UPPS 04.04.16 - Overtime and Compensatory Time Policy
Overtime and Compensatory Time Policy
UPPS No. 04.04.16
Issue No. 7
Effective Date: 5/29/2018
Next Review Date: 6/01/2021 (E3Y)
Sr. Reviewer: Assistant Vice President for Human Resources
This policy sets forth the overtime and state compensatory time procedures for all Texas State University employees. The vice president for Finance and Support Services (VPFSS) must approve any exception to this policy.
The overtime and state compensatory time policies and procedures set forth herein strive to provide maximum flexibility to department heads. 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.
The university’s full-time standard workweek is 40 hours and begins at 12:01 a.m. on Sunday and ends at 12:00 midnight the following Saturday. Some positions, as a condition of employment, may require more than 40 hours of work in a week due to the nature of the job. Hours worked include:
all time that the university requires an employee’s presence on university premises or at a prescribed or authorized work place; and
all time during which the university permits an employee to work, whether or not required to work. Hours worked do not include paid leave hours such as holidays, vacation, sick leave, or emergency leave.
The university does not consider that an employee who resides on university property on a permanent basis or for extended periods, as an employment condition, works all of the time while on the premises.
Employees will record and round work time to the nearest quarter hour.
Fair Labor Standards Act (FLSA) – a federal statute that establishes, among other things, the federal minimum wage and required overtime compensation for certain employees at a rate not less than one and one-half times the regular rate of pay after 40 hours of work in a workweek.
Unclassified Employees – employees exempt from the provisions of the FLSA and, thus, not eligible to earn FLSA overtime, but are eligible to earn state compensatory time.
Classified Employees – employees who are covered by the provisions of the FLSA and are eligible to earn both FLSA overtime and state compensatory time.
FLSA Overtime – time earned by a classified employee at the rate of one and one-half hours for each hour worked over 40 hours in a workweek as provided by the FLSA, Section 659.015 of the Texas Government Code, and this policy.
State Compensatory Time – time earned at the rate of one hour for one hour under the provisions for state compensatory time as provided in Section 659.015 of the Texas Government Code and this policy.
An employee may only accumulate state compensatory time for hours worked at the employee’s residence if the employee obtains advance approval of the president or the appropriate vice president as designated by the president.
“On-Call” Status – Some employees may be designated to be available to accept communications or return to work during certain periods of time that is outside of the employee’s normal working hours.
Types of Employees
There are five categories of employees at the university: faculty, administrative officers, unclassified, classified, and student.
Faculty – those employees with a specific academic rank holding a teaching appointment for a fixed term as determined by the president and approved by The Texas State University System (TSUS) Rules and Regulations of the Board of Regents, Chapter V, Section 4.
Administrative Officers – determined by the president, and include vice presidents, academic deans, and the director of Athletics, are exempt from the FLSA’s overtime provisions, and do not have a Pay Plan pay range maximum.
Unclassified Staff – are exempt from the FLSA’s overtime provisions and do not have a Pay Plan pay range maximum.
Classified Staff – are covered by the FLSA’s overtime provisions and have a Pay Plan pay range minimum and maximum.
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.
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 No. 07.07.06, Salaried Graduate Student Employment, and the University Pay Plan.
Full-time Classified Employees
It is university policy to keep classified employee-paid hours in excess of 40 to a minimum. Supervisors should monitor and manage work schedules to avoid authorizing classified employees to work in excess of 40 hours per week. However, as a condition of employment, a department may require classified employees to work schedules that result in paid time in excess of 40 hours per week. When this occurs, the employee will record the additional hours worked in excess of 40 hours resulting in FLSA overtime or state compensatory time, as appropriate.
The university permits additional hours worked only when authorized by the supervisor. Supervisors may take disciplinary action up to and including dismissal if a classified employee fails to get the supervisor’s prior approval to work, except in emergency or on-call situations.
If a classified 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 employee for all hours worked in excess of the standard 40-hour week as follows:
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 40.
The university may allow an employee to take FLSA overtime off at the rate of one and one-half hours for each hour over 40 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 before payment.
Employees may carry an FLSA overtime balance up to, but not beyond, 100 hours. Once an employee has accrued 100 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.
When an employee is paid cash for FLSA overtime, the amount is calculated by multiplying one and one-half hours for each hour worked over 40 during the workweek 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.
Student employees receive hourly pay for all hours worked. The university will pay any hours worked over 40 hours in a workweek at time and one-half.
Upon termination of employment or death, the university will pay a classified employee, or his or her estate, for any unused FLSA overtime balance earned at a rate of compensation not less than:
the average regular rate received by such employee during the last three years of employment; or
the final regular rate received by the employee, whichever is higher.
Multiple Appointments within the University – Should a classified employee with more than one Texas State appointment work over 40 hours per week, the university will prorate responsibility for payment of all overtime hours between appointments. Employees paid monthly receive proration based on full-time equivalency (FTE). Employees paid hourly receive proration based on the number of hours worked in each appointment during the specific workweek.
The regular hourly rate for employees for overtime or state compensatory time purposes is determined by combining basic pay, state longevity pay, and hazardous duty pay.
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.
State Compensatory Time
When a classified employee has not worked more than 40 hours during a workweek, but the total of hours worked plus paid leave, holidays, and compensatory time taken exceeds 40 hours, the employee will earn state compensatory time 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).
