Honorable Robert S. Calvert Opinion No. M-1252 

Comptroller of Public Accounts 

State Finance Building Re: Must a State employee who 

Austin, Texas 78701 resigns, is dismissed, or 

is separated from State 

employment be paid for all 

duly accrued vacation time, 

Dear Mr. Calvert: and related questions. 

Your request for an opinion reads as follows: 

"I hereby request your official opinion in 

answer to the following questions: 

" 1 . Must a State employee who resigns, is 

dismissed, or separated from State employment be 

paid for all duly accrued vacation time? 

"a. If the above answer is in the affirmative, when should the payment be made? 

"2. Must the salary of a line-item employee 

be paid solely from a line-item appropriation or 

may he be paid in whole or in part from monies 

which the Legislature has prohibited in whole or 

in part to be paid for salary or wages? 

"a. Sec. 10. LIMITATIONS ON USE OP OTHER 

EXPENSE FUNDS FOR PAYING SALARIES AND WAGES. Funds 

appropriated in Articles I, II, and III of this 

Act, or for the Central Education Agency in Article 

IV of this Act, in items designated for consumable 

supplies and materials, current and recurring 

operating expense or capital outlay shall be expended only for items set out in the Comptroller's 

Manual of Accounts, Expenditure Classification, 

effective Xovember 1, 1965, as amended, and numbered from i0 CO 19 for 'consumable su;?lies and 

Lmater;dlS,' 2C rl?zoug!: 25 for 'currerit and recurring 

operating expense,' and 60 to 69 for 'capital 

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Hon. Robert S. Calvert, page 2 '(M-1252) 

outlay,' It is further provided that such terms 

shall not include expenditures for personal 

services including salaries and wages, unless 

the language of those items explicitly authorizen 

such use." 

Article 6252-8a, Vernon's Civil Statutes, provides in 

part: 

"Sec. 2. Upon the death of a state employee, 

the state shall pay his estate for ali of the employee's accumulated vacation leave and for onehalf of his accumulated sick leave. The payment 

shall be calculated at the rate of compensation 

being paid the employee at the time of his death. 

"Sec. 3. Funds appropriated for salaries to 

the department or agency for which the employee 

worked shall be used in making payments provided 

for by this Act.” 

Section 7 of Article V of the current General 

Act provides in part at page V-34: 

"If a State employee transfers directly from 

one State agency to another, he shall be entitled 

to credit with the newly employing agency for 

his accumulated but unused vacation entitlement, 

provided that his employment with the State i8 

uninterrupted. A State employee who remions& 

is dismissed, or separate6 from State employment 

shall be entitled to be paid for all vacation 

time duly accrued." (Rmphasie added.) 

Appropriation 

The underlined portion of the above quoted rider did not 

appear in the General Appropriation Act beginning September 1, 

1971; instead it was provided: 

"If a State employee transfers directly from 

one State agency to another, he shall be entitled 

to credit with the newly employing agency for his 

accumulated but unused vacation entitlement, provided that his employment with the State is uninterrupted. NC empioyee of the State shall be 

craritec term;nal annsal or vacation leave subseauent to the effective day of the employee's 

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Hon. Robert S. Calvert, page 3 (M-1252) 

resignation, dismissal, or separation from State 

employment." (Emphasis added.) 

Accrued vacation entitlement is a vested right of State 

employees and of their estates. Attorney General's Opinion M-1075 

(1972) and authorities cited therein. 

It is now specifically provided that a State employee 

who resigns, is dismissed or separates from State employment "shall 

be entitled to be paid" for all vacation time duly accrued. Therefore it is our opinion that an individual who is no longer on a 

State payroll has not been fully paid all the compensation for 

services rendered the State that he is legally entitled to untii 

such individual has been paid for all vacation time which has 

accrued to such individual. 

In answer to your first question you are therefore advised that a State employee who resigns, is dismissed or separated 

from State employment must be paid for all duly accrued vacation 

time. Such payment is due and payable on the date the State employee resigns, is dismissed, or is separated from State employment, 

which should be submitted on the monthly payroll for the month 

in which the separation will occur; i.e., employment terminated 

midnight December 31st, payment is submitted on the December payroll. 

Article 6813b, Vernon's Civil Statutes, provides in part: 

"From and after the effective date of this 

Act, all salaries of all State officers and State 

employees, including the salaries paid any individual out of the General Revenue Fund, shall 

be in such sums or amounts as may be provided for 

by the Legislature in the biennial Appropriations 

Act. . . ." 

Since payment for all duly accrued vacation time is payment 

for services rendered, it is our opinion that such payment constit'utes salaries within the meaning of Article 6813b. Therefore suck 

payment may only be made from funds made available for expenditure 

by the Legislature in the Appropriations Act for salaries; i.e., 

Attorney General Department appropriation, payment for accrued vacz::cn for Assistant Attorney General, may be paid from Item 6 or .;trczr,ey General 's Operating Fund of the current Appropriations Bill. 

Er.zlo:,ees for .whom line item appropriations are made may be paid f ; r 6 : 

-,.-..l-- --.,--ii-e; vacation time from other salary funds. vi; q-3 _, You are accoi-+..~-- 

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lion. Robert S. Calvert, page 4 (M-1252) 

advised that such payment is subject to the limitation provided 

in Section 10 of Article V of the current General Appropriations 

Act relating to limitations on use of other expense funds for 

paying salaries and wages quoted in your request. 

SUMMARY 

A State employee who resigns, is dismissed, 

or separated from State employment must be paid 

for all duly accrued vacation time and such payment may be made from any appropriated funds 

available for the payment of salaries or wages. 

ORD C. MARTIN 

General of Texas 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

Marvin Sentell 

James Quick 

Bob Gauss 

Bob Flowers 

SAMUEL D. MCDANIEL 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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