Transcript Mealtime Recording

FastFacts
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Various
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Today’s Topic
• We’ll be taking a look at…
Fair Labor Standards Act
(FLSA)
Wage and Hour
Today’s Presenters

Sharon Kemp
Director of Compensation

Peter Tollini
Director HR Consulting & Labor Relations
Session Segments
• Presentation
– Pete and Sharon will discuss the Fair Labor Standards Act as it
relates to wages and hours.
– During their presentation, your phone will be muted.
• Q&A
– After the presentation, we’ll hold a Q&A session.
– We’ll open up the phone lines, and you’ll be able to ask
questions.
– Pete and Sharon will answer as many of your questions as time
allows. Laurice Royal and Nakita Green, JHHS Legal, will also be
available to answer questions.
Contact Us
• If you would like to submit a question during the presentation or if
you’re having technical difficulties, you can email us at:
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Survey
• Survey
– At the end of this FastFacts session, we’ll ask you to
complete a short survey.
– Your honest comments will help us to enhance and
improve future FastFacts sessions.
Fair Labor Standards Act – FLSA
Wage and Hour
Fast Fact Session
Presented by: Human Resources and Legal
May 2010
7
Major Provisions
• Coverage
• Minimum Wage
• Overtime Pay
• Youth Employment
• Volunteers
• Interns
• Recordkeeping
8
Minimum Wage: Basics
• Covered, non-exempt employees
must be paid not less than the
federal minimum wage for all
hours worked
• The minimum wage is $7.25 per
hour effective July 24, 2009
9
Compensation Included
• Wages (hourly rate)
• Non-discretionary bonuses
• Shift Differentials
(evenings/nights/weekends)
• On-call rate
• Callback hours worked
10
Deductions
Deductions from pay are illegal if:
– Deduction is for an item considered primarily for the
benefit or convenience of the employer; and
– The deduction reduces employee’s earnings below
required minimum wage
Examples of illegal deductions
• Tools used for work
• Damages to employer’s property
• Cash register shortages
11
Hours Worked
• Suffered or Permitted
• Pre-shift/Post Shift Activities
• Waiting Time
• On-Call Time
• Meal and Rest Periods
• Training Time
• Travel Time
• Sleep Time
12
Suffered or Permitted
Work not requested but
suffered or permitted is
work time
13
Pre-Shift/Post-Shift Activities
• If the employer knows or has reason to
believe that the work is being performed, the
employer must count the time as hours
worked.
• For example, if the employer does not stop
an employee from working before or after the
shift, the employee must be paid for that
time.
14
Waiting Time
Counted as hours worked when:
• Employee is unable to use the time effectively
for his or her own purposes; and
• Time is controlled by the employer
Not counted as hours worked when:
• Employee is completely relieved from duty;
and
• Time is long enough to enable the employee to
use it effectively for his or her own purposes
15
On-Call Time
On-call time is hours worked when
• Employee has to stay on the employer’s
premises
• Employee has to stay so close to the
employer’s premises that the employee cannot
use that time effectively for his or her own
purposes
On-call time is not hours worked when
• Employee is required to carry a pager
• Employee is required to leave word at home or
with the employer where he or she can be
16
reached
Meal and Rest Periods
• Meal periods are not hours worked
when the employee is relieved of
duties for the purpose of eating a
meal
• Rest periods of short duration
(normally 5 to 20 minutes) are
counted as hours worked and must
be paid
17
Training Time
Time employees spend in meetings,
lectures, or training is considered hours
worked and must be paid, unless:
• Attendance is outside regular working
hours, and
• Attendance is voluntary, and
• The course, lecture, or meeting is not
job related, and
• The employee does not perform any
productive work during attendance.
18
Travel Time
• Ordinary home to work travel is not work
time
• Travel between job sites during the
normal work day is work time
• Special rules apply to travel away from
the employee’s home community
19
Sleep Time
Less than 24 hour duty
• Employee who is on duty for less
than 24 hours is considered to be
working even if allowed to sleep or
engage in other personal pursuits
Duty of 24 hours or more
• Employers can exclude bona fide
sleep and meal periods
20
Overtime Pay
Covered, non-exempt
employees must receive
one and one-half times the
regular rate of pay for all
hours worked over forty in
a workweek
21
Workweek
• Compliance is determined by workweek,
and each workweek stands by itself
• Workweek is 7 consecutive 24 hour
periods (168 hours)
• JHHSC/JHH's workweek begins at 7:00
a.m. each Sunday
22
Regular Rate

Is determined by dividing total
earnings in the workweek by the
total number of hours worked in
the workweek

