PUBLIC LETTER – OVERTIME PAY CALCULATION FOR PUBLIC EMPLOYEES RECEIVING PREMIUM PAY

January 18, 2024

The Office of Inspector General (OIG) provides an independent and objective assessment of government policies, programs, and operations by conducting audits, evaluations, and investigations. The purpose of this letter is to address concerns regarding overtime pay raised during an ongoing audit. It is the opinion of this office that in order to mitigate waste and promote efficiency by public entities, voluntary hours worked for a premium rate in excess of normal working hours should be excluded when calculating overtime.
It is important that government entities spend public funds in an efficient and effective manner. This includes properly following relevant laws when compensating public employees. This is especially important during Carnival season when many employees work overtime for higher rates of pay. We anticipate this guidance will help these entities properly calculate their overtime pay going forward.

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