1. (a) The salary budget category may include employees only, and not independent contractors. "Employee" is defined as a person under the direction and supervision of the entity, who is on the payroll of the entity and for whom the entity is required to pay applicable income withholding taxes; or a person who will be on the entity's payroll and for whom the entity will pay applicable income withholding taxes once the grant is awarded.
2. (b) Salaries for grant-funded positions must be reasonable and comply with the entity's salary classification schedule. If an entity does not have a classification schedule, the entity must maintain documentation supporting that the salary is commensurate with that paid in the geographic area for positions with similar duties and qualifications. In any event, the OAG will determine whether or not a salary is reasonable and may limit the OAG-funded portion of any salary.
3. (c) The OAG may set minimum restrictions on the percentage of salary that may be funded by the OAG.
4. (d) An entity may not use grant funds to pay overtime.

Source Note:The provisions of this §60.201 adopted to be effective July 15, 2003, 28 TexReg 5523.