Overtime and Compensatory Time Policy UPPS No. 04.04.16
Issue No. 5
Review: June 1 E3Y
01. POLICY STATEMENTS
01.01 This UPPS sets forth the overtime and compensatory time policy for all university employees. The vice president for Finance and Support Services (VPFSS) must approve any exception to this policy.
01.02 The overtime and compensatory time policies and procedures of this UPPS strive to provide maximum flexibility to account managers. However, all policy and procedure decisions are subject to normal administrative review and approval, and must comply with applicable federal, state, and university requirements.
The president, within the boundaries of federal and state law, may authorize modification to any and all provisions of this policy to meet university needs and work requirements.
Human Resources is responsible for determining the Fair Labor Standards Act (FLSA) overtime status for each employee of the university.
a. “Non-exempt” and “exempt” are terms used in relation to the FLSA, which covers non-exempt employees but not exempt employees.
Non-exempt employees include all classified/non-exempt staff and the majority of student employees. Exempt employees include all unclassified/exempt staff, administrative officers/exempt staff, faculty, and selected graduate student employees.
b. The term "FLSA overtime" refers to time earned at the rate of one and one-half hours for one hour under the provisions of the FLSA and as described in Section 02.03 a. (below). Only non-exempt employees are eligible for "overtime."
c. The term "compensatory time" refers to time earned at the rate of one hour for one hour under the provisions of the state compensatory time program provided for in the Government Code §659.015, as described in Section 02.03 b. (Both unclassified/exempt and classified/non-exempt employees are eligible for "compensatory time".)
NOTE: An employee may accumulate compensatory time for hours worked during any calendar week at the employee’s personal residence if the employee obtains advance approval of the president or the president’s designee.
d. The university's workweek begins at 12:01 a.m. on Sunday and ends at 12:00 midnight the following Saturday.
e. The university's pay period begins on the first calendar day of the month and ends on the last calendar day of the month.
f. Hours worked include:
1) all time during which the university requires an employee’s presence on university premises, or at a prescribed or authorized work place, and
2) all time during which the university permits an employee to work, whether or not required to work. Hours worked do not include:
a) paid leave hours such as holidays, vacation, sick leave, emergency leave, overtime, or compensatory time off; or
b) interdepartmental event hours such as non-mandatory social events.
NOTE: The university does not consider that an employee who, as an employment condition, resides on university property on a permanent basis or for extended time periods works all of the time while on the premises.
3) Employees will record and round work time to the nearest quarter hour.
g. Some positions, as a condition of employment, may require more than forty hours a week due to the nature of the job.
h. Regular employees are those employed for at least twenty hours per week for an indefinite period or a definite period of at least 4.5 months, excluding students employed in positions that require student status as a condition of employment. Regular employees are benefits eligible.
i. Non-regular employees are those non-student employees who do not meet the definition of a regular employee. Non-student non-regular employees are not benefits eligible.
j. “On-Call” status – Supervisors may ask their employees to function in an on-call status as needed and may request they return to work within a prescribed time period. This policy shall pertain to those employees who are required to function in an “on-call” status with regard to the accrual of appropriate overtime and compensatory time.
The university will compensate a classified/non-exempt employee in an "on call" status who is called back to work during hours other than the employee's regular work hours for such work hours as stipulated in Sections 02.03 a. and b. Travel time to and from work during such "on call" hours is not considered work time.
02.02 Categories of Employees
There are five categories of employees at the university: faculty, administrative officers/exempt, unclassified/exempt, classified/non-exempt, and student.
a. Faculty are those employees with a specified academic rank holding a teaching appointment for a fixed term as determined by the president and approved by the Board of Regents. Faculty positions meet the federal FLSA definition, conditions, and requirements of a "professional." Therefore, faculty positions are exempt from overtime.
b. Administrative officers/exempt employees meet FLSA definitions, conditions, and requirements of either an executive, administrative, or professional employee and who the university designated as administrative officers in accordance with Board of Regents guidelines. These employees serve without fixed terms. Administrative employees are eligible to participate in the Optional Retirement Program (ORP). Administrative officers at Texas State are the president, vice presidents, and academic deans. Administrative employees are exempt from overtime.
c. Unclassified/exempt staff are those employees who meet the FLSA definition, conditions, and requirements of either an executive, administrative, or professional employee and who are appointed without fixed terms and serve at the pleasure of the president. Certain unclassified/exempt employees are eligible to participate in the ORP. Unclassified/exempt employees manage or participate in the management of a department or unit or perform a function requiring specialized expertise or professional training. Unclassified employees are exempt from overtime.
d. Classified/non-exempt staff are those employees who are subject to FLSA overtime provisions and who are appointed without fixed terms and serve at the pleasure of the president.
e. Student employees hold positions reserved only for university students. All student employees, except for selected graduate student employees, are non-exempt and are subject to FLSA overtime provisions. UPPS No. 07.07.03, Student Employment Procedures, UPPS No. 04.04.03, Staff Employment, UPPS No. 07.07.06, Salaried Graduate Assistant Employment Procedures, and the University Pay Plan provide additional information on student employees.
