Item 4E - Memo ITEM 4E
CITY OF
SOUTH LAKE
MEMORANDUM
March 30, 2026
TO: Alison Ortowski, City Manager
FROM: Stacey Black, Assistant City Manager/ Sr. Director of Human Resources
SUBJECT: Resolution No. 26-012, amending Section 603 — "Overtime and
Compensatory Time" of the City of Southlake Employee Handbook and
providing an effective date.
Action
Requested: The purpose of this item is to seek City Council approval of Resolution
No. 26-012, amending Section 603 — "Overtime and Compensatory
Time" of the City of Southlake Employee Handbook to align the overtime
threshold for fire shift personnel with the Fire Department's transition
from a 24-hour on / 48-hour off (24/48) shift schedule to a 48-hour on /
96-hour off (48/96) schedule, effective June 20, 2026.
Background
Information: The City's Employee Handbook contains all personnel policies approved
by both the City Council and the City Manager. In accordance with
Section 4.14 of the City Charter, the City Council must approve any
personnel policies that carry financial implications. The City Manager
retains the authority to approve administrative updates or policies
without financial impact, provided that City Council is notified of such
changes.
Effective June 20, 2026, Fire Department shift personnel will transition
to a 48/96 shift schedule. This schedule is now the prevailing regional
standard among peer fire departments and is designed to enhance
firefighter well-being, improve work-life balance, and strengthen the
City's ability to recruit and retain highly qualified personnel. The
transition does not impact service levels, staffing coverage, or
emergency response delivery. Staff is coordinating implementation
across payroll, policy, HR systems, and departmental processes to
ensure a seamless transition across all affected areas.
Under the Fair Labor Standards Act (FLSA), the overtime threshold for
fire personnel operating under Section 207(k) is based on the length of
the established work period. The current policy reflects a 15-day work
cycle and the corresponding overtime threshold of 114 hours. The
proposed amendment updates the policy to reflect the new 12-day work
cycle and establishes an overtime threshold of 91 hours, consistent with
federal wage and hour requirements. This adjustment reflects a
proportional change based on the shorter work period and does not
Alison Ortowski, City Manager ITEM 4E
March 30, 2026
Page 2
result in additional costs. These revisions ensure the City's overtime
policy remains compliant with the FLSA and accurately reflects the Fire
Department's updated work schedule.
The proposed revisions to Section 603 - Overtime and Compensatory
Time are summarized below:
• Update the overtime threshold for sworn fire shift personnel from 114
hours during a 15-day work period to 91 hours during a 12-day work
period, consistent with FLSA Section 207(k).
• Clarify that overtime eligibility is determined based on the applicable
work period established for each employee group in accordance with
Policy 602 - Work Week and Pay Periods.
• Retain all other provisions of the policy as currently written, including
overtime thresholds for civilian and sworn police personnel.
This adjustment applies only to fire shift personnel affected by the
schedule change.
If approved, the revised policy will take effect June 20, 2026. It will be
published in the City's Employee Handbook and communicated to all
affected employees.
Financial
Considerations: This amendment has no net financial impact. While the overtime
threshold decreases from 114 hours to 91 hours over a shorter 12-day
work cycle, the number of hours in each work cycle decreases
proportionally.
Strategic Link:
• Focus Area: Performance Management and Service Delivery
• Corporate Objectives:
- L1: Defining and managing a professional workplace culture that
supports City values and promotes a positive employee
experience.
- L3: Attracting, developing & retaining a talented and motivated
workforce for lasting world-class performance.
Citizen Input/
Board Review: N/A
Legal Review: The City Attorney has reviewed the proposed revisions to the Overtime
and Compensatory Time policy.
Alternatives: Make changes as desired by City Council.
Deny the request and maintain the current approved policy.
Alison Ortowski, City Manager ITEM 4E
March 30, 2026
Page 3
Supporting
Documents:
Attachment A: Resolution No. 26-012
Attachment B: Redlined Policy No. 603 — Overtime and Compensatory
Time
Staff
Recommendation: Staff recommends City Council approval of Resolution No. 26-012,
amending Section 603— "Overtime and Compensatory Time" of the City
of Southlake Employee Handbook and providing an effective date.
RESOLUTION NO. 26-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, AMENDING SECTION 603 —
"OVERTIME AND COMPENSATORY TIME" OF THE CITY
OF SOUTHLAKE EMPLOYEE HANDBOOK AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake (the "City") previously adopted an Employee
Handbook; and
WHEREAS, the City wishes to revise Section 603 — "Overtime and Compensatory
Time" to replace Section 603 of the previously adopted Employee Handbook;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
Section 1. The City of Southlake hereby approves and adopts the following policy that
has financial implications, a copy of which is attached as Exhibit "A" and is incorporated
into the Employee Handbook:
Policy 603 — "Overtime and Compensatory Time"
Section 2. That this resolution is in effect upon passage and adoption by the City
Council effective June 20, 2026.
