The federal Fair Labor Standards Act (FLSA) determines whether employees are subject to or exempt from minimum wage and overtime provisions. If employees are non-exempt, they must receive overtime pay for working more than 40 hours in a week. In addition to the federal overtime requirements for non-exempt employees, state law also allows both non-exempt and exempt employees to earn state compensatory time when the total number of hours worked plus the total number of hours of paid leave recorded on their time entry calendar exceeds 40 hours per week.
Overtime, Federal Compensatory Time, and State Compensatory Time
Employees are eligible for additional compensation when they work more than their scheduled hours during a workweek.
If they're non-exempt under the FLSA, they're entitled to federal compensatory (FLSA comp) time or or overtime pay at time-and-a-half for all hours actually worked in excess of 40 in a week. When overtime is banked for future use as time off, it is referred to as federal compensatory time. Under state law, whether they're exempt or non-exempt, they may receive straight-time comp time when the hours they worked, including their paid leave, holiday and comp time, totals more than 40 hours. If they're non-exempt, they may receive pay instead of straight-time comp time.
Using and Banking FLSA Comp Time
Prior to performing work that will result in federal overtime or state compensatory time, the employee should seek approval from their supervisor.
Departments may allow employees to bank FLSA comp time. This means comp time doesn't have to be used during the pay period when it was earned. If employees have comp time left at the end of the fiscal year, they'll be paid for the time.
For more details, please refer to State Compensatory Time and Overtime (Federal Compensatory Time).
Comparison of FLSA Overtime and State Compensatory Time
| Item | FLSA Overtime | State Overtime |
|---|---|---|
| Authority | Federal Fair Labor Standards Act (FLSA) | State Government Code |
| Eligibility | Non-exempt employees | All employees |
| Definition | Work more than 40 hours in a workweek | Record more than 40 hours of paid time in a workweek |
| Compensation | Time off or pay at the rate of "time-and-a-half" | Time off at the "straight-time" rate; non-exempt employees may receive equivalent pay rather than time off |
| University policy/practice | Grant time off or pay in following pay period | 12 months to use or forfeit |
| Unit policy | Recommend unit policy on accrual and use of overtime | Recommend unit policy on accrual and use of compensatory time |
| Part-time non-exempt | Receive overtime compensation if work more than 40 hours in a workweek | Receive pay at the regular hourly rate for hours worked in excess of scheduled hours up through 40 |
| Part-time exempt | Not eligible for overtime compensation | May receive pay at the regular hourly rate for hours worked in excess of scheduled hours up through 40 or receive equivalent state compensatory time |