Overtime and Compensatory Time
Policy UPPS No.
04.04.16
Issue
No. 2
Effective
Date: 02/29/2008
Review:
June 1 EY
01. POLICY
STATEMENTS
01.01 This UPPS sets forth 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 FLSA overtime status for each employee of the University.
02.01 Definitions:
a. Non-Exempt and Exempt – These are terms used
in relation to the Fair Labor Standards Act (FLSA). Non-exempt employees are
covered by the Act. Exempt employees are not.
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. Categories of Employees
1) Faculty – 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
FLSA definition, conditions, and requirements of a “professional.” Therefore,
faculty positions are exempt from overtime.
2) Administrative Officers/Exempt – Those
employees who meet the FLSA definition, conditions, and requirements of either
an executive, administrative, or professional employee and who have been
designated by the University as administrative officers in accordance with
guidelines issued by the Board of Regents. These employees serve without fixed
terms. Administrative officer employees are eligible to participate in the
Optional Retirement Program (ORP). Administrative officer employees usually are
primarily responsible for the administration of a major division or subdivision
or perform an administrative function requiring highly specialized expertise or
professional training. Administrative officer employees are exempt from
overtime.
3) Unclassified/Exempt – Those employees who
meet the FLSA definition, conditions, and requirements of either an executive,
administrative, or professional employee and who are serving without fixed
terms. Certain unclassified/exempt employees are eligible to participate in the
Optional Retirement Program (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.
4) Classified/Non-Exempt – Those employees who
are subject to FLSA overtime provisions and who are appointed without fixed
terms.
5) Student Employees – Those employees who hold
positions that are reserved for students of the University only. All student
employees, except for selected graduate student employees, are non-exempt and
are subject to FLSA overtime provisions. Additional information on student
employees can be found in UPPS No.
07.07.03, Student Employment Procedures, UPPS No.
04.04.03, Staff Employment, UPPS 07.07.06
Salaried Graduate Assistant Employment Procedures and the University Pay
Plan.
c. The term "overtime" refers to time
earned at the rate of 1½ hours for 1 hour under the provisions of the FLSA and
as described in Section 02.03 a. (below). Only non-exempt employees are
eligible for "overtime."
d. The
term "compensatory time" refers to time earned at the rate of 1 hour
for 1 hour under the provisions of the state compensatory time program provided
for in the Government Code Sec. 659.015, as described in Section 02.03 b. (Both
unclassified/exempt and classified/non-exempt employees are eligible for
"compensatory time".)
NOTE: Government Code Sec. 659.018,
states: “…an employee …may not, for hours worked during any calendar week,
accumulate compensatory time off … to the extent that the hours are
attributable to work performed at a location other than the employee's regular
or temporarily assigned place of employment. The employee's personal residence
may not be considered the employee's regular or temporarily assigned place of
employment.”
e. The University's workweek begins at 12:01
a.m. on Sunday and ends at 12:00 midnight the following Saturday.
f. The University's pay period begins on the
first calendar day of the month and ends on the last calendar day of the month.
g. Hours worked include:
1) all time during which an employee is required
to be on the employer's premises, or at a prescribed/authorized work place, and
2) all time during which an employee is permitted
to work, whether or not the employee is required to do so. Hours worked do not
include:
a) paid leave hours such as holidays, vacation,
sick leave, emergency leave, or overtime or compensatory time off; or
b) interdepartmental event hours such as non-mandatory
social events.
NOTE: An employee who, as a
condition of employment, resides on University property on a permanent basis or
for extended periods of time is not considered to be working all of the time
while on the premises. Work schedules for such employees will be established in
order to maintain a 40-hour workweek.
3) work time is to be recorded and rounded to
the nearest ¼ hour.
h. Some positions, as a condition of employment,
may require more than 40 hours a week due to the nature of the job.
NOTE: Participation in the
University’s Wellness Program is not considered work time. It will be
compensated as paid time off. Employees must use the “Wellness Program” time
code to record this time. Wellness is not included in the calculation for FLSA
overtime.
02.03 Full-time Classified/Non-exempt Employees
It is University policy to keep
classified/non-exempt employee paid hours in excess of 40 to a minimum.
Supervisors should monitor and manage work schedules to avoid authorizing
non-exempt employees to work in excess of 40 hours per week. However, as a
condition of employment, classified/non-exempt employees may be required to
work schedules that will result in paid time in excess of 40 hours per week.