PASSED AND APPROVED THIS THE DAY OF
2026.
Shawn McCaskill, Mayor
ATTEST:
Amy Shelley, City Secretary
CITY OF RESOLUTION NO. 26-012: EXHIBIT A
SOUTHLAKE
603—OVERTIME AND COMPENSATORY TIME
603.01 Policy.Overtime compensation shall be paid to all non-exempt employees in accordance with
federal and state wage and hour requirements. Exempt employees shall not be paid overtime
compensation.
603.02 Eligibility. All non-exempt employees are eligible for overtime compensation. Employees in
positions that are designated as exempt under the Fair Labor Standards Act(FLSA) regulations
are not eligible for overtime compensation. The Director of Human Resources is responsible
for determining the exempt or non-exempt status of positions in accordance with FLSA.
603.03 General.When the city's operating requirements or other needs cannot be met during regular
working hours, non-exempt employees may be required to work overtime, at the request of
their supervisor.When possible,advance notification of mandatory overtime assignments will
be provided. Refusal or other failure to work mandatory overtime may result in corrective
action, up to and including termination of employment. Overtime work is otherwise subject
to the same attendance policies as straight time work.
603.04 Work Assignments. Overtime assignments will be distributed as equitably as practical to all
non-exempt employees qualified to perform the required work.
603.05 Rate of Pay. Overtime shall be paid to non-exempt employees at one and one-half(1%2)times
the regular rate of pay in accordance with FLSA and as described below. Overtime eligibility
is determined based on the applicable work period established for each employee group in
accordance with Policy 602—Work Week and Pay Periods.
603.05.01 Civilian Employees.Overtime shall be paid for hours worked in excess of forty(40)
hours in a work week.
603.05.02 Sworn Police Personnel. Overtime shall be paid to sworn police personnel for
hours worked in excess of eighty(80) hours during a 14-day work period.
603.05.03 Sworn Fire Shift Personnel. Overtime shall be paid to sworn fire shift personnel
for hours worked in excess of ninety-one(91) hours during a twelve(12)day work
period, consistent with the provisions of Section 207(k) of the Fair Labor
Standards Act.
603.05.04 Sworn Fire Non-Shift Personnel. Overtime shall be paid for hours worked in
excess of forty(40) hours in a work week.
603.05.05 Hours worked are defined as those hours actually worked on behalf of the
employer plus holiday pay. Vacation leave, sick leave, compensatory time and
other paid time off are not considered as hours worked for the purposes of
calculating overtime.
Policy No. 603: Overtime and Compensatory Time Page 1
CITY OF RESOLUTION NO. 26-012: EXHIBIT A
SOUTHLAKE
603.06 Unauthorized Overtime. All non-exempt employees shall receive their supervisor's prior
authorization before performing any overtime work. This means employees may not begin
work prior to their scheduled workday,and may not continue working beyond the end of their
scheduled workday, without prior authorization from the appropriate supervisor. Similarly,
employees may not work through their lunch break without prior authorization from the
appropriate supervisor. In addition, employees may not conduct work via electronic devices
when not on duty, such as checking their work email without prior approval. Non-exempt
employees who work overtime without receiving proper authorization shall receive
compensation for all hours worked, but may be subject to corrective action, up to and
including termination of employment. Employees must accurately report all hours worked,
regardless of whether the overtime was authorized.
603.07 Compensatory Time Off in Lieu of Overtime. Non-exempt employees may accrue
compensatory time in lieu of being paid overtime compensation. Compensatory time is
accrued at the rate of one and one-half (1Yz) hours of compensatory time for each hour of
overtime worked, consistent with the Fair Labor Standards Act.
603.07.01 Compensatory Accrual Limit. Employees may accrue a maximum of sixty (60)
hours of compensatory time off. Any additional overtime worked shall be
compensated in wages.
603.07.02 Use of Accrued Compensatory Time. Use of compensatory time off is subject to
approval of the employee's supervisor. An employee who requests use of such
time shall be permitted to use the time off within a reasonable period after
making the request, if it does not unduly disrupt the work of the department.The
city may, at any time, elect to pay a non-exempt employee for any or all of the
employee's accrued compensatory time. The city may also require employees to
take time off in order to reduce their accrued compensatory time. Otherwise,
compensatory time off may be used the same as leave time.
603.07.03 Payment of Accrued Compensatory Time. Accrued compensatory time that has
not been used shall be paid to employees upon termination of employment or
upon transfer to an exempt position.
603.08 Approval and Effective Date. This policy was approved by City Council on April 7, 2026 by
Resolution No. 26-012, and is effective June 20, 2026. It supersedes all previous overtime and
compensatory time policies.
