1. What is UTHealth Houston’s (“UTHealth Houston” or “University”) general rule related to out-of-state employment?
The expectation is that all UTHealth Houston employees should reside and work in the State of Texas. The applicable policy, HOOP 230, Out-of-State Work, provides that this restriction does not apply to occasional remote work done while an employee is out of state for a brief period (generally less than one month per year) or while an employee is out of state on official assignment.
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2. Is there a departmental cost associated with the request for an exception?
Yes, there is a $10,000.00 fee per employee, per year that will be charged to the department if the request is approved.
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3. Can I just convert the employee to an independent contractor to avoid this process entirely?
No. If you wish to allow an employee to work out of state, you must comply with this policy. Please note that any attempts to convert an employee to a contractor status in violation of this policy will be promptly rejected and subject to appropriate consequences. HOOP 230 requires that the designated procedures be followed to ensure compliance and maintain a fair and transparent working environment.
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4. What are the risks with an employee working outside the State of Texas?
Permitting an employee to work outside of Texas may subject both the employee and the University to the tax, employment and other laws of another jurisdiction, resulting in additional risk and administrative burden.
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5. Who is eligible to request to work remotely out-of-state?
Only those exempt personnel who meet the exception criteria as defined below are eligible to work remotely out of state.
The Exception Criteria are:
a. when the position is deemed mission critical and hard to fill; or
b. when the University seeks to retain or hire an individual who is widely renowned in their field, has expertise in a highly specialized field, or has other unique or notable accomplishments.
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6. Who is not eligible to work remotely out-of-state?
Employees/Candidates who are classified as Fair Labor Standards Act (FLSA) non-exempt cannot be granted an exception, and as such are not permitted to work remotely out-of-state.
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The following signatures are required on the form:
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The Out-of-State Employment Exception Form must be approved and signed by the Department representative and Dean or administrative equivalent or designee for the school or unit.
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For faculty, academic A&P and general A&P positions, the Out-of-State Employment Exception Form must be submitted to the Senior Vice President for Academic and Faculty Affairs or designee for final approval.
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For management A&P and classified positions, the Out-of-State Employment Exception Form must be submitted to the Vice President & Chief Human Resources Officer or designee for final approval.
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The Out-of-State Review Committee also reviews the requests and it consists of representatives from the offices of Human Resources, Legal, Payroll, Benefits, Compliance and International Affairs. The role of this Committee is to provide response for final decision to the Senior Vice President for Academic and Faculty Affairs and Vice President & Chief Human Resources Officer, respectively.
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9. The department would like to hire an applicant who currently lives out of state who plans to relocate to Texas in the next six months. What steps should the department take before they hire this potential applicant?
The supervisor must review the request and determine if it appears likely to meet the Exception Criteria (see Question 5, above). Next, the candidate’s supervisor must submit an Out-of-State Employment Exception Form to the Senior Vice President for Academic and Faculty Affairs or Vice President & Chief Human Resources Officer, respectively, as described in HOOP 230. The supervisor must also initiate the process at least 60 days prior to the proposed start date to allow sufficient time for review, with no guarantee of approval of the request.
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10. What are the responsibilities of employees who are granted an exception to work outside of Texas?
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Employees must know the tax consequences of any work performed outside of Texas and comply with any applicable laws of the jurisdiction in which they work.
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Except where otherwise required by law, employees who work out-of-state are not eligible for travel reimbursement to/from their respective University campus location. Such employees must pay transportation and lodging expenses incurred to attend mandatory in-person meetings or training sessions at the Houston campus or regional campuses.
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If an employee has decided to relocate from one out-of-state location to another out-of-state location in a different state, the employee must receive approval in advance using the process outlined in HOOP 230. The employee may not work in the new location until approval is received, with no guarantee of approval of the request. Failure to do so may result in disciplinary action, up to and including termination.
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Employees must also notify their supervisor if they move back to Texas from an out-of-state location.
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11. The department reviewed HOOP 228, Remote Work with the employee. Is Remote Work similar to HOOP 230, Out-of-State Work?
