(1) All hours in a pay status shall be counted as hours worked for purposes of calculating exempt compensatory time earned. Absent time in a pay status, including holidays, paid leaves, and exempt compensatory time taken off, is counted as hours worked.

(2) Hours worked in excess of 40 in a workweek shall be reported on a time and attendance form, as prescribed by the agency, to be accrued as exempt compensatory time.

(3) Exempt compensatory time shall be earned, recorded, and used in no less than one-half hour increments.

(4) Records will be kept according to the record keeping requirements of the FLSA found at 29 CFR 516 and 553.