02.03 Full-time Classified/Non-exempt Employees
It is university policy to keep classified/non-exempt employee paid hours in excess of forty to a minimum. Supervisors should monitor and manage work schedules to avoid authorizing non-exempt employees to work in excess of forty hours per week. However, as a condition of employment, a department may require classified/non-exempt employees to work schedules that result in paid time in excess of forty hours per week. When this occurs, the employee will record the additional hours worked in excess of forty hours resulting in FLSA overtime or state compensatory time as appropriate.
The university permits additional hours worked only when authorized by the supervisor, not on a voluntary basis. Supervisors may take disciplinary action up to and including dismissal if a classified/non-exempt employee fails to get the supervisor's prior approval to work, except in emergency or on-call situations. If a classified/non-exempt employee works in an emergency or on-call situation, the employee should report it to the supervisor the next working day. Supervisors will only grant that authorization in extreme situations. The university will compensate a classified/non-exempt employee for all hours worked in excess of the standard 40-hour week as follows:
a. Regular (FLSA) overtime (earned within the employee's department):
Employees subject to the provisions of the FLSA are entitled to
compensation for any hours worked in excess of forty.
1) The university may allow an employee to take FLSA overtime off at the rate
of 1.5 hours for each hour over forty worked during the workweek. If taking
FLSA overtime off would disrupt normal operations, the university may pay the
employee in cash. A department may submit a request to Human Resources to pay
cash for some or all accrued FLSA overtime at any time. The account manager
should ensure that overtime payments are adequately budgeted in the appropriate
commitment item (670190) before payment.
2) Employees may carry an FLSA overtime balance up to but not beyond one hundred hours. Once an employee has accrued one hundred hours, the employee must receive all additional FLSA overtime in cash at the employee’s regular rate in the pay period immediately following that in which they earned the hours. The payroll system will generate this payment automatically, without requiring an overtime payment form.
3) When an employee is paid cash for FLSA overtime, the amount is calculated by multiplying 1.5 hours for each hour worked over forty during the week by the employee's regular hourly pay rate. Subject to the above conditions, the employee receives cash payment for overtime hours at the university’s discretion.
4) In accordance with the Texas Government Code, the university may only compensate the employee at the time and one-half FLSA overtime rate for hours actually worked in excess of forty.
5) Classified/non-exempt student employees receive hourly pay for all hours worked. The university will pay any hours worked over forty hours in a workweek at time and one-half.
6) Upon termination of employment or
death, the university will pay a classified/non-exempt employee or his or her
estate for any unused FLSA overtime balance earned at a rate of compensation
not less than:
a) the average regular rate received by such employee during the last three years of employment, or
b) the final regular rate received by the employee, whichever is higher.
7) Multiple appointments within the university – Should a classified/non-exempt employee with more than one Texas State appointment work over forty hours per week, the university will prorate responsibility for payment of all overtime hours between appointments. Employees paid monthly receive proration based on FTE. Employees paid hourly receive proration based on the number of hours worked in each appointment during the specific workweek.
8) The regular hourly rate for
employees for overtime or compensatory time purposes is determined by combining
basic pay, state longevity pay, and hazardous duty pay.
9) Changing departments – When an employee transfers from one campus department to another without a break in service, the gaining department has the option of accepting or rejecting any of the transferring employee's unused FLSA overtime balance. If the gaining department rejects the unused FLSA overtime balance, the losing department must pay the transferring employee's unused FLSA overtime balance at time of transfer. Any state compensatory time balance will transfer.
b. State Compensatory Time:
1) When a classified/non-exempt employee has not worked more than forty hours during a workweek, but the total of hours worked plus paid leave, holidays, and compensatory time taken exceeds forty hours, the department shall grant state compensatory time off on a straight time basis for the excess hours.
Employees must take state compensatory time during the 12-month period following the end of the workweek in which the compensatory time was accrued or it lapses, according to Government Code §659.015(g).
