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26-012 Resolution 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. ASSED AND APPROVED THIS THE DAY OF t , 2026. V� vu"�� Shawn McCaskill, Mayor ATTEST: T H L.A S7L f: -U - Amy di Sec(qtalry. /filllll 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%)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 r . 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 (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 (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