HR News – September 2006

HR news archives

Systemwide

Understanding federal and state overtime and compensatory time

Most people probably aren't aware of the differences between federal and state overtime, time-and-a-half and straight-time compensatory (comp) time, or exempt and nonexempt employees. However, understanding these terms can impact your work life.

This article offers a crash course in overtime law, and the definitions provided below explain many of the terms used in the article.

You work overtime when you work more hours than you are normally scheduled to work. Whether you are compensated (receive comp time or pay) for working overtime depends on whether you are exempt or nonexempt under federal law. Your supervisor can tell you whether your position is exempt or nonexempt. If you are eligible to be compensated, you can be granted compensatory time, or you can be paid for the time. The A&M System's practice is to grant comp time in most situations.

Federal Overtime
If you are nonexempt, you earn federal overtime whenever you work more than 40 hours in a workweek. Paid leave or holidays taken during a workweek are not counted as hours worked when determining federal comp time.

Normally, if you are nonexempt, you receive an hour and a half of comp time for each hour that you work in excess of 40 in a workweek. For example, if you work 43 hours one workweek, you will earn 4½ hours in federal overtime for the three extra hours you worked. Under certain circumstances and at your department head's option, you may be paid for overtime at a rate of one and a half times your hourly rate instead of receiving comp time.

If you work more than eight hours one day, your supervisor may require you to work fewer hours another day during the same workweek to avoid overtime.

You may accumulate up to 240 hours of federal comp time and keep it indefinitely. If you work in a public safety, emergency response or seasonal job, you may accumulate up to 480 hours. You will be paid for any overtime that exceeds these limits.

You keep your rights to accumulated federal comp time until you use the time or are paid for it. When you leave employment, you will be paid for remaining federal comp time or, with your supervisor's approval, you may remain on the payroll to use it up.

State Overtime
If you are nonexempt and you work no more than 40 hours in a workweek but your work time and paid leave or holidays total more than 40, you will receive state comp time for the hours that exceed 40 in the workweek. You will receive one hour of state comp time for each hour of paid time in excess of 40.

Let's say you work only 36 hours one week, but you also took eight hours of sick leave that week. Even though you reported 44 hours on your time sheet, you worked only 36 of those. This means you will earn four hours of state comp time (36 hours worked plus eight hours of sick leave minus 40 hours in a workweek).

If you are exempt, you also are eligible for state comp time to accommodate a flexible work schedule, if allowed by your employer. For example, an exempt employee may regularly work 45 hours one week, earning five hours of state comp time, and use that time to work only 35 hours the next. This applies only to a regular, approved flexible work schedule. If you are exempt, you are eligible for state comp time for working overtime only in limited circumstances and with the approval of your chief executive officer.

Whether you are exempt or nonexempt, you may not earn state comp time for any time you work at your home, except on a holiday. You must use state comp time within 12 months of the end of the workweek in which it was earned. If you do not use it within this period, you will lose it.

State law prohibits payment for state comp time at termination of employment. However, under A&M System policy, you may remain on the payroll to use up your state comp time.

Using compensatory time
You must have your supervisor's permission before using your accrued federal or state comp time. In most cases, supervisors will allow you to use your comp time when you wish. However, use of time off may be denied at times when your absence would disrupt critical functions of your department. Your supervisor may require you to use accrued federal comp time before using vacation.

If you request use of state comp time at least 90 days before it expires, your supervisor must either approve your request or suggest an alternate time you may take it. If you request use of state comp time less than 90 days before it expires, your supervisor must make every effort to accommodate your use of the time, but is not required to allow you to use it if your absence would disrupt critical functions.

For more information
If you have questions about federal or state comp time, ask your supervisor for more details or contact your Human Resources office. You'll also find information about comp time in two of System Human Resources' online training programs. The programs, "Time Off Issues for Employees" and "Time Off Issues for Supervisors," can be accessed at sso.tamu.edu (click on “HRConnect,” then "Training").