2) When a department authorizes a
regular classified/non-exempt employee to work on an official university
holiday, the employee will receive state compensatory time off on a straight
time basis for all hours worked during the holiday, and, if applicable, the
overtime provisions in Section 02.03 a. shall apply. The employee must take the
state compensatory time within the 12-month period following the date of the
3) Payments for State Compensatory Time – Employees will lose state compensatory time not taken within the 12-month period following the end of the workweek in which they earn the time. The university does not authorize cash payment for lapsed state compensatory time or for unexpired state compensatory time upon termination. However, the employee may receive cash payment for state compensatory time as an exception to this policy as provided below:
a) The divisional vice president may approve cash payment prior to employment termination for accrued, unexpired or unlapsed state compensatory time when taking off this time would disrupt the normal teaching, research, or other critical functions of the institution. The account manager should ensure that such payments are adequately budgeted in the appropriate commitment item (670190) before payment.
b) With the approval of the divisional vice president, a terminating employee may remain on the payroll until the end of the current month to expend unexpired state compensatory time. An employee will lose any state compensatory time balance remaining at the close of this option as provided in 3) of this subsection.
NOTE: Due to the provisions of state law, if an employee remains on the payroll under this option, that employee may not transfer to a state agency or Texas public institution of higher education until the appointment ends. State compensatory time does not transfer to or from another institution of higher education or state agency.
c) The divisional vice president may approve payment for the hours of compensatory time the employee earns for work directly related to a disaster or emergency declared by the appropriate state or federal officer.
02.04 Dual Employment:
The state considers an employee employed by two or more state agencies to work for one employer (i. e., the State of Texas) for overtime and compensatory time purposes. The agencies involved will determine which agency is the "primary" employer responsible for assuring the proper compensation when applicable.
02.05 Full-time Unclassified/Exempt Employees:
This section addresses full-time administrative officers, unclassified/ exempt staff, and faculty who earn vacation.
a. The university would prefer to keep the combination of actual work hours and paid leave hours in excess of forty per week for unclassified/ exempt employees to a minimum. However, the university recognizes, as a condition of employment, that departments expect unclassified/ exempt positions to work whatever hours they require, within any guidelines established by the supervisory chain of command. Some positions may routinely have work schedules that exceed forty hours per week.
b. Each divisional vice president
will determine if and how unclassified/ exempt employees take state
compensatory time other than as energy conservation days.
It is the supervisor's responsibility to notify employees of the departmental policy on unclassified/exempt personnel's compensatory time.
c. Unclassified/exempt employees do not earn FLSA overtime at time and one-half. They are only eligible to earn state compensatory time at a rate not to exceed one hour for one hour.
d. Unclassified/exempt employees must take state compensatory time during the 12-month period following the end of the workweek in which the compensatory time was accrued or it lapses, according to Government Code §659.015(g).
NOTE: State law prohibits unclassified/exempt employees from receiving pay for any unused state compensatory time.
e. All state compensatory time off is at the discretion of the supervisor within the state compensatory time off policy of the divisional vice president. Both the employee and the supervisor must agree on any time taken.
NOTE: While employees take compensatory time at a mutually agreeable time, Supervisors have total discretion to vary an employee's work schedule during the university's workweek to avoid accrual of state compensatory time.
f. The university must grant an unclassified/exempt employee, authorized to work on an official university holiday, state compensatory time off for all hours worked during the holiday. The employee must take the state compensatory time within the 12-month period following the date of the holiday worked.
g. An unclassified/exempt employee who is in an on-call status and who is called back to work during hours other than the employee's regular work hours may receive state compensatory time for such hours as stipulated in Section 02. Travel time to and from work during such on- call hours is not considered work time.
h. Recording unclassified/exempt employee state compensatory hours does not guarantee state compensatory time off.
02.06 Part-Time Classified/Non-Exempt Staff Employees (Regular and Non-Regular):
a. Hours up to forty – Employees must receive cash payment for each hour up to forty in any workweek resulting from the combination of hours worked and paid leave (as cited in the Appropriations Act).
b. Hours beyond forty:
1) Regular employees must receive compensation for all hours worked in excess of forty in any workweek in accordance with the provisions of Section 02.03.
2) Non-regular employees will receive cash payment for all hours worked in excess of forty in any workweek at time and one-half.
02.07 Part-time Unclassified/Exempt Staff Employees:
a. Hours up to forty – Employees may receive compensatory time according to Section 02.05, for each hour up to forty in any workweek (resulting from the combination of hours worked and paid leave) that exceeds the number of hours the employee was appointed to work that week. Employees may not receive cash for such hours.
b. Hours beyond forty – Employees who work in excess of forty hours in any workweek shall receive compensation according to the provisions of Section 02.05.
