Overtime charges are generally allowable for personnel other than faculty members and should be distributed proportionately to all activities during the time period in which they are earned.
e.g. Employee A, who is overtime eligible, works 20 hours on cost Center 14-XXXX and 30 hours on budget XX-XXXX for a total of 50 hours. Cost Center 14-XXXX should be charge 40% (20/50) of both the regular earnings and the overtime earning for employee A. In addition, if employee A’s cost center activity involved more than one job for the time period, each job would normally share in the overtime earnings charged to the cost center.
Overtime charges can be recovered in two ways. 1) If overtime can be estimated with a high degree of certainty the incremental costs should be distributed to and included in the appropriate services prior to determining the rates for those services. 2) If overtime cannot be estimated with a high degree of certainty or is unanticipated the cost can be recovered through the next proposal cycle, via the over/under recovery adjustment. 3) The incremental cost of the overtime (overtime salaries plus the additional fringe benefits) can be added to the charges for ALL services (jobs) that employee worked on during the period of time the overtime was earned. Note, this is not a rate adjustment rather it represents only the actual incremental (additional) costs of the overtime.