?

For additional help with biweekly time reporting, go to My Linc and search using the keyword "time" for timekeeping training.

• View a list of all time reporting codes and their definitions on the Payroll website.
• Contact your department timekeeper or HR representative.

Frequently Asked Questions About FLSA and Overtime For Non-Exempt, Non-Bargained-For Staff

Learn More

• SPG 201.38 Overtime Pay.