Back to top

Definitions

Federal overtime: You have worked overtime under federal law when you work more than 40 hours in a workweek.

State overtime: You have worked overtime under state law when your hours worked plus paid leave and holidays total more than 40 hours in a workweek.

Time-and-a-half comp time: Comp time awarded for working federal overtime. Eligible employees receive one and a half hours of comp time for each overtime hour worked.

Straight-time comp time: Comp time awarded for working state overtime. Eligible employees receive one hour of comp time for each overtime hour worked.

Nonexempt employees: Those not exempt from federal overtime laws. Nonexempt employees are eligible to be compensated for federal and state overtime. Nonexempt employees are required to submit timesheets documenting actual time worked and must have their supervisors' permission before working overtime.

Exempt employees: Those exempt from federal overtime laws. Exempt employees are not compensated for federal overtime and may be compensated for state overtime only in limited circumstances. Most exempt employees do not fill out timesheets and can work more than 40 hours without a supervisor's permission.

Workweek: If you are paid biweekly, your workweek is generally Thursday through Wednesday. If you are paid monthly, your workweek is Monday through Sunday.

Back to top

Determining your investment strategy

Once you’ve determined your short- and long-term financial goals, it’s time to develop an investment strategy. Understanding key investment principles such as risk tolerance, diversification and asset allocation can help.

How much risk can you tolerate?
Risk tolerance is how much potential for loss you’re willing to accept when it comes to your portfolio. Risk tolerance varies with a person’s age, income and financial goals. For example, a 70-year-old retired widow would generally have a lower risk tolerance than a 30-year-old executive.

There is a trade-off between how much risk you are willing to assume and how much you should expect in returns. If you are unwilling to assume much risk, you must be willing to accept a low-risk rate of return.

Diversifying to reduce risk
When creating a portfolio, some investors try to choose the investments they believe will give them the best opportunity to outperform the market. However, most financial experts believe that the most effective investment strategy for building a long-term portfolio involves diversifying across a broad range of asset classes, such as stocks, bonds, money market and real estate. The theory is that the investor can lessen risk because each asset class has a different correlation to the others.

For example, when stocks rise, bonds often fall. At a time when the stock market begins to fall, real estate may begin generating above-average returns. Investing in mutual funds from different asset classes is often the easiest way for most investors to diversify their portfolios.

Spreading it around
Because of the uncertainty of the markets, asset allocation (dividing holdings among different asset classes) is a good way to manage risk and build a long-term portfolio.

Establishing and maintaining a diversified portfolio is a better approach than trying to “time” the market. Market timing is attempting to guess which way the financial markets will move, then moving funds from one account or asset class to another based on these predictions. Since no one can know for sure how the markets will perform, particularly over the long term, market timing is a strategy that’s bound to fail most of the time.

Create a portfolio
How do you create a portfolio that is right for your needs? Many financial services companies give you tools to help you diversify your portfolio among a range of asset classes like stocks, bonds and money market investments. They are designed to interpret your risk tolerance, investment preferences and “time horizons” (the number of years you have to invest before you use the money, and how many years you’ll need that money to last). Talk to your investment advisor about creating a diversified portfolio that meets your needs within your comfort zone.

Maintain the balance
Once you have designed your investment portfolio, your main objective should be to maintain the balance in your asset mix. Periodic rebalancing is a sensible way to ensure that you maintain an appropriate allocation strategy. Generally, you need to rebalance your portfolio only if you’ve experienced a noticeable shift in your original asset mix. Keep in mind that rebalancing will not necessarily increase your returns.

There are a few ways to rebalance your holdings. You can transfer funds from accounts that have grown larger than their target allocations to the accounts that have become smaller. You can contribute a lump sum to the accounts that are now proportionally smaller to bring your investments in those asset classes back to their target levels. You can also change your future allocations so that your contributions are applied to the investments that are below their recommended targets while keeping your current mix of assets.

