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Compensation

Pay Period
Pay days for Finance and Administration employees occur twice monthly and fall on or about the 15th and last working day of the month. If a pay day falls on a weekend or a holiday, pay checks are received on the nearest working day in advance of that day.

Each pay check received is payment for the previous 2-week work period rather than the work period just completed. For example, January 31 is a pay day for the work period of January 1 through January 15 rather than January 15 through 31. The pay day for January 15 through 31 is February 15.

With the exception of an employee’s first and last pay checks received as a state employee, all pay checks are direct deposited to the employee’s specified financial institution. (The specified financial institution must be a member of the Federal Reserve Board). Payment by direct deposit is a required condition for employment with the state of Tennessee. After deductions, all pay checks must be deposited in their entirety to one account only, unless the employee opts to become a member of the Tennessee Workers Credit Union. In that event, an employee may choose to have part of their check deposited in more than one account within the credit union.

Each pay day, employees receive by mail an itemized statement of gross pay, various deductions, net pay, leave time accrued, leave time taken, and other items of importance.

Overtime
Additional compensation may be paid to eligible state employees who work in excess of their regularly scheduled hours at the direction of an appropriate manager. This additional compensation may be paid in two forms:

  1. Overtime pay is extra payment made to an employee at an hourly rate based on the employee’s regular hourly rate of pay. If an employee is scheduled to work 37.5 hours a week and works up to and not exceeding 40 hours, the employee is paid their regular hourly rate of pay for the extra 2.5 hours. If an employee exceeds 40 hours, the employee is paid 1½ times their regularly hourly rate of pay for the hours exceeding 40 hours.

                   

  2. Compensatory leave is time off with pay in lieu of overtime pay. Compensatory leave is earned when an employee works more than his/her regular scheduled work week.

Some employees are not eligible for compensation for overtime work. Others are eligible for compensatory leave but not overtime pay. Still others are eligible for either overtime pay or compensatory leave and may choose which type of compensation for overtime they prefer.

The administration of overtime work compensation is driven by the following definitions:

Exempt Personnel are employees whose positions have job classifications that are defined as exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA). These employees are eligible to receive compensatory leave time for overtime work, but are ineligible to receive overtime pay.

Non-Exempt Personnel are employees whose positions have job classifications that are subject to the overtime pay requirements of the Fair Labor Standards Act (FLSA). These employees are eligible for cash compensation for time actually worked overtime, or they may choose to be compensated with compensatory leave.

Executive Grade Personnel are employees whose positions have job classifications that are not eligible to receive any compensation for overtime work. However, if an executive grade employee is scheduled to work on a legal holiday, the holiday may be rescheduled to be taken on another day.