When a department authorizes a regular classified 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 02.04 a. shall apply. The employee must take the state compensatory time within the 12-month period following the date of the holiday worked. Supervisors may vary an employee’s work schedule to avoid accrual of state compensatory time with the exception of the time needed to account for energy conservation days.
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:
The vice president for Finance and Support Services must approve any cash payment prior to employment termination for accrued, unexpired, or un-lapsed 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 such payments are adequately budgeted in the appropriate commitment item before payment.
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.
The divisional vice president may approve payment for the hours of state compensatory time the employee earns for work directly related to a disaster or emergency declared by the appropriate state or federal officer.
Full-time Unclassified Employees
This section addresses full-time administrative officers, unclassified staff, and faculty who earn vacation.
The university would prefer to keep the combination of actual work hours and paid leave hours in excess of 40 per week for unclassified employees to a minimum. However, the university recognizes, as a condition of employment, that departments expect unclassified 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 40 hours per week.
Unclassified 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.
Unclassified 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).
State law prohibits unclassified employees from receiving pay for any unused state compensatory time.
All state compensatory time off is at the discretion of the supervisor within the state compensatory time off policy. Both the employee and the supervisor must agree on any time taken.
No more than 24 consecutive hours of state compensatory time may be used at any one time without approval from the divisional vice president. This excludes energy conservation days.
An unclassified employee will earn state compensatory time for all hours worked on an official university holiday. The employee must take the state compensatory time within the 12-month period following the date of the holiday worked.
An unclassified 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.
The state considers an employee employed by two or more state agencies as working for one employer (e.g., the State of Texas) for overtime and state compensatory time purposes. The agencies involved will determine which agency is the primary employer responsible for assuring the proper compensation, when applicable.
Regular and Non-Regular Part-time Classified Staff Employees
Hours up to 40 – Employees must receive cash payment for each hour worked up to 40 in any workweek resulting from the combination of hours worked and paid leave.
Hours worked beyond 40 –
Regular employees must receive compensation for all hours worked in excess of 40 in any workweek in accordance with the provisions of Section 02.04.
Non-regular employees will receive cash payment for all hours worked in excess of 40 in any workweek at time and one-half.
Regular Part-time Unclassified Staff Employees
Hours up to 40 – Employees may receive state compensatory time according to Section 02.04 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 receive cash for such hours.
Hours beyond 40 – Employees who work in excess of 40 hours in any workweek shall receive compensation according to the provisions of Section 02.04.
Non-Regular Part-time Unclassified Staff Employees
Hours up to 40 – Employees will be paid for each hour worked.
Hours beyond 40 – Employees will not be paid for hours worked beyond 40.
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 FLSA overtime and state compensatory time.
In certain circumstances, exempt employees may be compensated for being in an on-call status. The appropriate vice president must approve such compensation.
The university will compensate a classified employee in an on-call status who is called back to work as stipulated in this policy or in accordance with any on-call policy and approved by the appropriate vice president.
Travel time to and from work while in an on-call status is not considered work time.
CHANGES IN FLSA STATUS
Classified to Unclassified – Concurrent with the change to unclassified status, the university will pay the employee for any unused FLSA overtime at the classified hourly rate in effect at the time of the change. Any state compensatory time balance will remain.
Unclassified to Classified – Concurrent with the change to classified status, the unclassified employee’s unused state compensatory time balance will remain.
FLSA status will only change from classified to unclassified on the first day of a weekly pay period.
PROCEDURES FOR 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. Supervisors are encouraged to accommodate the employee’s use of accrued FLSA overtime and state compensatory time to the extent practical within university policy.
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.
State Compensatory Time
An employee may request permission to use accrued state compensatory time at any time. The use of state compensatory 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 classified employee requests to use state compensatory 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 compensatory 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 compensatory 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.
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 compensatory 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 compensatory 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 compensatory time in advance of an energy conservation day.
If an employee earns FLSA overtime or state compensatory 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 compensatory time or vacation.
A part-time classified employee generally will not accrue FLSA overtime or state compensatory 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.
REST PERIODS AND MEALTIME PROCEDURES
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.
Rest Periods – Rest periods of 15 minutes or less are considered work time and recorded as regular hours worked.
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 30 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. If an employee has a meal period of less than 30 minutes, the entire period is considered work time.
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.
RECORD KEEPING PROCEDURES
Department heads will ensure that all staff are trained to comply with one of the following processes for recording exceptions to their normal work schedule. Regardless of which method is used (a. or b. below), time should be reported weekly but no later than the end of the calendar month.
Individuals will enter time using SAP Portal Employee Self Service (ESS). Time entries are entered by the week and automatically routed to the employee’s immediate supervisor for action. Supervisors are responsible for approving time entries as soon as possible but no later than one week after receipt or notification; or,
Individuals will record time on a monthly time report, signed by the employee and immediate supervisor, with exceptions to the normal work schedule to be entered in SAP by the departmental time administrator. The departmental time administrator must complete entry by the fifth business day after the end of the month.
If late reporting does occur due to circumstances beyond the employee’s control, additional hours worked will not be accepted more than twelve months after the work was performed.
REVIEWERS OF THIS UPPS
Reviewers of this UPPS include the following:
Position Date Assistant Vice President for Human Resources June 1 E3Y Chief Diversity Officer and Director, Equity and Access June 1 E3Y Chair, Faculty Senate June 1 E3Y Chair, Staff Council June 1 E3Y
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.
Assistant Vice President for Human Resources; senior reviewer of this UPPS
Vice President for Finance and Support Services