Join us for a webinar to discuss holiday time reporting at 9 a.m. on Friday, Nov. 20. Please review the holiday time reporting guide and videos for your respective areas prior to the webinar and bring any questions you have in preparation for the holidays.  Join the Zoom here.

The Fair Labor Standard Act (FLSA) requires that we pay non-exempt employees overtime (OTP) when they work over 40 hours in a week. This is also true when a non-exempt employee has more than one job or record in our system. Non-exempt employees at U-M are paid bi-weekly.

Example: An administrative assistant works a full time 40-hour position and takes an additional temporary role in another department for 10 weeks. The temporary role is an additional 20 hours per week.

Since the employee is already working 40 hours on their regular job, all of the hours worked on the temp job would be required to be paid as overtime (OTP). If the employee takes a PTO day for 8 hours on their regular job one week, then the first 8 hours worked of the temp role would be reported as REG in that same week and any hours after that would be OTP. PTO does not count towards the calculation of the 40 hours worked in the week.

How Accruals Work for PTO and Vacation Plans

Accruals are loaded at the beginning of each month for the current month. For monthly paid employees, the accrual is loaded and available for use effective on the 1st of the month. For biweekly paid employees, the accrual is loaded and available for use at the start of the biweekly pay period the 1st of the month falls into.

Reasons why an adjustment may be needed to the accrual load:

• termination
• change in effort
• other appointment change
• employee who is using unpaid time, extended sick and types of paid time that count against accruals

There may be a reduction in accrual by the full amount, or half for the month.

Adjustments of the initial accrual load for appointment changes or use of unpaid and paid time that counts against the accrual, is manually handled by each payroll central office in the following month. This generates some overpayments if the hours are not available for reduction due to already being used.

For overpayments, the following scenarios apply:

• If an employee is still being actively paid, deductions would be set up from future paychecks based on a repayment agreement between the employee and the department.
• If employment is terminated, we have to process a net overpayment and bill the employee. If the overpayment amount is less than $300, it is written off and no attempt to collect is made.
• For those who have been overpaid that are on an unpaid leave of absence, the overpayment would be put on hold and deducted from paychecks based on agreement when they return. Or, if they don’t return from leave, the same applies for when an employment termination.

December Payroll Calendar now available!

On May 5, 2020, the PTO Sell Back program was placed on hold indefinitely for non-bargained staff, as part of the Michigan Medicine Economic Recovery Plan. At this time the hold is still in place.

Bargained for staff, please refer to the appropriate collective bargaining agreement regarding sell back eligibility. The current sell back form is available here.

There is a new holiday code to be used for nurses who are mandated to work on the holiday and it is overtime (OT). Use (HWM) which is paid at 1.75x the hourly rate.

Submit completed payroll corrections to one of the following:

• Email: UMHHC-Payroll-HR-Fax@med.umich.edu
• Fax: (734) 615-8722

All monthly paychecks will be issued on December 31. Also, the recognition bonus will be included in this paycheck for both monthly and bi-weekly paid employees.

There will not be a communication for next week due to the Thanksgiving holiday. The Payroll office will be closed on Thursday, Nov. 26 and Friday, Nov. 27 in celebration of the holiday.