Handbook of Operating Procedures 5-4010

State Compensatory Time

University of Texas SealEffective August 29, 2013
Executive Sponsor: Vice President for University OperationsPolicy Owner: Assoc. Vice President for Human Resources
I. Policy Statement 

The University of Texas at Austin (“University”) permits eligible employees to earn and use state compensatory time as provided by state law.

II. Reason for Policy 

To provide for the administration of state compensatory time as set forth in state law.
 

III. Scope & Audience 

This policy applies to both exempt and non-exempt employees as defined by the Fair Labor Standards Act. This policy applies to Code 1000 (administrative and professional) and classified employees of the University. It does not apply to faculty employees or those positions that require student status as a condition of employment.
 

IV. Definitions (specific to this policy) 
Fair Labor Standards Act (FLSA):

Establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Exempt employees:

Employees exempt from the Fair Labor Standards Act under an Executive, Professional or Administrative exemption.

Non-exempt employees:

Employees who are entitled to the minimum wage and/or overtime pay protections of the FLSA.

Standard workweek:

A fixed and recurring period of seven consecutive 24-hour days. The University’s workweek begins at 12:01 a.m. Monday and ends at 12:00 midnight Sunday. The University’s regular workweek for full-time employees is eight hours a day (plus an optional meal period) on five consecutive days from 8:00 a.m. to 5:00 p.m. Adjusted work schedules may be approved for part-time employees, shift employees and employees occupying positions which require a workweek other than five days.

Hours worked:

Any hours that the University requires or permits an employee to work. As used in this policy, hours worked may also be referred to as work time.

Standard workday:

The 24-hour period beginning at 12:01 a.m. and ending at 12:00 midnight. Working more than eight hours in a workday does not constitute overtime. Fair Labor Standards Act (FLSA) overtime occurs only after actually working more than 40 hours in a workweek.

V. Website (for policy) 
http://www.policies.utexas.edu/policies/hop/5-4010
VI. Contacts 
Contact Details Web
Human ResourcesPhone:(512) 471-4772Website:
VII. Responsibilities & Procedures 
  1. Earning of State Compensatory Time
  1. State Compensatory Time As Defined Under State Law. State compensatory time is earned when the total number of hours recorded on the weekly timesheet as worked plus the total number of hours of paid leave or paid holidays exceeds 40 hours in one workweek. State compensatory time is earned after the time for the entire workweek is recorded. State compensatory time is earned on a straight time, hour for hour, basis. State compensatory time can be earned by both exempt and non-exempt employees.
  1. State Compensatory Time for Exempt Employees.
  1. Full-time exempt employees may not be paid for earned state compensatory time.
  1. Part-time exempt employees may accrue state compensatory time for the number of hours that exceed the hours for which they are appointed, if the hours worked and hours of other paid leave and/or paid holiday time exceed the number of hours for which he or she is appointed. A part-time exempt employee who works hours in excess of their appointed work hours can either be paid for the hours worked or earn state compensatory time.

Example: An exempt employee, who is appointed to work 20 hours per week, works a total of 25 hours in a given workweek. The employee can be paid for the additional five hours worked, at straight time, or receive five hours of state compensatory time, also at straight time.

 

  1. State Compensatory Time for Non-exempt Employees.
  1. An occasion may occur when a full-time non-exempt employee works more than 40 hours in a workweek and the total hours worked, plus hours of paid leave or paid holidays, exceeds 40. To determine if the employee has earned any state compensatory time, subtract the FLSA overtime hours worked from the total hours recorded. The employee receives state compensatory time for the remaining hours over 40. A non-exempt employee does not receive both FLSA overtime pay and state compensatory time for the same hours.

Example: An employee whose work schedule is Monday through Friday, works eight hours on Monday, on Tuesday works four hours and uses four hours of sick leave. The employee works eight hours on Wednesday, Thursday and Friday. On Saturday, the employee works eight hours. Total hours recorded is 48. Total hours worked is 44. FLSA overtime is four hours. Subtract the FLSA overtime (four hours) from the total hours recorded (48), for a remaining total of 44 hours. The four hours in excess of 40 indicates that the employee also earns four hours of state compensatory time.

