Presented by:

April Underwood, Compensation Consultant

Scott Shimoda, Compensation Consultant

2013

Fair Labor Standards Act (FLSA)

Fair Labor Standards Act (FLSA)

Overview of federal law Exemptions Requirements for Non-exempt

• Recordkeeping• Compensable Time• Overtime• Multiple Jobs @ IU• Meal & Rest Periods• Travel • Training, Volunteers and Internships

INTRODUCTION

Fair Labor Standards Act (FLSA)

Legal Compliance

Fair Labor Standards Act (FLSA)

UHRS University Compensation Services FLSA impacts IU policies & employees FLSA & supervisors Past FLSA violations at IU

• Willful violations• May 2000• Back wages• Future violations

OVERVIEW OF FEDERAL LAW & EXEMPTIONS

Fair Labor Standards Act (FLSA)

Legal Compliance

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

REQUIREMENTS FOR NON-EXEMPT

Fair Labor Standards Act (FLSA)

Legal Compliance

Non-exempt IU Employees

Professional Staff - PAO • Primary duties do not satisfy FLSA duties test

Professional Staff – PAU• FLSA salary requirement not met

Support and Clerical Staff Service Staff General Supervisors - GS Hourly & Student Hourly Employees

Recordkeeping Responsibilities

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

Home to Work

(Normal Commute)

One Day Assignment

Overnight Travel

Training, Volunteer & Unpaid Internships

Training Time

Volunteer Time

Unpaid Internships

EXAMPLES

Fair Labor Standards Act (FLSA)

Legal Compliance

CONCLUSION/QUESTIONS

Fair Labor Standards Act (FLSA)

Legal Compliance