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<br /> <br /> 23 <br />June 2025 <br />236096v1 <br />apply in all cases where an employee is engaged in activity related to and/or required in <br />connection with their Utilities employment. <br /> <br />Exempt employees are salaried and do not earn or receive overtime or, in turn, Comp Time. <br /> <br />Compensatory Time <br /> <br />Compensatory Time (“Comp Time”) is paid time off for earned overtime in lieu of direct <br />pay. Comp Time is accrued at the rate of one and one-half hours (or, two hours for overtime <br />earned for work on Sundays or designated holidays) for each hour of overtime earned. <br />Comp Time may be accrued and taken in lieu of direct overtime pay in accordance with <br />the following rules. Exempt employees do not qualify for Comp Time. <br /> <br />• When an employee earns overtime they may elect to accrue Comp Time in lieu of <br />direct pay for the overtime. <br /> <br />• Accrual of Comp Time is subject to a cap of 40 hours per calendar year. Once an <br />employee has accrued 40 hours of Comp Time in a calendar year, no further Comp <br />Time may accrue in that calendar year, even if the employee has used some or all <br />of the 40 hours previously accrued. Once the 40-hour cap is reached, all further <br />earned overtime will be paid directly on the paycheck for the period in which it is <br />earned. <br /> <br />• When an employee elects Comp Time they will not receive any pay for the hour <br />of overtime worked on their paycheck for the period in which the overtime is <br />earned. Instead, the employee will accrue one and a half hours (or, two hours for <br />overtime earned for work on Sundays or designated holidays) of Comp Time to be <br />used at the employee’s election within the calendar year before December 15. <br /> <br />• Under no circumstances will Comp Time ever be forfeited. Accrued Comp Time <br />that has not been used by December 15 will be paid out in full on the last payroll <br />check of the calendar year. Under no circumstances will Comp Time carry over <br />to a following calendar year. <br /> <br />• In order to elect to accrue Comp Time in lieu of receiving direct overtime pay in <br />the current payroll period, an employee must mark their timesheet for “Comp <br />Time,” clearly indicating the number of earned overtime hours they wish to accrue <br />as Comp Time in lieu of direct overtime pay. <br /> <br />• In order to use Comp Time, employees are to follow the same procedures as apply <br />to other paid time off and leave requests, including making specific arrangements <br />with their supervisor. Use of Comp Time is subject at all times to the operating <br />needs of the Utilities. <br /> <br />90