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opting for a 10 percent reduction to produce a workweek of 3 days of 8.5

            hours and 1 day of 8.25 hours. Such a schedule would generate savings for

            the employee of commuting expenses, childcare costs, etc. An alternative
            work schedule which applies to a single employee is considered to be an

            individualized work schedule and does not require approval through the
            normal Alternative Work Schedule approval process.

            8. Effect on Benefits and Status
               The effect of participation in the VRWS program on benefits and status

            is outlined in Appendix A.
            9. Effect on Overtime Payment for Overtime Eligible Employees

               Scheduled absences charged to VR credits, unlike absences charged to
            leave credits, are not the  equivalent of  time worked for purposes of

            determining eligibility for overtime payments at premium rates within a
            workweek. For example, an employee who, under an 80 percent VRWS

            schedule, works four days, charges the fifth day to VR credits, and is called
            in to work a sixth day, will not be considered to have worked the fifth day

            and thus will not be entitled to premium rate payments on the sixth day.
            Similarly, VR credits earned, banked and charged after the payroll period

            in which they are earned  are not counted  in determining eligibility for
            overtime in the workweek in which they are charged. However, employees

            who work full time at reduced salary and bank VR credits who, as the result
            of working and charging leave accruals other than VR credits, exceed their

            normal 37.5 or  40-hour workweek continue to be eligible for overtime
            compensatory time and paid overtime in that workweek as appropriate.

               Sections 135.2(h) and (i) of Part 135 of the Budget Director’s Overtime

            Rules are waived to the extent necessary to permit payment of overtime
            compensation to overtime-eligible employees who are participating in this
            program.

            10. Discontinuation or Suspension of VRWS Agreements

               Although VRWS agreements are for stated periods of time, they can be
            discontinued by mutual agreement at the end of any payroll period. VR

            agreements may be discontinued, at management discretion, when an
            employee is promoted, transferred or reassigned within an agency, facility

            or institution, although VR credits must be carried forward on the
            employee’s time record.

               VR agreements may also be discontinued when  an employee  moves


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