The basic workweek for annual salaried employees of State departments, agencies and institutions, other than those employed on a part-time basis only and other than employees excluded from the application of overtime compensation under the rules of the Director of the Budget adopted pursuant to section 134 of the Civil Service Law, shall be 40 hours; provided, however, that where a shorter workweek would not interfere with the proper performance of government functions the department may establish a basic workweek of not less than 37½ hours and five days, or an authorized equivalent work schedule, for any employees under its appointive jurisdiction as may be designated by it with the approval of the Division of the Budget; provided, however, that this section shall not be construed to increase the workweek of any employee for whom a workweek of less than 40 hours is prescribed by law, rule or administrative regulation as of the day preceding the effective date [February 6, 1986] of these rules.

Daily time records showing actual hours worked by each employee shall be maintained during the period covered by the school calendar and for any period during which an employee may receive compensation in addition to regular salary; provided, however, that the department may, with the approval of the Department of Civil Service, exempt from this requirement such executives, officers and employees who do not earn overtime as it may designate. Employees exempt from maintaining daily time records showing actual hours worked shall maintain a daily record of absences and time and leave credits earned and used in accordance with these rules.

Overtime shall not be earned for time worked in excess of the basic workweek during the 10-month period an employee is paid his/her regular salary. An employee who is required to work in his/her position or in any other position allocated to a salary grade in section 130 of the Civil Service Law for the two-month period during which such regular salary is not paid shall receive additional compensation for such service.