Transcript FLSA Compensable Hours Worked UWSA Presentation

Compensable Hours Worked by
FLSA Nonexempt UW System
Employees
Office of Human Resources
and Workforce Diversity
TABLE OF CONTENTS
What is the FLSA?
What is changing?
Who will the change affect?
Compensatory time
What constitutes “hours worked” for nonexempt
employees?
• Summary
• Questions
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FLSA
• The Fair Labor Standards Act (FLSA) of 1938 is the US
federal wage and hour law.
• Establishes the minimum wage and overtime pay.
• Everyone is “covered” but some employees are exempt
from FLSA regulations and some are nonexempt (hourly).
• The FLSA requires that 1.5 times the regular rate of pay in
overtime or compensatory time be paid for all hours
worked over 40 in a workweek for nonexempt
employees.
WHAT IS CHANGING?
• The US Department of Labor (DOL) is increasing the
minimum salary threshold. Employees with salaries above the
threshold may be designated as exempt.
• The minimum salary threshold will be raised to the 40th
percentile of weekly earnings for full-time salaried workers in
the lowest wage Census region, which would be $913 per
week or $47,476 per year.
• The effective date is December 1, 2016.
WHO WILL THE CHANGE AFFECT?
• If an employee’s rate of pay is below the new minimum salary
level, that employee must be nonexempt unless he or she
qualifies for an exception.
• Some exempt university staff and noninstuctional academic
staff will become nonexempt because their salaries will be
below the new threshold.
• Academic staff that become nonexempt will become hourly
academic staff.
• Faculty and instructional academic staff whose primary duties
are teaching are exempt regardless of their salaries.
COMPENSATORY TIME
Under UPS Operational Policy TC 3: Compensation , nonexempt
UW System employees may receive compensatory time off, at a
rate of 1.5 hours for each overtime hour worked, instead of cash
overtime pay. If a UW System institution has agreed to allow
employees to receive comp time – and if an employee elects to
receive comp time – an employee may accumulate up to 80
hours of compensatory time. The institution will have discretion
to approve scheduled use of compensatory time.
WHAT CONSTITUTES “HOURS
WORKED” FOR NONEXEMPT
EMPLOYEES?
Compensable time under the FLSA is referred to as “hours
worked.” The amount of pay that a nonexempt employee
should receive cannot be determined without knowing the
number of hours worked.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
• Nonexempt employees must be paid at premium rate or
receive compensatory time credits at a rate of 1.5 hours per
hour worked over 40 in a workweek.
• The workweek ordinarily includes all time during which an
employee is required to be at work.
• “Hours worked” do not include hours of paid leave time.
• Compensable hours worked are the same for nonexempt
university staff and nonexempt academic staff. Nonexempt is
nonexempt.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Waiting Periods DWD 272.12 (2)(b)
Work Time. Unpredictable short periods of inactivity when the
employee is unable to use the time effectively for his or her own
purposes.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Waiting Periods DWD 272.12 (2)(b)
Nonwork Time. Periods of inactivity where the employee knows
in advance that he or she may leave the workplace or when the
length of time is long enough (at least an hour) for the employee
to use the time to his or her own purpose.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Meal Periods and Breaks DWD 272.12 (2)(c)
Work Time. Where the employee is not completely relieved of
duties or where the period is less than 30 minutes in length. If
the employee eats at his or her desk and listens for the phone it
is work time.
Breaks of 15 minutes or less are considered work time.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Meal Periods and Breaks DWD 272.12 (2)(c)
Nonwork Time. Periods of 30 minutes or more where the
employee is entirely relieved of duties for the purpose of a meal.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Preparatory and Concluding Activities DWD 272.12
(2)(e)
Nonwork Time. Changing clothes for the employee’s
convenience, putting away tools if enough time is already allowed;
waiting in line to punch in or punch out or waiting to start work
at a designated hour.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Work at Home DWD 272.12 (2)(a)
Work Time. Work at home which is permitted but not requested
by the employer
Nonwork Time. Work done at home of which the employer has
no knowledge or no means of acquiring knowledge and work
done contrary to the employer’s instructions
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Training Time DWD 272.12 (2)(f)
Work Time. Attendance at lectures, training programs and
similar activities outside of regular work hours must be counted
as work time if the employee is led to believe that attendance is
mandatory or involuntary.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Training Time DWD 272.12 (2)(f)
Nonwork Time. Attendance at lectures, training programs and
similar activities which is voluntary, outside of working hours,
and not directly related to the employee's job.
Training is considered directly related to the job if it is designed
to make the employee more effective at his/her present job.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Travel Time DWD 272.12 (2)(g)
Work Time. Travel to a meeting place or alternate work
location during the normal work day; travel site to site as part of
the employee’s normal duties; travel required to go a
considerable distance after hours to respond to an emergency;
travel to another city or location for a special or unusual oneday assignment.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Travel Time DWD 272.12 (2)(g)
Nonwork Time. Travel to and from the employee’s home to the
work site; travel required to return to the workplace after hours
to respond to an emergency.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Overnight Travel DWD 274.12 (2)(g)
Work Time. Travel time that keeps an employee away from
home overnight is work time when it cuts across the regular
work day. Only hours spent in travel during the regular work day
are counted as work time.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Overnight Travel DWD 272.12 (2)(g)
If travel is not on a regularly scheduled work day, only those
hours that would be work hours on a normal day should be
counted.
If the employee is offered public transportation and requests to
drive a personal vehicle instead, the employer may count the
time spent driving, or the time the employee would have spent
on the public transportation.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Work Performed while Traveling DWD 272.12 (2)(g)
Work Time. Any work which an employee is required to
perform while traveling even if it is not during regularly
scheduled hours.
Nonwork Time. Bona fide meal and sleep periods.
HOURS WORKED BY NONEXEMPT
EMPLOYEES
• Remember that an employee may not “volunteer” for his/her
employer, to perform extra duties related to his/her job
• Employees cannot “waive” payment for compensable time
HOURS WORKED BY NONEXEMPT
EMPLOYEES
Examples of Nonwork Time
• Attendance at a college or trade school after hours on the
employee’s own initiative, even if the course is related to the
employee’s job.
• Attendance outside of working hours at specialized or follow
up training that is required by law for certification.
SUMMARY
• There is no distinction in timekeeping requirements between
nonexempt university staff and nonexempt academic staff
• Overtime or comp time is earned after 40 hours worked in a
workweek and paid time off does not count toward the 40
hours
• 30 minutes or more for a lunch to be unpaid
SUMMARY
• The employer must pay for any work done by a nonexempt
employee of which it had knowledge even if the work was not
officially approved.
• Any work performed by the nonexempt employee which the
employer allows and does not affirmatively stop is paid work
time.
QUESTIONS?