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.
02. GENERAL
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.
02.01 Definitions:
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
holiday worked.
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:
Position Date
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
President