Policy No. 603: Overtime and Compensatory Time Page 2
CITY OF
SOUTHLAKE -- DRAFT I REDLINED --
603—OVERTIME AND COMPENSATORY TIME
603.01 Policy.Overtime compensation shall be paid to all non-exempt employees in accordance with
federal and state wage and hour requirements. Exempt employees shall not be paid overtime
compensation.
603.02 Eligibility. All non-exempt employees are eligible for overtime compensation. Employees in
positions that are designated as exempt under the Fair Labor Standards Act(FLSA) regulations
are not eligible for overtime compensation. The Director of Human Resources is responsible
for determining the exempt or non-exempt status of positions in accordance with FLSA.
603.03 General.When the city's operating requirements or other needs cannot be met during regular
working hours, non-exempt employees may be required to work overtime, at the request of
their supervisor.When possible,advance notification of mandatory overtime assignments will
be provided. Refusal or other failure to work mandatory overtime may result in corrective
action, up to and including termination of employment. Overtime work is otherwise subject
to the same attendance policies as straight time work.
603.04 Work Assignments. Overtime assignments will be distributed as equitably as practical to all
non-exempt employees qualified to perform the required work.
603.05 Rate of Pay. Overtime shall be paid to non-exempt employees at one and one-half(1%)times
the regular rate of pay in accordance with FLSA and as described below. Overtime eligibility
is determined based on the applicable work period established for each employee group in
accordance with Policy 602—Work Week and Pay Periods.
603.05.01 Civilian Employees.Overtime shall be paid for hours worked in excess of forty(40)
hours in a work week.
603.05.02 Sworn Police Personnel. Overtime shall be paid to sworn police personnel for
hours worked in excess of eighty (80) hours during a 14 day work period.
603.05.03 Sworn Fire Shift Personnel. Overtime shall be paid to sworn fire shift personnel
for hours worked in excess of ninety-one(91) hours during a twelve(12)day work
period, consistent with the provisions of Sectdion 207(k) of the Fair Labor
Standards Act.ef A-.np h,in dre d f, urt en (11 n) hours during a 1 C_day work period
603.05.04 Sworn Fire Non-Shift Personnel. Over-time shall be paid for hours worked in
excess of forty (40) hours in a work week.
603.05.05 Hours worked is-are defined as those hours actually worked on behalf of the
employer plus holiday pay. Vacation leave, sick leave, compensatory time and
other paid time off is-are not considered as hours worked for the purposes of
calculating overtime.
Policy No. 603: Overtime and Compensatory Time Page 1
CITY OF
SOUTHLAKE -- DRAFT I REDLINED --
603.06 Unauthorized Overtime. All non-exempt employees shall receive their supervisor's prior
authorization before performing any overtime work. This means employees may not begin
work prior to their scheduled work day, and may not continue working beyond the end of
their scheduled workday, without prior authorization from the appropriate supervisor.
Similarly, employees may not work through their lunch break without prior authorization
from the appropriate supervisor. In addition, employees may not conduct work via electronic
devices when not on duty, such as checking their work email without prior approval. Non-
exempt employees who work overtime without receiving proper authorization shall receive
compensation for all hours worked, but may be subject to corrective action, up to and
including termination of employment. Employees must accurately report all hours worked
regardless of whether the overtime was authorized.
603.07 Compensatory Time Off in Lieu of Overtime. Non-exempt employees may accrue
compensatory time in lieu of being paid overtime compensation. Compensatory time is
accrued at the rate of one and one-half (1%) hours of compensatory time for each hour of
overtime worked, consistent with the Fair Labor Standards Act.
603.07.01 Compensatory Accrual Limit. Employees may accrue a maximum of sixty J601
hours of compensatory time off. ^In„ e;e_=Any additional overtime worked shall
be compensated in wages.
603.07.02 Use of Accrued Compensatory Time. Use of compensatory time off is subject to
approval of the employee's supervisor. An employee who requests use of such
time shall be permitted to use the time off within a reasonable period after
making the request, if it does not unduly disrupt the work of the department.The
city may, at any time, elect to pay a non-exempt employee for any or all of the
employee's accrued compensatory time. The city may also require employees to
take time off in order to reduce their accrued compensatory time. Otherwise,
compensatory time off may be used the same as leave time.
603.07.03 Payment of Accrued Compensatory Time. Accrued compensatory time that has
not been used shall be paid to employees upon termination of employment or
upon transfer to an exempt position.GGn+ enr, ,..,+,.V h„+ . ,+ ,
an exempt elassified pesitffie-n-.
603.08 Approval and Effective Date. This policy was approved by City Council on December 3 2019
April 7, 2026 by Resolution No. 26-01219 042, and is effective June 20, 2026 januaFy 1, 202-0
It supersedes all previous overtime and compensatory time policies.
Policy No. 603: Overtime and Compensatory Time Page 2