03. ON CALL
03.01 The university will compensate a classified/non-exempt employee in an on-call status who is called back to work during hours other than the employee’s regular work hours for these work hours as stipulated in Sections 02.03 a. and b. Travel time to and from work during such on-call hours is not considered work time.
04. CHANGES IN FLSA STATUS
04.01 Classified/Non-exempt to Unclassified/Exempt – Concurrent with the change to exempt status, the university will pay the employee for any unused FLSA overtime at the classified/non-exempt hourly rate in effect at the time of the change. Any state compensatory time balance will remain.
04.02 Unclassified/Exempt to Classified/Non-exempt – Concurrent with the change to classified/non-exempt status, the unclassified/exempt employee's unused state compensatory time balance will remain.
NOTE: FLSA status will only change from classified/non-exempt to unclassified/exempt on the first day of a weekly pay period.
05. TAKING TIME OFF
Supervisors have total discretion to modify an employee’s work hours to manage the accrual of FLSA overtime or state compensatory time. In the event such hours are earned, supervisors are encouraged to accommodate the employee's use of accrued FLSA overtime and state compensatory time to the extent practical within university policy.
05.01 FLSA Overtime
An employee may request permission to use accrued FLSA overtime at any time.
Supervisors may deny a request if the employee’s absence would unduly disrupt the department operations.
If an employee has requested time off to use accrued vacation, the supervisor can require the employee to utilize accrued FLSA overtime before taking vacation leave.
Supervisors can require an employee to take FLSA overtime at any time to manage further accumulation and liability of FLSA overtime balances.
05.02 State Compensatory Time
An employee may request permission to use accrued state compensatory time at any time. The use of state comp time must be mutually agreeable between the employee and supervisor.
Supervisors may deny a request if the employee’s absence would unduly disrupt department operations.
However, if a non-exempt employee requests to use state comp time at least 90 calendar days before it will expire, the supervisor shall approve the employee’s request or provide the employee with an alternative date on which to use the comp time before it expires. When the supervisor does not approve an employee’s 90-day advance request, the supervisor shall provide in writing the reasons for the denial as well as alternate dates when the employee can take compensatory time before it expires. Failure to accept an alternative date may result in loss of state comp time upon expiration.
Human Resources will notify employees and their department time administrator about any state compensatory time that is about to expire approximately 120 days in advance.
05.03 Energy Conservation Days
A regular staff employee who does not work on a scheduled energy conservation day must use paid leave to cover their absence. Employees are expected to use their state comp time, FLSA overtime or vacation to cover these days or be placed on leave without pay.
Since the university may not advance overtime or state comp time to employees, staff members must acquire the necessary hours in advance. Supervisors must provide ample opportunity for an employee to earn the necessary FLSA overtime or state comp time in advance of an energy conservation day.
If an employee earns FLSA overtime or state comp time in preparation for an energy conservation day but uses the hours for another reason, the supervisor has discretion on whether to allow the employee the opportunity to earn additional hours to cover the energy conservation day.
Supervisors can require an employee to use FLSA overtime for energy conservation days before utilizing state comp time or vacation.
A part time non-exempt employee generally will not accrue FLSA overtime or state comp time. Therefore, additional hours worked are paid as they are worked during the year to offset leave without pay during an energy conservation day. Supervisors are encouraged to work out a plan with their employee to set expectations on when additional payments and reduction for leave without pay will occur.
06. REST PERIODS AND MEALTIME
06.01 Employees are authorized two 15-minute rest periods during the normal workday for full-time employees, one in the morning and one in the afternoon. Employees working at least half-time, but less than full-time, are authorized one 15-minute rest period per day. Employees working less than half-time are not authorized rest periods. Employees may not use rest periods to shorten the workday or lengthen the lunch hour. Each office should stagger rest periods within the office.
a. Rest Periods – Rest periods of fifteen minutes or less are considered work time and recorded as regular hours worked.
b. Meal Periods – Bona fide meal periods are not considered work time. Bona fide meal periods do not include coffee breaks or time for snacks. These are rest periods as described above. Employees have at least thirty minutes for a meal period, during which they are completely relieved from duty. Employees do not have to leave the premises, but if they perform any work, the meal period becomes work time.
06.02 A department head may adjust the number and frequency of rest breaks as necessary to maintain a safe operating situation for crews working under potentially hazardous conditions.
07. REVIEWERS OF THIS UPPS
07.01 Reviewers of this UPPS include the following:
Director, Human Resources June 1 E3Y
Chief Diversity Officer and June 1 E3Y
Director, Equity and Access
Chair, Faculty Senate June 1 E3Y
Chair, Staff Council June 1 E3Y
08. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Human Resources; senior reviewer of this UPPS
Vice President for Finance and Support Services