CITY OF LODI

                            ADMINISTRATIVE POLICY AND PROCEDURE MANUAL

 

 

 

SUBJECT:                                           :           COMPENSATORY TIME OFF (CTO) - Policy

 

DATE ISSUED:                                   :           May 1, 1995

 

SECTION:                                           :           C

 

REFERENCE:                                     :           Memorandum from the Office of the City Manager (3-2-89);  Fair Labor Standards Act; Management/Mid-Management Statement of Benefits

 

 

SECTION 1:                                        PURPOSE

 

                                                            The purpose of CTO is to provide nonexempt employees with an option of utilizing time off in lieu of immediate cash payment for overtime hours worked.  The purpose of this policy is to define CTO, and to delineate the terms and conditions under which CTO can be accumulated and utilized.

 

 

SECTION 2:                                        DEFINITION

 

                                                            CTO is paid time off the job which is earned and accrued by an employee in lieu of immediate cash payment for hours worked in excess of the statutory hours for which overtime compensation is required, or in accordance with the appropriate memorandum of understanding.

 

 

SECTION 3:                                        ACCRUAL

 

                                                            CTO is accrued at the rate equivalent to not less than one and one-half hours for each overtime hour worked.

 

                                                            CTO may be accrued up to 480 hours for public safety personnel, and up to 240 hours for non-safety personnel.   Accrued CTO in excess of 240 hours or 480 hours shall be compensated with a cash payment.  Maximum accrual amounts may be stipulated by the terms and conditions of the appropriate memorandum of understanding and in accordance with the Fair Labor Standards Act.

 

SECTION 4:                                        PAYMENT OF CTO

 

                                                            Subject to the provisions of the appropriate memorandum of understanding, payment for CTO may be taken as scheduled time off, or as a cash payment at the end of  a fiscal year.

 

                                                            If taken as a cash payment, CTO hours shall be paid at the employee's current rate of salary.

 

 

SECTION 5:                                        PAYMENT OF CTO UPON                                                                                                              SEPARATION

 

                                                            In the event that an employee at the time of,  separation has accumulated earned CTO remaining on account, the employee shall be compensated a lump sum payment for any remaining CTO at the rate of straight time pay.  Earned CTO may be used to extend the time of service of an employee upon retirement.

 

 

SECTION 6:                                        PAYMENT OF CTO UPON PROMOTION

 

                                                            In the event that an employee with accrued CTO is promoted, the employee is either to use CTO leave and/or receive cash payment of remaining CTO prior to the effective date of the promotion.