 

  1. Full-time non-exempt employees may be paid for state compensatory time hours when the taking of earned state compensatory time would be disruptive to normal teaching, research, or other critical functions.
  1. Part-time non-exempt employees may not accrue state compensatory time if the hours worked and hours of other paid leave and/or paid holiday time do not exceed 40 in a workweek. Part-time non-exempt employees must be paid for the hours worked over their appointed work hours; they may not accrue state compensatory time.
  1. Earning of State Compensatory Time on Holidays. When an exempt or non-exempt employee who is eligible for holiday pay is scheduled to work on a holiday, in addition to receiving pay for the holiday, he or she also receives straight-time state compensatory time for hours worked on the holiday. Supervisors and employees will work together to allow employees to use earned holiday state compensatory time within 12 months from the week when it was earned. Exempt or non-exempt employees may be paid for state compensatory time earned on holidays only if it is determined that allowing compensatory time off would disrupt normal teaching, research, or other critical functions.
  1. Guidelines for Earning of State Compensatory Time
  1. Place of Employment. An employee may earn state compensatory time for work performed only at his or her regular or temporarily assigned place of employment. An employee’s personal residence may be considered the regular or temporarily assigned place of employment and he or she may earn state compensatory time for work performed at such residence, subject to advance approval by the employee’s dean, director, or equivalent administrative officer hereby authorized to implement this subsection as the president’s designee.   
  1. Travel for Official University Business.
  1. Employees can earn a limited amount of state compensatory time, not to exceed two hours, for the time spent traveling to and from the business destination.
  1. Employees can earn state compensatory time for meetings held outside of the normal business day. This does not extend to social activities held in conjunction with conferences or other events.
  1. Time-Driven Projects. With prior supervisory approval, employees who are assigned projects that exceed normal expectations and have specific due dates may earn state compensatory time for time spent working on the project in order to meet the due date.
  1. Vice President/Dean Guidelines. Vice Presidents and Deans have discretion, within these policy guidelines, to develop additional guidelines within their portfolio for earning of state compensatory time. Some examples of additional guidelines are:
  1. State compensatory time cannot be earned for reading or responding to email outside of the normal workday.
  1. State compensatory time can be earned for business meetings held during the lunch period, if no additional lunch period is taken on the same workday.
  1. Cap on Earnings Balance. An employee’s state compensatory time balance cannot exceed 144 hours OR the employee’s current sick leave balance, whichever is higher.
  1. Transfer of Earnings Balance. An employee transferring from one UT Austin department to another can transfer a state compensatory balance of up to 144 hours to the new department.
  1. Use of State Compensatory Time
  1. Administrative and Professional (Code 1000) Staff. Administrative and professional staff can use up to a maximum of 20 hours of state compensatory time in a workweek with prior supervisory approval.
  1. Use of 20 hours per week of state compensatory time cannot exceed two consecutive workweeks.
  1. Use of state compensatory time during a workday or a workweek can be augmented by the use of other accrued and available leave.

Example: An employee using the maximum of 20 hours of state compensatory time in a given workweek may also use 20 hours of accrued and available annual leave for a total of 40 hours absent time.

 

  1. Classified Staff. Classified staff can use up to 40 hours of state compensatory time in a workweek with prior supervisory approval.
  1. Use of 40 hours per week of state compensatory time cannot exceed two consecutive workweeks.
  1. Use of state compensatory time during a workday or a workweek can be augmented by the use of other accrued and available leave.

Example: An employee using four hours of state compensatory time on a given day may also take four hours of accrued and available annual leave for a total of eight hours absent time.

 

  1. Employees Separating from the University. An employee separating from the University can use up to 40 hours of state compensatory time during their last week on the payroll.
  1. Employee Responsibilities
  1. The employee shall request to use state compensatory time through his or her supervisor.
  1. The employee promptly and accurately records on the weekly time report all time worked plus use of paid leave or paid holiday time and the use of state compensatory time.
  1. An Administrative and Professional (Code 1000) employee accounts for time on a weekly basis, according to prior arrangements with the supervisor.
  1. A Classified employee accounts for time on a daily basis, according to a work-schedule previously agreed upon with the supervisor.
  1. Supervisor and Department Responsibilities

The supervisor must review and approve the use of state compensatory time, verify the employee has accurately recorded the use of the time on the time report, and sign the electronic or paper time report.


The department shall maintain the monthly Report of Vacation and Sick Leave of all employees who take state compensatory time.

 

  1. Loss of Unused State Compensatory Time Balances

Under state law, an employee must use state compensatory time, including holiday compensatory time, within the 12 months following the end of the workweek in which it was earned, or it lapses.
 

  1. If an employee wishes to use state compensatory time that may soon lapse, he or she may submit a written request for permission to use the time to their supervisor not later than the 90th day before the date the compensatory time will lapse. The supervisor shall approve in writing the employee’s request or provide the employee with an alternate date on which the employee may use the compensatory time.
  1. State compensatory time must be both requested and used before the date it is due to lapse. Supervisors are encouraged to accommodate, to the extent practicable, the employee’s use of state compensatory time.
  1. Delegation of Authority

Authority is hereby delegated to the Vice President or Dean to develop additional guidelines for earning of state compensatory time and approve use of the time earned.

VIII. Form & Tools 
XI. History 

Last review date: August 2013
Next scheduled review: August 2015