Skip to content

Texas Payroll/Personnel Resource

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Overtime
Holidays or Other Paid Leave

Holidays or other paid leave taken during a workweek are not counted as hours worked in computing the number of overtime hours.

Employee Who Does Not Work More Than 40 Hours in a Workweek

If the number of hours worked plus the number of hours of holiday or other paid leave taken during the workweek exceeds 40 hours, the employee is entitled to compensatory time off at the rate of one hour off for each of the excess hours.

Example:

An employee:

  • Uses eight hours of sick leave on Monday.
  • Works 10 hours on Tuesday, Wednesday and Thursday.
    – and –
  • Works eight hours on Friday.

At the end of the week, the employee has a total of 46 compensable hours and no overtime. Of those hours, he or she accrues six hours of compensatory time.

Employee Who Works More Than 40 Hours in a Workweek Including Paid Leave

The employee is entitled to compensatory time off at the rate of one hour for each hour remaining after subtracting the hours compensable (either as regular 40 hours or overtime hours) from the sum of the number of hours worked plus the number of hours of holiday or other paid leave taken during the workweek.

Example:

An employee:

  • Works 10 hours on Monday.
  • Uses eight hours of sick leave on Tuesday.
  • Works 10 hours on Wednesday and Friday.
  • Is paid eight hours for a Thursday holiday.
    – and –
  • Works four hours on Saturday.

This gives the employee a total of 50 paid hours during the week. The employee is entitled to 10 hours of compensatory time and no overtime.

Hour-for-Hour Compensatory Time

Any compensatory time that is computed on an hour-for-hour basis instead of a 1.5-hours-for-each-hour basis must be taken during the 12-month period following the end of the workweek the compensatory time was accrued in.

The compensatory time lapses if the time is neither taken nor paid in accordance with Texas law.

Sources

Texas Government Code, Sections 659.015, 659.017; Code of Federal Regulations, Title 29.