May not be less than the
applicable minimum wage
23
Regular Rate Exclusions
• Sums paid as gifts
• Payments for time not worked
• Reimbursement for expenses
• Discretionary bonuses
• Retirement and insurance plans
• Overtime premium payments
24
Regular Rate (RR)
Step 1: Total Straight Time Earnings (Minus
Statutory Exclusions) Divided By
Total Hours Worked = Regular Rate
Step 2:
Regular Rate x .5 = Half Time
Premium
Step 3:
Half Time Premium x Overtime Hours
= Total Overtime Premium Due
25
Example: Hourly Rate + On-call Pay
Total Hours = 48
Hourly Rate = $14.50
On-call 16 hours at $4.35/hour = $69.60
48 hours x $14.50=
On-call
+
$765.60 / 48 hrs
$15. 95 x .5
$7.98 x 8 hrs
=
=
=
$696.00
69.60
$765.60
$15.95 (Regular Rate)
$7.98
$63.84 (Overtime Due)
26
Example: Different Hourly Rates
Janitor Rate
Cook Rate
21 hours x
26 hours x
$11.25
$14.50
$11.25
$14.50
$613.25 / 47 hours
$13.05 x 0.5
$6.53 x 7 hours
Janitor Hours
Cook Hours
21
26
= $236.25
= $377.00
$613.25
=
=
=
$13.05 (Regular Rate)
$6.53
$45.71 (Overtime Due)
27
Bona Fide Deductions
A deduction may be made if:

It is made for particular items under a prior
agreement, and

The purpose is not to evade statutory overtime
requirements or other laws, and

It is limited to the amount above the highest
applicable minimum wage for the first 40 hours
28
Deductions From Exempt
Employees
• An employer may not dock an exempt
employee’s pay.
• In addition, if an exempt employee is ready,
willing and able to work, deductions may not
be made for time when work is not available.
29
Permissible Deductions from
Exempt Employees
Seven exceptions from the “no pay-docking” rule
1. Absence from work for one or more full days for
personal reasons, other than sickness or disability
2. Absence from work for one or more full days due to
sickness or disability if deductions made under a
bona fide plan, policy, or practice of providing wage
replacement benefits for these types of absences
3. To offset any amounts received as payment for jury
fees, witness fees, or military pay
30
Permissible Deductions from
Exempt Employees (cont.)
4. Penalties imposed in good faith for violating
safety rules of “major significance”
5. Unpaid disciplinary suspension of one or more
full days imposed in good faith for violations of
written workplace conduct rules
6. Proportionate part of an employee’s full salary
may be paid for time actually worked in the first
and last weeks of employment
7. Unpaid leave taken pursuant to the Family and
Medical Leave Act
31
Safe Harbor
• The exemption will not be lost if the employer:
• Has a clearly communicated policy prohibiting
improper deductions and including a complaint
mechanism
• Reimburses employees for any improper
deductions; and
• Makes a good faith commitment to comply in the
future
• Unless the employer willfully violates the policy
by continuing to make improper deductions
after receiving employee complaints
32
Youth Employment
Federal youth
employment rules set
both hours and
occupational standards
for youth
33
Youth Employment
16
Sixteen- and 17-year-olds may be employed for
unlimited hours in any occupation other than those
declared hazardous by the Secretary of Labor
14
Fourteen-and 15-year-olds may be employed
outside school hours in a variety of nonmanufacturing and non-hazardous jobs for limited
periods of time and under specified conditions
Under 14
Children under 14 years of age may not be
employed in non-agricultural occupations covered
by the FLSA
34
Student Interns-Trainees
If all of the following criteria apply, Interns or
Trainees are not employees within the meaning
of the FLSA if:
• Training is similar to that given vocational school;
• Training benefits Interns/Trainees;
• Interns/Trainees do not displace regular employees,
and work under close supervision;
• Employer receives no immediate advantage
• Interns/Trainees are not entitled to a job
• The parties understand that the Interns/Trainees are
not entitled to wages
35
Volunteers
An individual will be considered a volunteer
under the FLSA if the individual:
1) performs hours of service for civic, charitable,
or humanitarian reasons, without
compensation
2) offers services freely and without pressure or
coercion; and,
3) is not otherwise employed by the same
organization to perform the same type of
services.
36
Recordkeeping
• An accurate record of the hours worked
each day and total hours worked each
week is critical to avoiding compliance
problems
• The FLSA requires that all employers
subject to any provision of the Act
make, keep, and preserve certain
records
37
Recordkeeping
• Every covered employer must keep
certain records for each non-exempt
worker
• Records need not be kept in any
particular form
• Time clocks are not required
38
FLSA Violations
• U.S. Department of Labor (DOL)
enforces FLSA
• Burden of proof is on employer
• If a violation is found to be willful,
employees can sue for recovery of back
wages and liquidated damages for up to
3 years
• Employer cannot retaliate against
employee for “whistle blowing”
39
Resources
• HR Policies especially HR 701 Hours Worked by Nonexempt
Employees; HR 300 Compensation; HR 601 Attendance
Management; HR 326 Paid Time Off; HR327 Holidays
• Office of Compensation
• HR Consulting and Labor Relations
• KRONOS Resources
• Nightingale Resources
40
Q&A
• We’re going to open the phone lines now!
• There will be a slight pause, and then a recorded voice will provide
instructions on how to ask questions over this conference call line.
• We’ll be answering questions in the order that we receive them.
• We’ll also be answering the questions that were emailed to us
during the presentation.
• If there’s a question that we can’t answer, we’ll do some research
after this session, and then email the answer to all participants.
Thank You!
• Thank you for participating!
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cover in future FastFacts sessions?
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