Lump-Sum Payment of Accrued Vacation Time

Eligibility for State Employees

State employees (defined as full-time and part-time employees or officers; hourly employees; temporary employees; employees of the Teacher Retirement System of Texas, Texas Education Agency, Texas Higher Education Coordinating Board, Texas School for the Blind and Visually Impaired, Texas School for the Deaf, Texas Juvenile Justice Department, Windham School District, or the Department of Assistive and Rehabilitative Services; or classified, administrative, faculty or professional employees of a state institution or agency of higher education) are entitled to be paid for the accrued balance of their vacation time if:

• The employee resigns, is dismissed or otherwise separates from state employment.
• The employee has accrued six months of continuous state employment at any time during the employee’s lifetime.
  – and –
• The employee is not reemployed by the state in a position under which the employee accrues vacation leave during the 30-day period following the effective date of the employee’s separation from state employment. This does not apply to state employees who were employed by an institution of higher education at the time of separation from the state.

State employees who hold at least two positions and separate from one that accrues vacation time are entitled and eligible to be paid only for the vacation time credited to the position the employee separates from.

Eligibility for State Employees of Institutions of Higher Education

A state employee who has accrued six months of continuous state employment at any time during the employee’s lifetime, and who resigns, is dismissed or otherwise separates from state employment by an institution of higher education, is entitled to be paid for the accrued balance of the employee’s vacation time as of the date of separation.

Source

Texas Government Code, Sections 661.061-661.067, 661.091-661.094.