Transcript Slide 1

Overtime &
Fair Labor Standards Act
Revised
December 2, 2009
Purpose of FLSA
• Establishes minimum wage and overtime standards
• Distinguishes between covered (non-exempt) and
excluded (exempt) employees
• Establishes overtime threshold (40 hr.)
• Specifies record-keeping requirements
3
Types of FLSA Exemption Status
• Exempt – not covered by FLSA (overtime pay not
required)
• Non-Exempt – covered under FLSA for time-andone-half overtime pay
5
Exempt Positions under FLSA
• Job Basis test: Must meet Executive, Administrative,
Professional, or Computer Professional test for
exemption.
– Applies to each position individually based on duties and
responsibilities - not to a class, Role, working title, or
category of position.
• Salary Basis test: Salary more than $455 per week,
regardless of whether part-time or full-time – does not
apply to teachers, employees practicing law or
medicine, and outside sales employees.
6
How do you know FLSA status of classified
positions?
• EClass designates FLSA status.
• HR Generalist (HRG) notifies department Personnel
Administrator (PA).
• PA can access FLSA status:
– EClass in PEAEMPL or NBAJOBS in Banner
– In NBAPOSN:
• a checkmark beside “Exempt Indicator” = exempt FLSA
status;
• no checkmark = non-exempt status.
• Employees should see their supervisor or PA.
7
Classified (C1, C2, C3, C4, C5, C6, and LE)
• Exempt (C2, C4, C6, some LE)
– In pay bands 4 and above, if job duties and salary basis
exemption tests are met.
– FLSA exemption status determined by HRG.
• Non-Exempt (C1, C3, C5, some LE)
– All in pay bands 3 and below.
– In pay bands 4 and above, if job duties and salary basis
exemption tests are not met.
– FLSA exemption status determined by HRG.
8
Faculty (F1 – F6, A1 – A6, P1 – P6, M1 – M6, and O1 – O6)
• All faculty positions must be Exempt.
• FLSA exemption status determined by Provost or VPHS
offices.
• F1 – F6 and M1 – M6: Always exempt if teaching or
practicing medicine; otherwise, job duties and salary
basis exemption tests must be met.
• A1 – A6, P1 – P6 , and O1 – O6: Job duties and salary
basis exemption tests must be met.
• If job duties or salary basis exemption tests are not met,
these positions cannot be faculty.
9
Adjunct Faculty (AJ)
• All adjunct faculty positions must be Exempt.
• If primary job is non-exempt, overload job cannot be
adjunct - must be treated as hourly. Contact your HRG
for more information.
10
Adjunct Faculty (AJ) Who Teach
AJ001 Adj Fac Credit Instructor, Pos #J00001
AJ003 Continuing Education Instructor, Pos #J00003
AJ004 Adj Faculty-Summer Only, Pos #J00004
AJ005 Elderhostel Adjunct Instructor, Pos #J00005
AJ006 Adj Fac Non-Credit Instructor, Pos #J00006
• FLSA exemption status determined by Provost or VPHS
offices.
• Under FLSA, teaching as primary duty is always
considered exempt.
11
Adjunct Faculty (AJ) Who Don’t Teach
AJ002 Adjunct Faculty Non-Teaching, Pos #J00002
• FLSA exemption status determined by Provost or VPHS
offices.
• Both job duties and salary basis exemption tests must be
met.
• Must make at least $455 per week, unless teaching,
practicing law or medicine, or outside sales.
• If job duties or salary basis exemption tests are not met,
these positions cannot be adjunct faculty. Contact your
HRG for more information.
12
Graduate Assistants (GA and G9) & Post-Doctoral
Scholars (PD)
• Graduate Assistants and Post-Doctoral Scholars are
considered Exempt under FLSA.
13
Hourly (H1), Student Workers (SW), Work-Study (WS)
• All hourly employees (except teachers or those practicing
medicine) are considered Non-Exempt under FLSA.
14
Exempt Employees
• Paid for job, not hours worked.
• No overtime payments required.
• In extremely rare situations, may provide:
– Compensatory time or straight-time pay for hours worked
>40 hours in a workweek.
– Should be for short duration of time under special
circumstances (vacancy, special project, etc.).
15
Non-Exempt Employees – Overtime Compensation
• Must receive 1 1/2 times regular rate for all hours worked
in excess of 40 in a workweek or overtime leave.
– Time-and-One-Half Overtime
– Overtime Leave
• If leave was taken during week, non-exempt employee
receives regular rate (straight time, 1 hour = 1 hour’s
pay) for hours worked in excess of scheduled hours up
to 40 during a workweek.
– Straight Time Overtime
16
Non-Exempt Critical Term: “Hours Worked”
• Principal job activity
• “Suffer” or permit to work
• Rest periods less than 20 minutes in duration (except
lunch)
17
Non-Exempt Critical Term: “Workweek”
• Workweek begins at 12:01 a.m. on Sunday and ends
at 12:00 a.m. (midnight) on Saturday
• 168 consecutive hours during a 7-day period
18
Non-Exempt Critical Term: “Regular Rate”
• Includes all forms of remuneration (e.g., shift differential,
on-call pay, lump-sum payments, second job salary)
• Converted to HOURLY rate
• Particular to each workweek
19
Non-Exempt Compensable Time Examples
• Perform principal duties
• Perform principal duties or closely-related duties
outside of work hours
• Travel time between job sites
• Employer-required training
• Breaks (<20 minutes)
• Pre- and postliminary activities (checking job locations,
fueling cars, picking up mail at P.O., putting away tools
at end of day)
20
Non-Exempt Compensable Time Examples
• Preparatory work related to principal duties
• “Waiting” or “standing by” for work
• “Unauthorized” work performed (with or without
supervisor’s knowledge)
• Arrives early to work and begins working
• Meal time - if employee is not “free” from work duties
21
Non-Exempt Compensable Time Examples –
Unauthorized Work
• Work not requested but “suffered or permitted” is counted
as time worked
• Standard is whether employer knows or has reason to
believe the work is being performed
22
Overload Jobs
PRIMARY
JOB
EXEMPT
OVERLOAD
JOB
EXEMPT
OVERTIME
PAYMENT?
NO
EXEMPT
NON-EXEMPT
NO
NON-EXEMPT
EXEMPT
YES
NON-EXEMPT
NON-EXEMPT
YES
If primary job is part time, department must consult with HRG.
23
FLSA Violations
• U.S. Department of Labor (DOL) enforces FLSA
• Burden of proof is on employer
• If violation found to be willful, employee can sue employer
for recovery of back wages and liquidated damages for up
to 3 years
• Employer cannot retaliate against employee for “whistle
blowing”
24
Potential DOL Penalties
•
•
•
•
•
•
Unpaid wages (2 - 3 years of back wages)
Fines ($10,000)
Imprisonment (6 months)
Liquidated damages (2x)
Attorney fees and costs
Individual liability
25
Banner Overtime Authorizations
FLSA STATUS
NON-EXEMPT
FLSA STATUS
EXEMPT
OT2 Overtime Classified @ 1.5
OT1 Additional Paid Time @ 1.0
Exception
OT1 Additional Paid Time @ 1.0
OT2 Additional Paid Time @ 1.5
26
For more information…
• Contact your HR Generalist
• Review “Overtime Guidelines” and related links on the
VCU HR Compensation Management webpage at
www.hr.vcu.edu/policies/FLSA%20handout.pdf
• See “VCU Banner Leave Reporting and Timekeeping
Manual” at
www.hr.vcu.edu/forms/Banner_Leave_Reporting&Time
keeping_Manual.pdf
27