When this occurs, the paid time in excess of 40 hours will be recorded as FLSA
overtime or state compensatory time as appropriate.
FLSA overtime or state compensatory
time work is not permitted on a voluntary basis and must be authorized by the
supervisor. Supervisors may take disciplinary action up to and including
dismissal if a classified/non-exempt employee fails to get the supervisor's
prior approval for FLSA overtime or state compensatory time 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. Such authorization will be granted only in
extreme situations. A classified/non-exempt employee must be compensated for
all hours worked in excess of the standard 40-hour week as follows:
a. Regular (FLSA) overtime (earned within the
employee's department)
1) Employees subject to the provisions of the
FLSA are entitled to compensation for any hours worked in excess of 40 in the
week in one of two ways.
The University may allow the
employee to take FLSA overtime off at the rate of 1.5 hours for each hour over
40 worked during the workweek. If the taking of FLSA overtime off would be
disruptive to normal operations, the employee may be paid 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 100 hours. Once an employee has accrued 100 hours and has
not used it as leave, all additional FLSA overtime will be paid in cash at the
employee's regular rate. Such payment must be made in the pay period
immediately following that in which it was earned. No overtime payment form
will be required; the payment will be generated automatically within the
payroll system.
3) When an employee is to be paid cash for FLSA
overtime, the amount will be the result of multiplying 1.5 hours for each hour
worked over 40 during the week by the employee's regular hourly rate of pay.
Subject to the above conditions, cash payment for overtime hours is granted at
the discretion of the University.
4) In accordance with the Texas Government Code, employees may only be compensated at the time and
one-half FLSA overtime rate for those hours actually worked in excess of 40 in
the University's workweek.
5) Classified/Non-exempt student employees are
paid hourly for all hours worked. Any hours worked in excess of 40 hours in a
workweek must be paid at time and one-half.
6) Upon termination of employment or death, a
classified/non-exempt employee or his or her estate, as appropriate, will be
paid 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 3 years of employment, or
b) the final regular rate received by the
employee, whichever is higher.
b. Straight (State) Compensatory Time
1) When a classified/non-exempt employee has not
worked more than 40 hours during a workweek, but the total of hours worked plus
paid leave, holidays, and compensatory time exceeds 40 hours, the employee
shall be granted state compensatory time off on a straight time basis for the
excess hours.
The state compensatory time must be
taken 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 regular classified/non-exempt employee
is authorized to work on an official University holiday, the employee will be
granted 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 state compensatory time for the holiday must
be taken within the 12-month period following the date of the holiday worked.
3) Payments for State Compensatory Time – State
compensatory time not taken within the 12-month period following the end of the
workweek in which it was earned lapses and will be lost. Cash payment for
lapsed state compensatory time is not authorized. Likewise, cash payment
for unexpired state compensatory time upon termination is not authorized.
However, cash payment for state compensatory time is authorized as provided
below:
a) With approval of the divisional vice
president, an employee may be paid cash prior to termination of employment for
accrued, unexpired or unlapsed state compensatory time when the taking off of
such time would be disruptive to 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. Any state
compensatory time balance remaining at the close of this option will be lost 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) Cash payment for unexpired state compensatory
time will be made to the estate of a deceased employee.
NOTE: For b) and c) above, a request
should be submitted to Human Resources.
c. On Call – A classified/non-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 shall be compensated 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.
d. Dual Employment – An employee employed by two
or more state agencies is considered to work for one employer (i. e., the State
of Texas) for overtime and compensatory time purposes. The agencies must
coordinate to determine which one will be considered the "primary"
employer having the responsibility to assure proper compensation when
applicable.
e. Multiple appointments within the University –
Should a classified/non-exempt employee with more than one Texas State appointment
work in excess of 40 hours per week, the responsibility for payment of all
overtime hours shall be prorated between appointments. For employees paid monthly,
proration is based on FTE. For employees paid hourly, proration is based on the
number of hours worked in each appointment during the specific workweek.
f. The regular hourly rate for employees for
overtime or compensatory time purposes is determined by combining basic pay,
state longevity pay, hazardous duty pay, and benefit replacement pay.
g. 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.
h. Changes in FLSA status:
1) Classified/Non-exempt to unclassified/exempt
– Concurrent with the change to exempt status, the employee shall be paid for
any unused FLSA overtime. Any state compensatory time balance will remain.
