POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: IX A
MEETING DATE: 2/22/2022
TITLE
Compensatory Time Off Policy
RECOMMENDED ACTION
Adopt Compensatory Time Off (CTO) Policy
ANALYSIS
The City of Point Arena currently provides its employees overtime as required by state and federal law. Overtime occurs when an employee exceeds 40 hours in a workweek. City Administration seeks to minimize the use of overtime but given small staffing levels this is not always possible.
Some employees of the city have indicated they would prefer to utilize their overtime pay at a later date as a supplement to their vacation pay. Compensatory Time Off (CTO) allows employees to “bank” hours not paid in overtime to a future date, similar to vacation pay.
For example, if someone were to work 45 hours, then five hours of that time could be held over at the overtime rate of 1.5 hours per hour worked until a later date that the employee could use at their own convenience.
The effect of CTO policy is to provide flexibility to employees and spread out the cost of overtime across the entire fiscal year. CTO is not required for employees to utilize but will provide an option for employees to use at their discretion.
The attached policy would implement a CTO Policy for the City of Point Arena, which would allow our payroll provider to implement a CTO program for city employees to utilize. Your City Manager recommends the implementation of a Compensatory Time Off (CTO) Policy to provides employees and the City greater flexibility for the use of overtime hours.
FISCAL IMPACT
Neutral. However, CTO hours would be paid when used as opposed to paid at the time overtime is accrued.
ATTACHMENTS
New Section 12.22 of Personnel Rules & Regulations: Compensatory Time Off
CITY MANAGER SIGNATURE
_________________________________ Paul Andersen, City Manager City of Point Arena Personnel Rules & Regulations Manual Add Section 12.22
12.22 Compensatory Time Off
With the immediate supervisor or City Manager approval, compensatory time, in lieu of overtime pay, may be taken. Employees who work overtime may be paid for it at the rate of time and one-half or may accrue compensatory time at a rate of time and one-half. Employees may accrue up to 120 hours of compensatory time after which said employee must accept overtime pay in lieu of accruing additional compensatory time. An employee must be permitted to use compensatory time within a reasonable period after making a request if the use of the compensatory time will not unduly disrupt the operations of the department.