Transcript Fair Labor Standards Act (FLSA) Presented by: April Underwood, Compensation Consultant Scott Shimoda, Compensation Consultant.

Fair Labor Standards Act (FLSA)
Presented by:
April Underwood, Compensation Consultant
Scott Shimoda, Compensation Consultant
2013
Fair Labor Standards Act (FLSA)
 Overview of federal law
 Exemptions
 Requirements for Non-exempt
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Recordkeeping
Compensable Time
Overtime
Multiple Jobs @ IU
Meal & Rest Periods
Travel
Training, Volunteers and Internships
Fair Labor Standards Act (FLSA)
Legal Compliance
INTRODUCTION
Fair Labor Standards Act (FLSA)
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UHRS
University Compensation Services
FLSA impacts IU policies & employees
FLSA & supervisors
Past FLSA violations at IU
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Willful violations
May 2000
Back wages
Future violations
Fair Labor Standards Act (FLSA)
Legal Compliance
OVERVIEW OF FEDERAL LAW
& EXEMPTIONS
Fair Labor Standards Act (1938)
Enacted to protect workers
 Establishes minimum wage
- $7.25 on July 24, 2009
 Overtime pay
 Record keeping
 Required Posters
 Child labor requirements
Fair Labor Standards Act (FLSA)
U.S. Department of Labor (DOL), Wage & Hour Office
 Administers act and investigates complaints
• Burden of proof is on employer
 www.dol.gov – regulations, file complaints, etc.
FLSA Exemption Tests
(from minimum wage and overtime)
 Salary Requirements
 Duties Tests
 Both salary and duties test must be satisfied to
classify positions as Exempt (PAE)
 Primary Duty
Exempt vs. Non-exempt Positions
Exempt Positions
• Salary based
compensation
• Does not track hours
worked
• Does not earn overtime
• Limitations on deductions
from daily/weekly pay
Non-exempt Positions
• Hourly based
compensation
• Must track all hours
worked
• Eligible for overtime
Fair Labor Standards Act (FLSA)
Legal Compliance
REQUIREMENTS FOR
NON-EXEMPT
Non-exempt IU Employees
 Professional Staff - PAO
• Primary duties do not satisfy FLSA duties test
 Professional Staff – PAU
• FLSA salary requirement not met
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Support and Clerical Staff
Service Staff
General Supervisors - GS
Hourly & Student Hourly Employees
Recordkeeping Responsibilities
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Non-exempt Employees
• Complete timesheets daily/weekly
• Record hours worked, compensatory time & time-off
 Managers
• Approve overtime in advance
• Verify hours worked and time-off
• Approve timesheet bi-weekly
 Department
• Retain records
What is Compensable Time?
 Start & End of Principal Activity each
day
 Suffer or Permit to Work
 Time spent preparing and finishing
up
 Waiting time
Overtime Pay
 Paid overtime for hours worked over
40 in the work week.
• Employees may be subject to disciplinary action if
supervisor does not approve overtime work in
advance
 Calculating Overtime
Compensatory Time
 Definition of Comp time
 Supervisor must communicate to employee
how overtime will be compensated
 Maximum Accumulation per IU policy
Employees with Multiple Jobs
 IU is one employer
 Paid for all hours
 Overtime pay for total hours
worked over 40
 Valid Multiple Job
Combination Chart
Meal and Rest Periods
 Meal periods
 Rest periods
 IU Policy
Travel Time
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Home to Work
(Normal Commute)
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One Day Assignment
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Overnight Travel
Training, Volunteer & Unpaid Internships
 Training Time
 Volunteer Time
 Unpaid Internships
Fair Labor Standards Act (FLSA)
Legal Compliance
EXAMPLES
Fair Labor Standards Act (FLSA)
Legal Compliance
CONCLUSION/QUESTIONS