By: Talarico H.B. No. 5404
A BILL TO BE ENTITLED
AN ACT
relating to overtime compensation for certain state employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 659, Education Code, is
amended by amending Section 659.015 to read as follows:
Sec. 659.015. OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT
TO FAIR LABOR STANDARDS ACT. (a) This section applies only to a
state employee who is subject to the overtime provisions of the
federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et
seq.) and who is not an employee of the legislature, including an
employee of the lieutenant governor, or of a legislative agency.
(b) The employee is entitled to compensation for overtime as
provided by federal law and this section. To the extent that this
section and federal law prescribe a different rule for the same
circumstance, federal law controls without regard to whether this
section or federal law prescribes a stricter rule.
(c) An employee who is required to work hours in excess of 40
hours in a workweek is entitled to compensation for the excess hours
either by:
(1) the agency allowing [or requiring] the employee to take
compensatory time off at the rate of 1-1/2 hours off for each hour
of overtime; or
(2) [at the discretion of the employing agency, in cases in
which granting compensatory time off is impractical,] the employee
receiving pay for the overtime at the rate equal to 1-1/2 times the
employee's regular rate of pay.
SECTION 2. This Act takes effect September 1, 2025.