Transcript The Fair Labor Standards Act (FLSA) - Pages

The Fair Labor Standards Act (FLSA)
Employment Services 303-492-6475
Training Outline
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What is FLSA?
Who does FLSA apply to?
How is overtime eligibility determined?
When can a position be exempt from
overtime?
When, where and how is overtime
calculated and paid?
What records do I need?
Who does what?
Will I remember all this?
What is FLSA?
Fair Labor Standards Act (FLSA) est.1938
governs many areas. Those areas
most important to us may be:
 Minimum wage
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Colorado: $7.28 per hour effective 1/1/09
Federal: $7.25 per hour effective 7/24/09
Exemption Criteria
 Overtime (OTM) Pay
 Record keeping requirements
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Who does FLSA apply to?
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Employment relationship between an
“employer” and an “employee”,
including:
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Classified employees
Exempt-Professional employees
Faculty and Research employees
Student employees
Temporary employees
All employees are “covered”, but
some may be exempt from OTM or
minimum wage requirements
Definitions
FLSA:
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Exempt = NOT eligible for overtime
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Not entitled to additional compensation for
hours worked over 40 in a work week
Non-Exempt = ELIGIBLE for overtime
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MUST be compensated (in salary or time off)
at the rate of time-and-a-half for all hours
worked over 40 in a work week
Colorado State Personnel System:
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Exempt = Not classified, i.e., exempt
from the state personnel system
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(exempt-professional employees)
How is overtime eligibility determined?
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Classified Staff
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Officer & Exempt Professional Staff
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Overtime status reviewed and determined by
Employment Services at time position is created
based on duties of job
Faculty
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Employment Services designates overtime
status of each position. Usually will be
documented on classification decision notice.
Typically exempt from OT
Student Employees
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Typically eligible for OT
When can a position be exempt from
overtime?
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Salary Basis
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Minimum Salary Threshold
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must be paid on a salaried basis, not
hourly (except for teachers, doctors,
lawyers, and computer professionals
currently paid at least $27.63/hr)
Currently must be paid a minimum of
$455 per week or $23,660 per year
(except for teachers, doctors, and
lawyers)
Job Duties Test
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must also be assigned job
responsibilities that fall into one of the
categories for exemption
Exemption Categories
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Executive
Administrative – regular and
academic
Professional
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Learned Professional – doctors, lawyers,
teachers
Creative Professional – artists, musicians,
creative writers
Computer Employee
Outside Salesperson
Highly Compensated
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Employee makes more than $100,000 per
year and meets other exemption criteria
Exempt Positions
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NOT eligible for OT due to salary and level
of responsibilities
May be required to complete time records
and must track use of leave
Appointing authority can schedule work
hours
Full-time public employees expected to
work minimum 40 hours a week
Administrative leave or incentive awards
may be used to compensate extraordinary
efforts but not tied to hours worked
When is overtime paid?
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Overtime is paid when more
than 40 hours are worked in a
work week
Standard CU Workweek =
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Sunday 12:01 a.m. through
Saturday midnight
How is overtime compensated?
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1 ½ times the regular rate of pay
for all hours worked over 40 in a
work week
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Paid as salary or compensatory
time off in lieu of cash if
agreement has been signed
Additional Comp Time info
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Comp Time Agreement
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Should be condition of hire in offer letter
or overtime policy
Comp time is NOT leave, but a form
of compensation
Must be scheduled as soon as
practical
Comp time balance is paid out upon
transfer or termination or when
balance exceeds 240 hours
Where is overtime paid?
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Overtime in HRMS Time Collection:
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Enter total number of hours worked in
excess of 40 hrs/wk using appropriate
earnings code:
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OTM – Overtime
SOT – Student Overtime
HRMS will calculate the 1 ½ rate
Example:
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Larry works 4 hrs overtime
PPL enters 4 hrs OTM or SOT in Time
Collection
Larry will receive 6 hrs extra pay, which is
equivalent to 4 hours at 1 ½ times his
hourly rate
Where is overtime paid?
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Comp Time:
Comp time earned and taken is
typically tracked outside of HRMS,
possibly on the employee’s work
record
 Dept work records are the official
record for comp time balances
 Comp time taken may be recorded
in HRMS:
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Use earnings code CMP
How is it calculated?
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Hours worked for purposes of
OT do not include:
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holidays, vacation, sick or admin
leave (except for essential services
positions), or comp time taken
How is it calculated?
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Work hours can not be
averaged across more than one
week. For example:
Work hours can not be averaged
at the end of the month
 Hours worked in excess of the
regular schedule in one week
cannot be used for time off in any
other week
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How is it calculated?
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Overtime is calculated on a
weekly basis
Overtime does not accrue when
an employee works beyond
his/her regular daily schedule
Overtime Examples
Week 1
Sunday
Monday
Tuesday
Wed
Thursday
Friday
8
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8
Saturday
40 hours worked. No overtime accrued for this work week.
Week 2
Sunday
Monday
Tuesday
Wed
Thursday
Friday
Saturday
8
8
8
8
8
4
44 hours worked. 4 hours at 1 ½ rate = 6 hours extra pay or comp time.
Sunday
Monday
Tuesday
Wed
Thursday
Friday
Saturday
Holiday
8
8
8
8
4
Week 3
36 hours worked. No overtime accrued for this work week
for non-essential services employees.
Essential Services and Overtime
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Essential positions support services
directly responsible for health,
safety, and welfare of patients,
residents, or students
Typically designated by Vice
Chancellor
Department should note on special
requirements page of PDQ
Per State Personnel Rules, paid
leave counts as work time when
calculating overtime for essential
employees
Can Overtime be waived? NO!
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Once overtime has been worked
(whether approved or not), it must be
compensated
Unauthorized overtime may be
cause for corrective action
Communication is key
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Departments should have procedures in
place for requesting overtime &
approval requirements
Preferred method is to use comp time in
lieu of cash
What records do I need?
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Time/work records shall be kept for
both exempt and non-exempt
employees
Both employee and supervisor must
verify and sign work records
Departments may select work
records they wish to use (see PBS
website for suggested forms)
Records should be kept for minimum
of 5 years (7 years or more for
positions funded from grants)
Who does what? HR’s Role
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Designate overtime status for
positions
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Advise departments on developing
overtime/comp time policies
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Assist with questions from
employers and employees
regarding overtime compensation
Who does what?
Department’s Responsibilities
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Know who is eligible for overtime
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Ensure employees know and understand
OT policy and expectations
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Do not allow employees to work extra
hours without appropriate compensation
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Ensure both supervisor and employee
agree and sign work record each month
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Ensure hours worked are documented
and accounted for on a work record/time
sheet
Will I ever remember all this?
Additional Resources
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Employment Services
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PBS Procedures Guide:
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https://www.cusys.edu/pbs/proceduresgui
de/
Employee Work Record forms:
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303-492-6475 (main office)
http://hr.colorado.edu/es/Pages/overtimefl
sa.aspx
http://www.cu.edu/pbs/forms/
Record Retention Checklist:
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https://www.cu.edu/pbs/payadmin/policies/
pay-records.html