(1) In addition to the provisions of the FLSA and its regulations, state agencies shall do the following when administering overtime compensation and non-exempt compensatory time:

(a) Count all hours in a pay status as hours worked for the purpose of calculating a workweek. Absent time in a pay status, including holidays, paid leaves, and compensatory time taken off, is counted as hours worked.

(b) Require employees to report overtime hours worked on a time and attendance form as prescribed by the agency, for the additional hours to be compensated as overtime hours or accrued as nonexempt compensatory time.

(c) Record overtime and nonexempt compensatory time in no smaller than 1/10 hour increments. (For example: .1 hour equals 6 minutes and .2 hour equals 12 minutes.) The fractional increment may be rounded off, provided that over a period of time, this practice does not result in the failure to compensate the employee for the entire time actually worked.

(d) Require employees to take nonexempt compensatory time off in no less than one-half hour increments.

(2) Agencies shall keep records of wages, hours worked, and other items listed in the record keeping regulations of the FLSA found at 29 CFR Part 516 and 553.