4.15.8 Overtime Compensation

A. Purpose

The purpose of this policy is to set forth guidelines to be followed to comply with the Fair Labor Standards Act (FLSA), and applicable state personnel policies related to the accrual of and compensation for overtime.

B. Persons Affected

All non-exempt employees

C. Definitions

N/A

D. Policy and Procedures

This policy sets forth guidelines to be followed to comply with the Fair Labor Standards Act (FLSA), and applicable state personnel policies related to the accrual of and compensation for overtime.

  1. Time Records

    The University of Texas at Tyler is required by the Fair Labor Standards Act to maintain accurate time and leave records for all non-exempt employees. Departments may maintain time records for exempt employees.

  2. Fair Labor Standards Act

    1. Requirements

      The FLSA requires The University of Texas at Tyler to compensate non-exempt employees for any hours over forty (40) actually worked in one work week at a rate of one and one-half (1.5) times the employee's normal rate of pay. This requirement is applicable to all employees except for those in positions classified as executive, professional, or administrative which are exempted from FLSA overtime provisions, as outlined in Policy Number II.110 (Revision 2).

    2. Overtime Compensation

      All non-exempt employees who are required or permitted to work in excess of forty (40) hours in a work week shall be entitled to additional compensation in one of the following ways:

      1. By receiving compensatory time off at a rate of one and one-half (1.5) hours for each hour over forty (40) actually worked (paid leave or holidays taken during a work week are not to be counted as hours worked in determining FLSA overtime hours) subject to the following limitations:

        a) Employees engaged in public safety or emergency response may not accrue more than 480 hours of compensatory time, (320 overtime hours plus 160 premium hours). Employees must be paid for any overtime hours worked in excess of the accumulation limit at a rate of one and one-half (1.5) times the employee's regular rate of pay.

        b) All other non-exempt employees may not accrue more than 240 hours of compensatory time, (160 overtime hours plus 80 premium hours). Employees must be paid for any overtime hours worked in excess of the accumulation limit at a rate of one and one-half (1.5) times the employee's regular rate of pay.

        Accrued compensatory time may be used by employees at a mutually convenient time following the work week in which such compensatory time is accrued. An employee has the right to use compensatory time earned, and time accrued under the FLSA may not be forfeited. In certain circumstances, the University may require employees to schedule compensatory time off that has been accrued.

      2. 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. Payment for overtime is at the discretion of the component institution and may be granted in instances in which granting compensatory time is not practical.

    3. Schedule of Activities

      The schedule of activities shall be so organized that employees are not routinely required to work in excess of established work periods except when demanded by operational necessity. Any overtime services required of non-exempt employees must have the prior written approval of the chief administrative officer or his or her delegate.

    4. Payment of Compensatory Time Upon Separation

      Employees or the estates of deceased employees must be paid for any unused accumulated (banked) FLSA overtime hours at the time of termination of University of Texas at Tyler employment. There is no authority to transfer unused accumulated FLSA overtime hours between component institutions or state agencies.

  3. Equivalent Time

    Equivalent time, also known as state compensatory time, should not be confused with FLSA compensatory time discussed above. Equivalent time is granted on a straight hour for hour basis or paid on a straight regular hour pay rate.

    1. Equivalent time occurs when:

      1. the total number of hours worked and paid leave or paid holidays exceed 40 hours in one work week. In such instances, the employee shall be allowed equivalent time off equal to the number of hours in excess of 40, or

      2. an employee who is exempted from the overtime provisions of the FLSA as an executive, professional, or administrative employee may, at the discretion of the chief administrative officer or his or her delegate, be allowed equivalent time off for any hours recorded in excess of 40 during one work week. These hours may be a combination of working hours, paid leave, and holidays.

    2. Use of Equivalent Time

      1. Equivalent time must be used within 12 months following the end of the work week in which it was earned.

      2. Normally, employees will not be paid for any unused equivalent time, subject to the exceptions provided below.

      3. The interagency transfer of unused equivalent time is not authorized. Normally, the estate of a deceased employee may not be paid for the employee's earned but unused equivalent time, subject to the exceptions provided below.

    3. Exceptions for Equivalent Time

      Employees of institutions of higher education may be paid for equivalent time hours on a straight hour for hour basis when the taking of such time off would be disruptive to normal teaching, research, and other critical functions, if such payment is authorized by the chief administrative officer or his or her delegate. These employees are excepted from the requirement that all equivalent time must be used within 12 months.

    4. Equivalent time and compensatory time balances must be recorded separately and should not be combined.

  4. Overtime Entitlement for Occasional Employment

    A full-time employee may work, at his or her option, for The University of Texas at Tyler on an occasional and sporadic basis in a part-time job. If the work performed in the occasional job is substantially different from the regular full-time work, the hours worked in the part-time capacity are excluded in calculating overtime compensation.

E. Responsibilities

See Policy and Procedures section.

F. Review

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

ORIGINALLY APPROVED:  12/01/2001

LAST AMENDED:  04/22/2009

REVIEWED:  AY 2014-15