When an employee separates from the University or experiences eligibility changes, you'll want to make sure that they get are automatically paid for their unused time off accruals, FLSA overtime, and holiday time.
Eligibility for Time Off Payment(s)
The employee may be eligible for payment for accrued time off balances when they separate from the University, experience eligibility changes, 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 will be automatically paid:
- Six months of continuous service with any State of Texas agency, and
- Transferred to a non-vacation eligible position, or separated from University employment, and
- 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 will 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 transferring to a non-eligible position, separation from University employment, or transfer to another state agency, an employee will be automatically be paid for any unused floating holiday time off balance.
FLSA Overtime
An employee will be automatically compensated for any unused, banked overtime if one of the following situations occurs:
- The employee moves from a non-exempt to an exempt position
- The employee changes departments
- The employee separates from employment
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 automatic payment will 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
Automatic payment will commence when all timesheets are submitted and approved upon eligibility changes, an employee's separation, a change requiring FLSA overtime payment, or death. The balances will automatically be paid at the rate of pay at the loss of eligibility or separation. If an employee will be continuing State of Texas employment with no break in service, the employee should transfer the vacation time off (and sick time off) balance to the new State of Texas agency.
Important Notes:
- Faculty do accrue floating holiday and will be automatically paid at the rate of pay at loss of eligibility or separation.
- Faculty and students owed a vacation payout because they were previously employed in a staff or A&P position, will be automatically paid out based on the current rate of pay.
Check Payments
Questions regarding checks should be referred to Payroll Services at 512-471-5271.