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Retirement Benefits for Employees

Are municipal public libraries obligated to provide retirement benefits for all employees? Does the library board need to approve a motion to provide retirement benefits for all employees or selected employees? Does the number of hours pertain? Or does the employee qualify for state retirement system benefits through the municipality? Again - is it based upon hours worked?

Salaried/Non-Exempt Employees and Compensatory Time

It is not uncommon in small non-profits and higher education institutions to find an employment class called Salaried/Non-Exempt. If this person is not paid annually above the minimum salaried/exempt threshold AND their standard work hours fall below 40 hours, what are the laws governing the hours between standard work hours and 40 per week, and how are they applied?

For example: A library manager paid $32,000 per year, paid bi-weekly whose standard work week is 32 hours. If this manager works above 32 hours but less than 40, the library pays the manager compensatory time. 

How long after the accrual of this time is the library legally required to pay for the hours worked - either through time used or in money? 
And if in money, is it the hourly rate gained by annual "salary" / (standard work hours x 52)?

Finally, what if the library manager sought compensatory time over financial compensation as the better benefit? Do they have a choice?