Hi Megan,

 

Although not explicit, I’ve quoted a few sections under UG 230.430 compensation below that I have used to defend OT costs to auditors.  

 

Along with these sections, we have had auditors question this from a reasonability perspective and ask why we had a nonexempt individuals charging overtime instead of paying a second nonexempt individual regular pay to do the task. We defended this by explaining individual 1 was the only person able to do the particular task, in the instance it came up. I could see it being problematic if the reason for overtime was poor shift management or for convenience or favor to the employee to get extra hours in that aren’t truly necessary for the extra cost to the grant scope.

 

Specifically sections:

 

1. Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities;
1. If your payroll department allows OT costs across fund groups that gives you consistency.
2. (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and
1. Individual appointed under institutional and DOL regulations for nonexempt individuals

 

(b) Reasonableness. Compensation for employees engaged in work on Federal awards will be considered reasonable to the extent that it is consistent with that paid for similar work in other activities of the non-Federal entity. In cases where the kinds of employees required for Federal awards are not found in the other activities of the non-Federal entity, compensation will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor market in which the non-Federal entity competes for the kind of employees involved.

                If you hired the person into a nonexempt position based on labor market norms in your area.

(3) In accordance with Department of Labor regulations implementing the Fair Labor Standards Act (FLSA) (29 CFR part 516), charges for the salaries and wages of nonexempt employees, in addition to the supporting documentation described in this section, must also be supported by records indicating the total number of hours worked each day.

 

Marcel Villalobos
Assistant Director, Postaward Services
Sponsored Projects & Contracting Services

The University of Arizona
(520) 626-6311

 

From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> On Behalf Of Megan Roth
Sent: Wednesday, May 29, 2019 2:39 PM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: Re: [RESADM-L] overtime

 

 

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