Payment of FLSA overtime shall be at the classified/non-exempt hourly rate in
effect at the time of the change.
2) 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: A change in FLSA status from
classified/non-exempt to unclassified/exempt can only be made on the first day
of a weekly pay period.
i. Taking Time Off – Supervisors are encouraged
to accommodate, to the extent practical within university policy, the
employee's use of accrued FLSA overtime and state compensatory time.
1) Employees Not Paid from Grants – All FLSA
overtime and state compensatory time is to be taken at a time that is mutually
agreeable to both the employee and the supervisor. However, supervisors can
deny requests for FLSA overtime or state compensatory time off if the absence
of the employee would be unduly disruptive to the department's operations.
An employee may request permission
to use accrued FLSA overtime or state compensatory time at any time. In
addition, state law provides that if, at least 90 calendar days before accrued
state compensatory time will expire, an employee requests use of that state
compensatory time, the supervisor shall approve in writing the employee’s
request or provide the employee with an alternative date on which the employee
may use the compensatory time before it expires. Texas State policy further
requires that 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 provide alternate dates when the compensatory time can be taken before
it expires. Failure to accept an alternative date may result in loss of
state compensatory time upon expiration.
Human Resources will notify
employees and their supervisors about any state compensatory time that is about
to expire 120 days in advance.
NOTE: While FLSA overtime or state
compensatory time off is to be taken on a mutually agreeable basis, supervisors
have total discretion to vary an employee's work schedule during the
University's workweek to avoid accrual of FLSA overtime and state compensatory
time.
2) Employees Paid From Grants – The provisions
of Section 02.03 i. 1) apply except as follows: Since all FLSA and state
compensatory time earned by an employee while appointed on a grant are the
responsibility of that grant, grant account managers shall ensure there are no
such outstanding liabilities on the last day of the grant. As such, as a
condition of employment, grant account managers may require that both FLSA and
state compensatory time be taken off at the grant account manager’s discretion.
02.04 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 40 per week
for unclassified/ exempt employees to a minimum. However, the University
recognizes, as a condition of employment, that all unclassified/exempt
positions are expected to work whatever hours are required, within any
guidelines established by their supervisory chain of command, to meet the
requirements of the position. Some positions may routinely have work schedules
that exceed 40 hours per week.
b. Each divisional vice president will determine
if and how the taking of state compensatory time by unclassified/exempt
employees for other than energy conservation days will be permitted in the
unclassified/ exempt employee's division.
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 1 hour for 1 hour.
d. The state compensatory time must be taken
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 being paid 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. Any time taken should be at a time that is
mutually agreeable to both the employee and supervisor.
NOTE: While state compensatory time
off is to be taken on a mutually agreeable basis, supervisors have total
discretion to vary an employee's work schedule during the University's workweek
to avoid accrual of state compensatory time.
f. When an unclassified/exempt employee is
authorized to work on an official University holiday, the employee must be
granted state compensatory time off for all hours worked during the holiday.
Such state compensatory time must be taken 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 02.03 b. Travel time to and from work
during such "on call" hours is not considered work time.
h. The recording of unclassified/exempt employee
state compensatory hours does not guarantee or create an obligation that any
state compensatory time off for these hours must be granted.
02.05 Part-Time Classified/Non-Exempt Staff
Employees (Regular and Non-Regular)
a. Hours up to 40 – Employees must be paid cash
for each hour up to 40 in any workweek resulting from the combination of hours
worked and paid leave (as cited in the Appropriations Act).
b. Hours beyond 40 –
1) Regular employees must be compensated
for all hours worked in excess of 40 in any workweek in accordance with the
provisions of Section 02.03.
2) Non-regular employees must be
compensated for all hours worked in excess of 40 in any workweek at time and
one-half.
02.06 Part-time unclassified/exempt staff employees
a. Hours up to 40 – Employees may be awarded
compensatory time in accordance with Section 02.03 for each hour up to 40 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 be paid cash for such hours.
b. Hours beyond 40 – Employees who work in
excess of 40 hours in any workweek shall be compensated in accordance with the
provisions of Section 02.04.
03. REVIEWERS OF
THIS UPPS
03.01 Reviewers of this UPPS include the following:
Position Date
Director,
Human Resources June
1 EY
Director,
Equity and Access June
1 EY
Chair,
Faculty Senate June
1 EY
Chair,
Staff Council June
1 EY
04. 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