FLSA Overtime


Employees in a position classified as non-exempt by the Office of Human Resources are eligible for FLSA overtime. Exemption status is based on duties performed, compensation and method of pay.

Earning FLSA Overtime

An employee must have prior approval from his/her manager before working hours that may result in the earning of FLSA overtime. An eligible employee who is required or permitted to work hours in excess of 40 hours in a workweek is entitled to compensation for the excess hours either as time off or, at UT System Administration’s discretion, overtime pay.

  • Hourly employees will receive FLSA overtime pay at a rate of 1.5 times their regular rate of pay.
  • Salaried employees will receive accrued FLSA overtime leave at a rate of 1.5 hours for each hour of overtime.
    • Employees may accrue up to 240 hours of FLSA overtime (equivalent to 160 hours of overtime work x 1.5 = 240).
    • Employees engaged in public safety, emergency response or seasonal activity may accrue up to 480 hours of FLSA overtime (320 hours of overtime work x 1.5 = 480 hours).

Using FLSA Overtime

FLSA overtime should be used within the fiscal year in which it was earned. To comply with earning limits or to limit the payout amount, managers may require an employee to take FLSA overtime time off in lieu of receiving accrued FLSA overtime pay. Managers may also require an employee to use FLSA overtime before vacation.

Payment for FLSA Overtime

FLSA overtime is paid only under the five circumstances listed below:

  1. FLSA Overtime Exceeds Maximum Limits — An employee must be paid all or a portion of accrued FLSA overtime when the employee’s balance exceeds the maximum accrual limit.
  2. FLSA Status Change — An employee will be paid all accrued FLSA overtime when the employee’s FLSA status changes from non-exempt to exempt.
  3. Transfer between UT System Administration Departments — An employee who transfers from one UT System Administration department to another and has an FLSA overtime balance will be paid all accrued FLSA overtime by the department from which the employee transfers.
  4. Annually — Departments will pay employees all of their accrued FLSA overtime no later than the fourth quarter of each fiscal year.
  5. Separation or Transfer of Employment — An employee who separates employment or transfers to another state agency or institution of higher education and has an FLSA overtime balance will be paid all accrued FLSA overtime. FLSA overtime will not transfer between state agencies or institutions of higher education.