Lump-Sum Payment of Accrued Vacation Time
Compensation Rates
Rate of Compensation
A state employee’s rate of compensation includes base pay, plus any emolument or stipend provided as a salary supplement in lieu of base pay.
A special item of compensation (such as housing, utilities, clothing and cleaning) may not be included in the employee’s rate of compensation, unless it was provided in lieu of base pay.
The amount of benefit replacement pay included must be determined in accordance with requirements of the Comptroller’s office.
Neither longevity pay nor hazardous duty pay may be included in the employee’s rate of compensation.
Applicable Hourly Rate of Compensation
An employee’s rate of compensation must be expressed as an hourly rate for each month or part of a month included in the allocation of the employee’s accrued vacation time.
The hourly rate of compensation for a particular month is calculated by dividing monthly salary by the number of working hours in a month.
The number of working hours in a month will vary from month to month, depending on the number of workdays in the month for a Monday-through-Friday, 40-hour-per-week employee. Workday is defined as any day except Saturday, Sunday, or a state or national holiday.
Source
Texas Government Code, Sections 661.061-661.067, 661.091-661.094.