3.222 Human Resources
Date Adopted/Most Recent Revision: 02/17/2012

A.     General Policy

It is the policy of Midwestern State University to organize and schedule its activities in such a manner that an employee shall not be required to work in excess of the establish work week, except when occasional operating necessities demand.

B.     Definition of Overtime

Overtime is all authorized time worked by an employee that is in excess of forty (40) hours during a work week. Overtime is computed on actual hours worked, and any paid leave time is excluded.

C.    Compensation for Overtime

The Fair Labor Standards Act (FLSA) is now applicable to higher education. The following is in accordance with the State Appropriations Act and the 1985 Amendments to the FLSA.

1.     Non-Exempt Employees

a.     State law sets the standard work week for regular full-time salaried employees at forty (40) hours. If non-exempt employees subject to the FLSA are required or permitted to work additional hours, they are entitled to compensation for the overtime.

b.     Overtime accruals should be utilized by August 31 of each year. An employee who requests use of compensatory time earned will generally be permitted to use such time within ninety (90) days of the request.

c.     Employees may, at their option, undertake employment with MSU on an occasional or sporadic basis in a different capacity than their regular employment. Such hours will not be counted as hours worked for overtime purposes on their regular job. Hours worked by employees in the same capacity as their regular job will be counted for overtime purposes.

d.     Federal Overtime. If actual hours worked in the work week exceed forty (40) hours, the university may allow or require an employee to take time off at the rate of one and one-half times the overtime hours worked. These hours can be accrued or "banked" up to maximums of 480 hours (320 at time and one-half) for law enforcement personnel and 240 hours (160 at time and one-half) for all other non-exempt personnel. At the discretion of the university, employees will be paid in cases where: the granting of time off is impractical, the employee terminates with the university, a twelve-month period following the end of the work week the overtime occurred has passed, or the employee has reached the maximum balance permitted (240 or 480). Compensation will be paid to the employee at the regular rate of pay earned by the employee at the time of payment.

e.     Employees with banked hours must use these hours as time off or receive compensation not later than the end of the fiscal year following the fiscal year in which the hours were earned.

f.      State Overtime. In situations where the employee has not worked more than forty (40) hours in the work week, but the total number of hours worked, paid leave taken, and holidays exceeds forty (40) hours, the employee shall be allowed equivalent time off during the twelve-month period following the of the work week. Hours accrued as equivalent or "state" compensatory time must be accounted for separately from banked "federal" overtime hours. These "state" compensatory hours must be used during the twelve-month period following the end of the work week in which they were earned. Equivalent or "state" compensatory time may not be carried forward past the end of the twelve-month period and an employee may not be paid for the unused time. As an exception to the provisions in this paragraph, however, employees of institutions of higher education may be paid for compensatory time hours on a straight-time basis when the taking of compensatory time off would be disruptive to normal teaching, research, and other critical functions.

g.     The university may elect to pay non-exempt employees at the federal overtime rate of time and one-half for all hours worked at athletic events and for all hours worked at events hosted on campus by sources outside of the university.  No federal or state appropriated funds may be used to pay employees for state overtime hours (1.0) when paid at the federal overtime rate (1.5).

2.     Exempt Employees

a.     Employees who meet the FLSA criteria for Executive, Professional, or Administrative Positions are not subject to the provisions of the FLSA and are generally exempt from the accrual of overtime.

b.     In special circumstances with the President�s approval, exempt employees may be allowed compensatory time off for hours in excess of forty (40) hours in a work week in which the combination of hours worked, paid leave, and holidays exceeds a total of forty (40) hours. An exempt employee may be allowed compensatory time off during the twelve-month period following the end of the work week in which the overtime was accrued, at a rate not to exceed equivalent time. Exempt employees may not be paid for any unused compensatory time.
(Texas Government Code 659.015-659.016, Overtime Compensation.)