(1) A state employee who is authorized to work one (1) or more hours in excess of the prescribed hours of duty shall be granted compensatory leave on an hour-for-hour basis. Upon the written request of an employee who is not exempt from the provisions of the Federal Fair Labor Standards Act, 29 U.S.C. sec. 201 et seq., an appointing authority may grant compensatory time, in lieu of overtime pay, at the rate of one and one-half (1.5) hours for each hour the employee is authorized to work in excess of forty (40) hours in a work week. An employee who is transferred or otherwise changed from the jurisdiction of one agency to another shall retain his compensatory leave in the receiving agency.
(2) An employee in a position listed in KRS 18A.115(1)(d), (e), (f), (g), (h), (i), or (k) shall not be eligible to receive any level of block payment for compensatory leave hours, except as provided in subsection (3) of this section.
(3) Any employee who leaves state service shall be paid for the balance of unused compensatory time not to exceed two hundred forty (240) hours.