Review your strategy
You should review your portfolio every three to five years to see if you need to make changes. Your life circumstances may change, and these life events may mean you should not simply rebalance, but instead adjust your investment strategy. Life changes that can affect your strategy include:

  • Marriage. You’ll need to coordinate your investment strategies with those of your spouse.
  • Birth or adoption of a child. This can reduce the money you have for investing and result in changes in your time horizon and/or your financial goals.
  • A job change. This can alter the amount you’re able to set aside to invest and the investment choices available under your new retirement plan.
  • Preparing for retirement. You may want to adjust your portfolio to protect assets from volatility and loss.

This article is part of an ongoing series of articles regarding retirement savings. The information has been provided by various A&M System ORP and TDA vendors.

Back to top

PharmaCare introduces Specialty Pharmacy

PharmaCare now has a Specialty Pharmacy program designed to assist A&M Care participants who use specialty medications to treat chronic illnesses. The Specialty Pharmacy offers:

  • Delivery of up to a 30-day supply of medication to the individual’s home or physician’s office.
  • Around-the-clock access to a staff of pharmacists, nurses and care coordinators who understand the individual’s condition.
  • Educational materials, support and home instruction.
  • Better coordination of care with the individual’s physician.

A&M Care participants who began purchasing specialty medications on or after Sept. 1 will be required to purchase those drugs through the Specialty Pharmacy. Participants who began using specialty drugs before Sept. 1 will have the option of purchasing those drugs through the Specialty Pharmacy or through their regular retail pharmacy. However, if they begin purchasing other specialty medications on or after Sept. 1, they must go through the Specialty Pharmacy.

Back to top

Any Questions?

I was enrolled in a Spending Account last year, and I have a reimbursement check that I haven’t deposited. Can I still deposit it even though Tax Saver Plan is no longer the plan administrator?

Yes, you can, but you must deposit it by Nov. 15. After that, the check will no longer be valid, and you will have to contact your Human Resources office about getting reimbursed. Any unclaimed funds will eventually be turned over to the State of Texas.

Back to top

Understanding the risks of ovarian cancer

According to the American Cancer Society (ACS), ovarian cancer ranks fifth as the cause of cancer death in women. ACS estimates that more than 20,000 new cases of ovarian cancer will be diagnosed in the United States this year, and more than 15,310 women will die this year because of the disease.

September is Ovarian Cancer Awareness Month, making it the ideal time to learn about the risk factors and symptoms of the deadly disease and what you can do to help lower your chances of developing it.

Risk factors
According to the ACS, risk factors for ovarian cancer include:

  • History of ovarian cancer among close blood relatives (mother, sister, daughter).
  • Age. Most cases of ovarian cancer occur after menopause.
  • Use of the fertility drug clomiphene citrate, especially if pregnancy did not occur.
  • Obesity.
  • Occurrence of breast cancer. Women who have had breast cancer have a higher risk of developing ovarian cancer.

While the presence of these risk factors does not guarantee that a woman will get ovarian cancer, a woman who has one or more of them should be on the lookout for early symptoms.

Symptoms
Ovarian cancer is difficult to detect, but the National Ovarian Cancer Coalition (NOCC) says potential signs and symptoms of ovarian cancer include:

  • Pain or discomfort in the pelvic region or abdomen.
  • Swelling, bloating and/or feeling of fullness in the pelvic region or abdomen.
  • Persistent gastrointestinal problems, such as gas, nausea and/or indigestion.
  • Unexplained changes in bowel habits.
  • Frequent urination (in the absence of infection).
  • Unexplained weight gain or weight loss.
  • Ongoing fatigue.

If you experience any of these symptoms for more than two weeks, consult your physician.