No. HOOP 228 provides the requirements for UTHealth Houston employees who are permitted to work remotely in any location. On the other hand, HOOP 230 outlines the out of state work requirements for UTHealth employees. Employees who are granted an exception to work outside of Texas also must comply with HOOP 228.
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12. The Out-of-State Employment Exception Form has limited space on the PDF document. Would I be able to request a Word document version?
If additional space is needed, you may use a separate sheet of paper. Please note "See Attachment" in each section that you need additional space and note on the separate paper which section the additional information is for.
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13. What happens if the department has an international employee on a H1-B, TN, E-3, or O-1 status who moves out of state?
The supervisor/hiring authority and employee/applicant must contact the Office of International Affairs (OIA) in advance to obtain guidance regarding whether an out-of-state work location is permitted by U. S. immigration regulation. You may contact OIA at 713-500-3176 or email utoiahouston@uth.tmc.edu
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14. An employee was previously approved to work out-of-state as required by HOOP 230 and will now be relocating to a different state outside of Texas. What step should be taken to make this change?
The supervisor must complete and submit a new Out-of-State Employment Exception form for the new proposed work location at least 60 days before the official change or move date. The form must be reviewed by the appropriate parties as referenced in HOOP 230. Approval of the request is not guaranteed, as each state has different laws.
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15. How much time is needed for HR and Payroll to set up a new hire who resides outside the State of Texas on the University systems (i.e., PeopleSoft, etc.)?
The timing of hire should be considered when hiring an employee who resides outside of Texas. The supervisor must complete and submit the Out-of-State Employment Exception Form at least 60 days of the proposed hire date to allow time to set up employee’s outside state on University systems.
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16. One of our Faculty is planning to move to a different state and wants to provide telemedicine services remotely as an UTHealth Houston employee. Would the Faculty be able relocate and provide telemedicine services remotely?
It is unlikely. Since the employee will be moving to a new state, the employee’s supervisor must submit an Out-of-State Employment Exception Form for review and approval by the appropriate parties as described in HOOP 230. Regarding telemedicine services, please contact the Office of Legal Affairs for guidance, as the telemedicine requirements are complicated and are based on where the physician is located and where the patient is located at the time of each visit.
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17. Can a supervisor suspend or terminate an out-of-state work permission?
Yes. A supervisor may suspend or terminate an out-of-state work permission at any time if any conditions of employment change for an employee for whom an exception has been granted. Any changes must be immediately reported to Human Resources. Examples of a change in condition of employment include a change in FTE, a change in position title, change in address, change in job performance, etc.
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18. If an exception request is approved, the employee’s home Department (primary department responsible for the employee’s employment) must pay the additional cost associated with the exception in the form of an administrative fee. What is the amount of the administrative fee?
The University has determined that the annual administrative fee associated with the University’s additional obligations for an employee to reside and work out of state is $10,000 per employee. This fee will cover the administrative burden that University may incur to set up employees on the appropriate systems and ensure compliance with tax, employment and other laws of another jurisdiction.
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19. Is there an appeal process if an employee’s exception request is denied?
No, there is not an appeal process for these requests. The department and/or supervisor may consider other options to hire the employee through a University approved contract agency. The department may elect to terminate an existing employee or not to hire an applicant if the request is denied.
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20. Can we use our family member’s address?
No, for payroll purposes you should only report the address where you currently live, and if it is outside of the State of Texas, then you should follow the process identified in HOOP 230.
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21. How long may an employee be allowed to report an institutional address as their home address in PeopleSoft?
University employees should update their home address as soon as possible.
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22. What if an employee wishes to work remotely out of state and reside in a country other than the United States?
University Employees/Candidates who wish to live and work in a country other than the United States cannot be granted an exception, and as such are not permitted to work remotely in another country. This restriction does not apply to occasional remote work done while an employee is out of the country for a brief period (generally less than one month per year) or while an employee is out of the country on official assignment.
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Revised as of 11/16/2023.
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