4.15.8 Overtime for Non-Exempt Employees

A. Purpose

The purpose of this policy is to set forth guidelines for the administration of overtime provisions of the Fair Labor Standards Act (FLSA) of 1938, as amended, for non-exempt employees of The University of Texas at Tyler (UT Tyler).

B. Authority/Persons Affected

Fair Labor Standards Act of 1938, as amended, 29 U.S.C. Sections 201-219

Fair Labor Standards Act of 1938, Title 29 Section 553

Texas Government Code Chapter 659, Compensation

This policy applies to all non-exempt staff employees of UT Tyler. 

C. Definitions

Department Head: A person designated as the department head by a divisional authority, a director, college dean, vice president, or the President, as applicable.

Emergency Response Activity: This is an activity that includes the dispatching of emergency vehicles and personnel, rescue work and ambulance services. An employee must regularly engage in emergency response activities to be covered under the 480 hours of overtime credit cap. 

Exempt Employees: Employees appointed to executive, professional, administrative, or certain computer-related positions that are not subject to the minimum wage or overtime provisions of the FLSA. Whether a position is exempt depends upon its primary job duties and compliance with statutory salary requirements. The Office of Human Resources will follow FLSA regulations and guidelines to determine whether a position is exempt. 

Fair Labor Standards Act (FLSA): The federal law (29 U.S.C. §§ 201-219) that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees.

Hours Worked: Any hours that UT Tyler requires or permits an employee to work. 

Non-exempt Employee: Employees appointed to positions which do not fall under one of the exemptions found in the FLSA and whose positions are therefore subject to all provisions of the FLSA, including the overtime provisions. This includes regular and temporary (includes direct-wage and work-study employees) staff employees. 

Overtime: When the sum of hours a staff employee physically works during a workweek exceeds 40 hours. Overtime is earned on a one and one-half (1.5) time basis.

Overtime Credit: The number of hours computed by multiplying the number of overtime hours a staff employee works by one and one-half (1.5).

Public Safety Activity: In this policy, an employee engaged in a public safety activity means a person engaged in law enforcement, firefighting or related activities. A person engaged in law enforcement activities is one who:

a. is a uniformed or plainclothes member of a body of officers and subordinates who are empowered by state statute or local ordinance to enforce laws designed to maintain public peace and order and to protect both life and property from accidental or willful injury, and to prevent and detect crimes,

b. has the power to arrest, and

c. is presently undergoing or has undergone or will undergo on-the-job training and/or a course of instruction and study which typically includes physical training, self-defense, firearm proficiency, criminal and civil law principles, investigative and law enforcement techniques, community relations, medical aid and ethics. Security guards, dispatchers, radio operators, and other civilian employees of law enforcement are excluded from this definition.

Staff Employee: An employee of UT Tyler whose position is not held by faculty appointment.

Supervisor: A faculty member or employee who has direct or indirect supervisory, teaching, evaluation or advisory authority over an employee or student.

Workday: A 24-hour period beginning at 12:01 a.m. and ending at the next 12:01 a.m.

Workweek: A fixed and recurring period of seven consecutive workdays, which begins at 12:01 a.m. each Monday through 12 midnight on the following Sunday.

D. Policy and Procedures

It is UT Tyler policy to comply with the overtime provisions of the Fair Labor Standards Act (FLSA), and corresponding Texas laws. Overtime for non-exempt staff employees must be pre-approved in accordance with this policy.

  1. Recordkeeping for Overtime:  Non-exempt staff employees’ authorized overtime hours worked and hours taken off must be recorded in UT Tyler’s official time entry system.
  2. Overtime to be worked:  Except in unusual circumstances dictated by UT Tyler operations, the work activities of non-exempt staff employees shall be organized so they are not required to work more than 40 hours within a workweek.
    1. Overtime Accrual
      1. Any overtime anticipated or required of a non-exempt staff employee or group of staff employees must have the prior approval of management.
      2. Overtime approved and earned by a staff employee will be certified by the immediate supervisor on the employee’s timesheet. 
      3. Unauthorized accrual of overtime is prohibited. Violations of this policy will be dealt with as a performance matter and may warrant disciplinary action.
  3. Use of Earned Overtime:
    1. A non-exempt staff employee may not use earned overtime unless the staff employee’s immediate supervisor has granted prior approval.
    2. To the extent practicable, UT Tyler should accommodate a staff employee’s request to use earned overtime, as long as, the use will not disrupt UT Tyler operations.  
    3. Non-exempt staff employees who are on military leave should contact the Office of Human Resources, for further instruction on the use of overtime time.
  4. Cap on Overtime Balances:
    1. Non-exempt staff employees may not accrue more than 240 hours of overtime credit. Since FLSA overtime is accumulated at time and one-half, this limitation is 160 hours of actual overtime work (160 hours of overtime work x 1.5 = 240 hours). 
    2. Non-exempt staff employees engaged in public safety activity or emergency response activity in accordance with 29 U.S.C. 207(o) (3) (A) may accumulate up to 480 hours of overtime credit. Since FLSA overtime is accumulated at time and one-half, this limitation is 320 hours of actual overtime work (320 hours of overtime work x 1.5 = 480 hours). 
    3. Earned overtime hours do not expire. 
    4. UT Tyler shall pay a non-exempt staff employee for the number of approved overtime hours that the staff employee works that cause the staff employee to exceed the maximum overtime credit that he or she may accumulate under this policy. 
  5. Compensation of Overtime:  UT Tyler will compensate overtime earned by non-exempt staff employees as follows:
    1. The staff employee must take off authorized overtime worked at the rate of 1.5 hours for each hour over 40 hours that he or she physically worked during the workweek. NOTE: UT Tyler’s official time entry system will display banked balances as converted overtime hours, i.e., 1.5 times basis.
    2. The immediate supervisor retains the right to determine a staff employee’s work schedule during any workweek to permit the staff employee to take off banked overtime hours.
    3. When a staff employee’s status changes from non-exempt to exempt, the staff employee’s overtime balance will be paid to the staff employee by the department in which the overtime was earned. 
    4. By payment for each hour over forty (40) actually worked in a work week at a rate of one and one-half (1.5) times the employee's regular rate of pay. The regular rate of pay shall include the employee's base salary and longevity pay, hazardous duty pay, housing emoluments, and FICA benefit replacement pay. See HOP, 4.6.6, Payroll Payments and Payday, for procedures for payment for overtime.
  6. Transfers/Separations of Employment:  A non-exempt staff employee’s unused accumulated (banked) FLSA overtime hours must be paid when the staff employee separates employment with UT Tyler or transfers to another state agency or institution of higher education.

E. Responsibilities

See Policy and Procedures section.

F. Review

This policy shall be reviewed by Human Resources every five years or as legislation changes.

AMENDED:  02/2019