Reducing the risk
The NOCC says there is currently no known way to prevent ovarian cancer, but that studies suggest certain things can reduce a woman’s risk of developing the disease:

  • Use of oral contraceptives. Women who use oral contraceptives for three or more years have about a 30%-50% lower risk of developing ovarian cancer than women who have never used oral contraceptives.
  • Having children and breast feeding.
  • Maintaining a healthy weight through a balanced diet and exercise.
  • Surgeries such as tubal ligation (tying the fallopian tubes), hysterectomy and prophylactic oophorectomy (removing one or both ovaries).

For more information, visit the ACS online at www.cancer.org and the NOCC online at www.ovarian.org.

Back to top

Tips for a successful exercise program

Aerobic exercise—whether it’s walking, jogging, swimming, cycling or dancing—helps make a heart healthier, which is why sticking to an exercise program is so important. Here are some tips for exercise success, courtesy of the American Heart Association:

  • Always see your doctor for a medical evaluation before beginning a physical activity program.
  • Keep exercise from becoming boring or routine by choosing a variety of activities that are fun.
  • Wear comfortable, properly fitted footwear and loose-fitting clothing appropriate for the weather and activity.
  • Find a convenient time and place to exercise. Try to make it a habit, but be flexible. If you miss an exercise opportunity, work activity into your day another way.
  • Entertain yourself with music while you work out.
  • Build a support network to help keep you accountable.
  • Stick to low- or moderate-level activities at first, then slowly increase the duration and intensity as you become more fit.
  • Keep a written record of your activities.
  • Reward yourself as you achieve special milestones.

Back to top

Diet rich in fruits and vegetables key to good health

Most people are familiar with the proverb “an apple a day keeps the doctor away.” While the exact origin of this proverb is unclear, the underlying advice is good.

“Diets rich in fruits and vegetables can help promote good health and may help prevent chronic diseases, including heart disease and certain forms of cancer,” said Dr. Jenna Anding, a registered dietitian and nutrition specialist with Texas Cooperative Extension.

This year, the American Cancer Society estimates that more than one million Americans will be diagnosed with cancer. Although the causes of cancer are complex, researchers estimate that nearly one-third of all cancer deaths may be related to diet. Meanwhile, heart disease, which may also be related to diet, continues to be the leading cause of death in the United States.

Numerous studies have reported the health benefits of a diet that is rich in fruits and vegetables. While experts currently recommend no fewer than five servings of fruits and vegetables each day, they say that number is actually higher for different groups. Children, teenage females and active women need to eat seven servings a day, while teenage boys and active men may need as many as nine.

Unfortunately most people aren’t even meeting the minimum goal. This means that many Americans are also missing out on important nutrients such as vitamins A and C. They may also be missing out on a great source of dietary fiber and unique compounds called phytochemicals.

“Phytochemicals are found only in plant foods, including fruits and vegetables,” Anding said.

Research on phytochemicals has found that some of them may have significant health benefits. For example lycopene, which is found in tomatoes, grapefruit and watermelon, may help prevent heart disease and prostate cancer. Lutein, found in spinach and collard greens, may promote eye health. Resveratrol, found in red grapes, may help prevent stroke as well as heart disease. And indoles, a group of phytochemicals found in broccoli, brussels sprouts and cabbage, may help reduce the risk of certain forms of cancer.

For individuals interested in increasing their intake of fruits and vegetables, Anding offers the following advice.

“First, plan your meals and snacks to include a variety of colorful fruits and vegetables,” she said. “That is probably the key step in increasing fruit and vegetable intake.”

Anding also recommended:

  • Including strawberries, peaches or bananas in breakfast cereals.
  • Starting the day with 100% fruit or vegetable juice (a serving is only six ounces).
  • Adding vegetables such as lettuce, tomato or onions to sandwiches.
  • Brightening up a plain salad with carrots, bell peppers, broccoli and cauliflower.

Finally, pick fresh produce when the price and quality are at their best. Otherwise, select canned or frozen varieties. These also count toward the five-a-day goal.

This information is provided as a service by Texas A&M Agriculture. If you have questions or would like more information, talk to your physician or registered dietician.

Back to top