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Section 4. Special Pav 4.1 Overtime - Middle Management EmDlovees. Middle management employees as specified in Appendix D may be eligible for overtime compensation under special circumstances approved by the city manager. Said overtime shall be compensated at a rate equal to one and one -half (1 -1/2) times the employee's regular rate of pay calculated to the nearest one -tenth (1 /10) of an hour. THIS SECTION IS UNDER REVIEW AND MAY BE MODIFIED CONSISTENT WITH RECENT FLSA INTERPRETATION. overtime -Confidential Employees. Confidential employees who are required to work after completion of their work day shall be entitled to overtime compensation for all hours so worked, provided, however, that the overtime rate shall be computed at one and one -half (1 -1/2) times the employee's regular rate of pay as calculated to the nearest one -tenth (1 /10) of an hour. Confidential employees may be compensated for overtime worked either by monetary payment or by compensatory time off, at the option of the employee. Compensatory time shall accrue at the rate of one and one -half (1 -1/2) times the overtime hours worked. Compensatory time off which accrues in excess of forty (40) hours must be liquidated by monetary payment. All monetary payments for overtime must be paid not later than the next biweekly payroll following the pay period in which the overtime was worked. Utilization of compensatory time off shall be by mutual agreement between the department head and the employee. Upon termination, the employee shall be paid for his /her unused compensatory time. Once a year, confidential employees may be paid for all accrued compensatory time. Said payments shall be made on the first pay day in December. Written requests for payment must be made by the employee fifteen (15) days in advance of the first pay day in December. 4.2 Holiday Pay. Middle Management (except Fire Battalion Chiefs) and Confidential employees required by their department director to work on a holiday shall be eligible for overtime compensation equal to twice that compensation established for regular time. Aire Battalion Chiefs, in lieu of observing holidays, shall receive an amount equal to seven and one -half percent (7 -1/2 %) of their annual salary exclusive of any overtime. Upon termination, battalion chiefs shall receive pro -rated holiday pay. police Lieutenants, in lieu of observing holidays may, as approved by the Police Chief and certified by the City Manager, receive an amount equal to four percent (4 %) of their - 5 -