Untitled Texas Attorney General Opinion

The Attorney General of Texas thy 19, 1986 JIM MAlTOX Attorney General Supreme Cowl BulldInS Mr. Vernon M. Arrell Opinion No. JM-491 P. 0. BOX 12545 Austin. TX. 75711. 2545 Comieeioner 512/4752501 Texas Rehabilitation Commission Re: Whether a state agency may Telex 9101874.1367 118 East Riverside Drive require Its employees to take Telecopier 5121475.0255 Austin, Texas 78704 compensatory time in lieu of overtime pay 714 Jackson, Suite 700 Dallas. TX. 75202.4505 Dear Mr. Arrell: 214/742-8944 You ask whl?ther a conflict exists between the provisions of section 2f(l) of article V of the current General Appropriations Act, 4824 Alberta Ave., Suite 160 El Paso, TX. 79905.2793 Acts 1985. 69th 'Leg., ch. 980, at 7759, and the Fair Labor Standards 915/533-3484 Act of 1938, 29 U.S.C. 5201 et seq. (hereinafter FLSA). You wish to knov whether a stste agency may allow or require an employee to take compensatory tine off for overtime instead of paying overtime 1001 Texas, Suits 700 compensation. Houston, TX. 77002~3111 713/2235885 Section 2f(l) provides, in part: 806 Broadway, Suite, 312 f. OVI!F:TIME. (1) Employees Subject to FLSA. An Lubbock, TX. 79401.3479 employm who is subject to the overtime provisions 505l747.5235 of the Fair Labor Standards Act of 1938, 29 U.S.C. Sets. :201 et seq.. (FLSA) is entitled to 4309 N. Tenth. Suite S compen~ia~tionfor overtime as provided by this McAllen, TX. 78501.1685 subdiv:.sion. 5121682.4547 An employee who Is required to work hours in 200 Main Plaza, Suite 400 excess of 40 hours in a workweek is entitled to San Antonio. TX. 782052797 cmpenwtion for the excess hours either by: 51212254191 (A) the agency allowing (or requiring) the An Equal OpportunityI employw to take compensatory time off during the Affirmative Action Employer same p,~y period, at the rate of 1% hours off for each hour of overtime; or (B) at the discretion of the employing agency, in cases In which granting compensatory time off is imp::actical.the employee receiving pay for the overtim: at the rate equal to 1% times the employw's regular rate of pay. (Emphasis added). p. 2239 Ur. Vernon M. Arnell - Page 2 (JM-491) The PLSA was amended ,cecentlyto specify that a public employer may provide an employee with time off, at a rate of 1% hours of time off for each hour of overtime, in lieu of overtime pay under certain circumstances. See Fair :,abor Standards Amendments of 1985, Pub. L. 99-150, §Z(a)(l)T Z,tat. (1985). These amendmer.ts took effect April 15. 19K 'Id .-A The985 amendments also affected the applicability of section 2f(l)(A) with regard to the time period during which time off musk:be taken. Attorney General Opinion m-475 (1986). Opinion JM-475 atldressedhow the 1985 amendments to the FLSA affected sectlons 2f(l) and 2f(4) of the current appropriations act. Section 2f(4) is a "contic,gencyprovision," contingent upon amendments to the FLSA. Section 2f'(4) allows overtime time off to be taken during the 12-month peric'd after the week in vhich the overrime accrued. Opinion m-475 concluded that state agencies may allov or require an employee to tak#e time off, at a rate of 1% hours for each hour of overtime, during xhe 12-month period following the end of the workweek for overtime incurred on or after April 15, 1986. Accordingly, your question with regard to policy and practice after April 15 is answered in Qll.nionm-475. You are also concexaed with potential liability for overtime policy and practice In effect prior to April 15. A state agency's practice of allowing or requiring an employee to take time off in lieu of overtime pay, pursuant to section 2f(l), prior to April 15 does not conflict wirh the FLSA. As it was applicable prior to April 15, section 2f(l) authorized a state agency to allow or require its employees "to take compensatory time off during the same pay period, at a rate of 1% hour s ofji for each hour of overtime." As indicated, Opinion JM-475 determine3 that, because of the legislative intent expressed in section 2f(4) and because of the 1985 amendments to the FLSA. compensatory time off for overtime incurred after April 15 need not be limited to the samlapay period. The "same pay perioi." requirement was initially included by the Texas Legislature only kn an effort to comply with the RSA as required by the United St.ates Supreme Court In Garcia v. San Antonio Netrogolltan Transit Authority, 105, S. Ct. 1005. U.S. (1985). See Opinion m-475. Court interpretations ofthe versicnE the FLSAX effect when Garcia was decided indicated that the act allowed compensatory time off in lieu of payment only if time off was granted during the same pay period. See Dunlop v. New Jersey, 522 F.2d 504. 511 (3d Cir. 1975). vacated3 remanded on other grounds for consideration of Natj.onalLeague of Cities sub nom New Jersey v. Uaery, 427 U.S. 909 (19:;21);Attorney General Opinion H-382 (1974). Accordingly, the pracrice of allowing or requiring an employee to take compensatory time off for overtime worked in lieu of paying overtime compensation under certain circumstances is not inconsistent with the FLSA either as it existetlprior to April 15 or as amended. See also p. 2240 Mr. Veruon l4.Arnell - Paglr3 (JM-491) Pub. L. 99-150. 12(c) (llmltation of liability of states and political subdivisions for actions prior to April 15. 1986). SUMMARY A state agency's practice of alloving or requiring an emp'loyee to take compensatory time off for overtime in lieu of paying overtime compensation under certain circumstances is nor inconsistent with the FLSA as it existed prior to April 15 or as am,ended. J-h Very truly your . JIM HATTOX Attorney General of Texas JACK RIGBTOWER First Assistant Attorney General MARY KELLER Executive Assistant Attorney General ROBERT GRAY Special Assistant Attorney,General RICR GILPIN Chairman, Opinion Consnittt:e Prepared by Jennifer Riggs; Assistant Attorney Genera1 p. 2241