The Guide was developed as a result of recurring issues noted in recent leave accounting audits conducted by the Texas State Auditor's Office. The Guide is intended to supplement existing agency policies and procedures and is an enhancement to existing manuals published by the Office of the Comptroller. Agencies and institutions of higher education in the State of Texas have more leeway than private sector organizations since their employees may be compensated for overtime hours worked using compensatory time off instead of overtime pay. Compensatory time is awarded for the additional hours they work. This includes any shift premiums paid to some state workers.
Overtime covers only time actually worked.
Employees must use their compensatory time within twelve months from the week it was earned. Subject to their supervisor's approval, an employee may request FLSA compensatory time off at any time. If an agency chooses to pay an employee for overtime hours worked and not bank the time, then it must use the regular rate of pay in effect when the employee earned the overtime. If overtime is banked and later paid, then you must use the employee's regular rate of pay at the time the employee receives the overtime payment. State comp time is earned as a result of an employee working on a state holiday.