| (C) For purposes of this paragraph, "state treasury" means money that may be spent only on a warrant issued or electronic funds transfer initiated by the comptroller. (11) Adjustments to payroll accumulators. A state agency that recovers an indebtedness shall adjust all relevant payroll accumulators, including agency paid taxes, employee paid taxes, and limits on benefit replacement pay and deferred compensation. The agency shall maintain sufficient records about these adjustments to prove compliance with state and federal laws and to support an audit. (12) Terminations or interagency transfers of state employees. A deduction or a reduction that started while a state employee was employed by a state agency may not continue after the employee transfers to a different state agency. The amount of overpaid compensation that remains outstanding after the transfer may not be recovered through deduction or reduction. (c) Correcting underpayments of compensation. (1) Special definitions. In this subsection: (A) "Casual or task employee" means an individual who is employed by an institution of higher education for a short period or a particular task. (B) "State agency" means a department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes the State Bar of Texas, the Board of Law Examiners, and an institution of higher education. (C) "State employee" includes a state officer, a casual or task employee, and an individual whose employment with a state agency is conditional on the individual being a student. (2) Quality control measures. Each state agency must ensure that its internal operating procedures include quality control measures that will detect any underpayment of compensation to a state employee. (3) Deadline for correcting underpayments. (A) Except as provided in subparagraph (B) or (C) of this paragraph, a state agency shall correct an underpayment of compensation for a particular pay period not later than the following pay period. (B) A state agency shall promptly process a supplemental payroll to correct an underpayment of compensation to a state employee if delaying the correction would cause employee hardship. (C) This subparagraph applies when a state agency does not detect an underpayment of compensation in time to correct it during the pay period following the pay period for which the underpayment occurred. The agency shall promptly correct the underpayment through a supplemental payroll. (4) Choosing the hourly rate for the correction. This paragraph applies only if an underpayment of compensation resulted from a state agency believing that a state employee worked fewer hours than the employee actually worked. The agency shall calculate the amount of the correction by using the hourly rate of pay that was in effect during the payroll period the hours were worked. (5) Adjustments to payroll accumulators. A state agency that corrects an underpayment of compensation shall adjust all relevant payroll accumulators, including agency paid taxes, employee paid taxes, and limits on benefit replacement pay and deferred compensation. The agency shall maintain sufficient records about these adjustments to prove compliance with state and federal laws and to support an audit. |
