State Agencies Bulletin No. 1602

Subject
New Overtime Earnings Codes for Overtime Eligible Employees in Civil Service Employees Association (CSEA) Bargaining Units
Date Issued
October 23, 2017

This bulletin has been superseded by Payroll Bulletin 1602.1

Purpose

To provide agency instructions for new overtime earnings codes to be used for Time Entry overtime payments

Affected Employees

Employees who are overtime eligible and are in CSEA Bargaining Units 02, 03, 04 and 47

Background

Chapter 165 of the Laws of 2017 which implemented the 2016-2021 Agreement between the State of New York and the Civil Service Employees Association (CSEA) provides for the change in the calculation of overtime for all eligible members.

Prior to the 2016-2021 Agreement, overtime was calculated using the factor of .00075 based on a denominator of 2,000 hours. The new agreement changes the overtime factor and will be implemented in two phases. For overtime earned on or after 10/05/17 (Administration) or 10/12/17 (Institution) overtime will be paid using the overtime factor of.000735, based on a denominator of 2,040 hours.

Effective 04/01/2019, the overtime factor will be paid on the denominator of 2,080 hours and be changed to .00072.This change will be covered in a future bulletin.

Effective Date(s)

The new overtime earnings codes for overtime eligible employees in the Civil Service Employees Association (CSEA) will be paid using the following effective dates and check dates:

Pay Cycle/Pay Period Type Effective Date Payment Effective Date Check Date
Administration Lag 10/05/2017 10/19/2017 11/15/2017
Administration Extra Lag 10/05/2017 10/19/2017 11/15/2017
Institution Lag 10/12/2017 10/26/2017 11/22/2017
Institution Extra Lag 10/12/2017 10/26/2017 11/22/2017

Eligibility

Employees in CSEA Bargaining Units 02, 03, 04 and 47 who have overtime earnings on or after 10/05/17 (Administration) or 10/12/17 (Institution) date will be paid at the revised overtime rate per the 2016-21 Agreement.

OSC Actions

OSC has created new Earns Codes and updated certain existing Earns Codes to be used to report overtime for eligible CSEA employees as indicated below:

The following Earns Codes have been created in PayServ:

New Earn Code Description Replaces Associated Retro Code Replaces
40C Over 40 Cash Out CSEA D40 – Over 40 Cash Out R04 – Retro Over 40 Cash Out R4C – Retro Over 40 Cash Out
LCO Longevity adjustment OT CSEA LAO – Longevity Adjustment Overtime N/A N/A
O4C Over 40 Hrs OT LSP CSEA O40 – Over 40 Hrs OT LSP R4O - Retro Over 40 Hrs OT LSP CSEA RC4 – Retro Over 40 Hrs OT LSP
OCS OT for Annual CSEA OTA – Overtime for Annual R2C – Retro Overtime CSEA ROA – Retro OT - Annuals
ORC Overtime Recall CSEA RCL – Recall Overtime R2R – Retro OT Recall CSEA RRO – Retro Recall Overtime
OWC OT Waiver for CSEA OTW – Overtime Waiver RWC – Retro OT Waiver for CSEA ROW – Retro Overtime Waiver

Revision: SCC – Stand by OT Classified – CSEA and ORS – Recall Standby OT CSEA Class were removed from the chart above of new Earns Codes created. Agencies should continue to use SOC – Stand by OT Classified and SOY – Standby OT Adjust – CSEA.

The following Earns Codes have been updated in PayServ:

Earn Code Description Associated Retro Code
PSA Preshift BU 04 YDA RP4 – Retro PSB BU 04 YDA
SOY Standby OT Adjust – CSEA RS1 – Retro Standby OT Adjust CSEA
HDO Hospital Duty Overtime Retro Hospital Duty OT
OIC Overtime with Int Inc Pay – CSEA N/A

Revision: OIC – Overtime with Int Inc Pay – CSEA was added to the above chart of updated Earns Codes.

Agency Actions

To report one of the new Overtime Earnings Codes the agency must submit the Earn Code in the Time Entry page using the following procedures:

Earnings Begin Date: Effective date started
Earnings End Date: Effective date ended
Earn Code: Enter appropriate code
Hours/Units: Number of Hours/Units, where practicable
Comments: Agency must enter a comment identifying eligible purpose for overtime that exceeds the maximum on the Earns Table

Revision: Time Entry Earning that are paid as an amount such as, but not limited to HDO and OCS will not calculate properly from 10/05/17 to 10/11/17 for employees on the Institution cycle. The agency must calculated and submit adjustments to these earnings using the Time Entry Code of ADJ.

Agencies must use the new overtime factor in the calculation when submitting any payments using the override codes such as OTT and OTO.

Agencies must continue to use Earns Code OTK – OT Hourly/Biweekly to pay overtime to hourly and biweekly employees.

Tax Information

These monies are taxable income, will be included in the employee’s taxable gross and are subject to all employment and income taxes. Income taxes will be calculated using the employee’s current Tax Marital Status and Withholding Allowances on the Update Employee Tax Data page in PayServ. The adjustments (Retro (RXX)) are supplemental taxable income, will be included in the employee’s taxable gross income subject to all employment and income taxes.

Federal, State and New York City income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding will be calculated using the Flat Rate method (1.61135% for Yonkers residents and 0.50% for Yonkers non-residents).

Payroll Register and Employee Paycheck/Advice

The Earnings Codes and the amount will be displayed on the payroll register. The earnings description and the amount will be displayed on the employee’s paycheck or advice.

Questions

Questions about this bulletin can be directed to the Payroll Earnings mailbox.