Time Off Payment(s)
When an employee separates from the university, you'll want to make sure that they get paid for their unused time off accruals, FLSA overtime and holiday time. Check for unused balances regardless of employee type, as a student or faculty member could have unused balances from a previous position. Refer to the following resources for help in the process of paying out time off.
Eligibility for Time Off Payment(s)
The employee may be eligible for payment for accrued time off balances when they separate from the university or transfer to another Texas state agency. The following types of time off may be payable:
Vacation Time Off
If an employee transfers to another State of Texas agency with no break in service, and the employee will be in a vacation eligible position at the new agency, the vacation time off balance will be transferred to the new agency.
If the employee meets these requirements, regardless of the type of employment or length of time employed at the university, the accrued vacation time off should be paid:
- Six months continuous service with any State of Texas agency
- Separated from university employment
- Not transferring directly to another state agency.
If the employee is in a vacation time off earning position at the time of separation, payments at separation must include payment for holidays that fall after the employee's separation date, provided the vacation balance is sufficient to carry them through the holiday. When the employee transfers to a position that is not eligible for vacation time off, the vacation balance is paid, but not the holidays that fall after the separation date.
Floating Holiday Time Off
Upon separation from university employment or transfer to another state agency, an employee shall be paid for any unused floating holiday time off balance.
An employee must be compensated for any unused, banked overtime if one of the following situations occurs:
- The employee moves to a non-exempt position that is not eligible for FLSA overtime
- The employee’s pay rate changes
- The employee moves from a non-exempt to an exempt position
- The employee separates from employment
- The employee changes departments
Sick Time Off
If an employee dies, their estate is entitled to receive payment for half of the final sick time off balance or 336 hours, whichever is less. If the employee was in a vacation earning position, the payment must include payment for holidays that fall after the employee's separation date, provided the vacation and sick time off balance is sufficient to carry them through the holiday.
Paying Employees for Unused Time Off
The department should process the payment as soon as possible after an employee's separation, termination or death. Vacation time off cannot be paid to an employee or retiree who continues to be in a paid position, even if the new position is non-vacation accruing. Once an employee has a break in service, or separates from state employment, the vacation balance should be paid out at the rate in which they last earned vacation. If an employee will be continuing State of Texas employment with no break in service, the employee should transfer the vacation time off balance to the new State of Texas agency.
- Faculty do accrue floating holiday and should be paid out at the rate of pay at separation
- Faculty and students may be owed a vacation payout if they were previously employed in a staff or A&P position, and should be paid out at the rate of pay of the last vacation accruing position.
Detailed instructions for processing time off payments can be found on the Workday Time and Absence training page.
Questions regarding checks should be referred to Payroll Services at 512-471-5271.