Definition: For purposes of this M.O.U., compensatory time off (“CTO”) is time earned for overtime hours worked but not cashed out (as opposed to “paid leave time” which encompasses all paid leave categories including but not limited to CTO, Standard Holiday Pay, Float Holiday Pay, Vacation Leave, Sick Leave, Paid Administrative Leave, etc.)

Compensatory time balances as of the first full pay period in June of each year shall automatically be converted to a cash payment to the employee on the last paycheck in June unless State or Federal regulations indicate differently, or extenuating circumstances warrant the General Manager to authorize a carry-over amount not to exceed 40 hours upon request of an employee. Requests for carry-overs must be submitted in writing to the General Manager no later than June 15th of each year. In no event may CTO accrue more than the legally allowed 240 hours.