12-08-2025 - Agenda Packet City Council - Regular Meeting

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and taxes will be adjusted (so that the year's Form W-2 is correct) and the paying department will receive the corresponding credit. When an overpayment occurs, the repayment must be made within the same tax year. In the exceptional situation where the overpayment occurs in one tax year and is not discovered until the next year, the overpayment must be repaid in the year it is discovered, but there will be additional steps and paperwork required. Any overpayments not repaid in full within the calendar year of the overpayment are considered "prior year overpayments" and the employee must repay not only for the net amount of the overpayment, but also the federal and state taxes the city has paid on their behalf. The city is able to recover the overpaid Social Security and Medicare taxes. Accordingly, the city will not require the employee to repay those taxes provided the employee provides a written statement that he/she will not request a refund of the taxes. The overpayment amount will remain taxable in the year of the overpayment since the employee had access to the funds. The employee is not entitled to file an amended tax return for the year but may be entitled to a deduction or credit with respect to the repayment in the year of repayment. Employees should contact their tax advisors for additional information. Section 7.03 Time Reporting The City uses an electronic time reporting system. Non-exempt employees will be paid according to the time reported in the time -keeping system. Exempt employees will be paid according to their annual salaries, but should record actual time worked for budgeting purposes. To comply with the provisions of the federal and state Fair Labor Standards Acts, hours worked, and any leave time used by non- exempt employees are to be recorded daily and submitted to payroll on a bi-weekly basis. Each time reporting form must include the digital approval of the employee and immediate supervisor. Reporting false information on a time report may be cause for immediate termination. Section 7.04 Overtime / Compensatory Time The City of Orono has established this overtime policy to comply with applicable state and federal laws governing accrual and use of overtime. For payroll purposes, overtime will be rounded to the nearest one -quarter (1/4) of an hour. All employees, in all departments, are required to work overtime as requested by their supervisors as a condition of continued employment. Refusal to work overtime may result in disciplinary action. Supervisors will make reasonable efforts to balance the personal needs of their employees when assigning overtime work. Section 7.05 Non -Exempt (Overtime -Eligible) Employees All overtime -eligible employees will be compensated at the rate of time -and -one-half for all hours worked over 40 in one workweek. Sworn law enforcement personnel engaged in law enforcement activities will be paid overtime for hours worked above 171 hours in a continuous 28 day pay period. Vacation, sick leave, and paid holidays do not count toward "hours worked." Compensation will take the form of either time -and -one-half pay or compensatory time. Compensatory time is paid time off at the rate of one -and -one-half hours off for each hour of overtime worked. For most employees the workweek begins at 12:00 a.m. on Monday and runs until the following Sunday night at 11:59 p.m. Supervisors may establish a different workweek based on the needs of the department, subject to the approval of the city administrator. The employee's supervisor must approve overtime hours in advance. An employee who works Page 26 of 151 iV*A