Fair Labor Standards Act - PowerPoint PPT Presentation

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Fair Labor Standards Act


Home to Work Emergency Situations. During emergency situations, travel from home to work is work time. ... Home to Work Special Assignment. 1 day seminar ... – PowerPoint PPT presentation

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Title: Fair Labor Standards Act

Fair Labor Standards Act
  • New Revisions go into effect
  • August 23, 2004

White Collar Exemption
  • Provides exemption from both minimum wage and
    overtime pay for employees who are
  • Executive
  • Administrative
  • Professional
  • Certain Computer employees

Three Tests for Exemptions (to be exempt/salary)
  • Salary Level 455.00 per week or 23,660.00 per
  • Salary Basis not paid by the hour
  • Job Duties

Executive Duties(Presidents Circle)
  • Primary Duty is management of organization, dept
    or subdivision
  • Customarily and Regularly directs work of 2 or
  • Authority to hire/fire or recommendations are
    given particular weight.

Administrative Duties
  • Primary Duty is the performance of office or
    non-manual work directly related to the
    management or general business operations of the
    employer or the employers customers and
  • Whose primary duty includes the exercise of
    discretion and independent judgment with respect
    to matters of significance.

Discretion and Independent Judgment
  • Comparison and evaluation of possible courses of
    conduct, and acting or making a decision after
    possibilities have been considered.
  • Exercised with respect to matters of
    significance which refers to the level of
    importance or consequence of the work performed.
  • Decisions and recommendations may be reviewed at
    a higher level and on occasion, revised and

Discretion and Independent Judgment does not
  • Applying well established techniques, procedures
    or specific standards described in manuals or
    other sources.
  • Clerical or secretarial work
  • Recording or tabulating data
  • Performing mechanical, repetitive , recurrent or
    routine work.

Learned Professional Duties
  • The employees primary duty must be the
    performance of work requiring advanced knowledge.
  • In a field of science or learning
  • Customarily acquired by a prolonged course of
    specialized intellectual instruction.

Advanced Knowledge
  • Predominately intellectual in character
  • Includes work requiring the consistent exercise
    of discretion and judgment
  • The advanced knowledge is generally used to
    analyze, interpret or make deductions from
    varying facts or circumstances
  • Not work involving routine mental, manual,
    mechanical, or physical work
  • Cannot be attained at the high school level.

Creative Professionals
  • The employees primary duty must be in the
    performance of work requiring invention,
    imagination, originality or talent in a
    recognized field of artistic or creative endeavor.

Prescott College Changes from Exempt to Non-exempt
  • Admissions Counselors
  • Assistant Registrars
  • Financial Aid Counselors
  • Student Activities Coordinator
  • Warehouse Manager
  • Academic Computing Support Specialist
  • Hardware/Network Specialist
  • Business Office Staff
  • Library Circulation Supervisor

Non-exempt (hourly) Travel
  • Non-exempt must be paid for all time considered
    "working time."
  • Whether travel time is counted as working time
    depends on when the travel takes place and what
    kind of travel is involved.

Home to Work Emergency Situations
  • During emergency situations, travel from home to
    work is work time.
  • If an employee is called out after work at night
    to travel a substantial distance to perform an
    emergency job, travel time is working time that
    must be paid.

Home to Work Special Assignment1 day seminar
  • Pay for time spent traveling to a seminar,
    training session, or work assignment that lasts
    for a day.
  • You must also pay for all time spent at the
    seminar or training session, or
  • while working on the assignment

Travel as part of the days work
  • Time an employee spends traveling as part of
    their principal activity (travel from job site to
    job site during the workday).
  • If an employee must report at a meeting place to
    receive instructions, perform other work, or pick
    up certain items for work, the travel from the
    meeting place to the work site is part of the
    day's work and counts as hours worked.

Overnight Travel
  • If a non-exempt employee travels to a seminar,
    training session, or work assignment, and leaves
    the day before the seminar or work begins, you
    only have to pay for the travel time that
    (overlaps) the employee's regular workday (8-5).
  • The employee is simply substituting travel for
    other work duties.

Non-Exempt Travel Time
  • Travel time on nonworking days is also considered
    work time if conducted during normal work hours.
  • If your employee is regularly scheduled to work 8
    a.m. to 5 p.m., Monday through Friday, travel
    time on a train, bus, airplane or in an
    automobile during these hours is hours worked on
    Saturday and Sunday, as well as on the other
  • You may deduct normal meal periods from the
    travel time, as long as the employee does not
    perform work during the meal period.

Work Performed While Traveling
  • Finally, travel time during non-work hours is
    considered work time that must be paid if the
    employee actually performs work while traveling.

Hourly/Non-exempt Travel Review
  • Employees who travel on the same day they attend
    a seminar or perform work are paid for all the
    time spent traveling.
  • However, employees who travel on one day and
    attend the seminar or perform the work the next
    day are compensated only for the time that cuts
    across their normal workday.

Problem Employees?
  • Anytime worked, authorized or not must be paid.
  • Progressive Discipline
  • Have the employee's supervisor review his/her
    timecard every Tuesday morning. If working a full
    day will put him/her into an overtime status, let
    them work the remaining hours to fulfill the 40
    and then send them home.

Additional Work for PC (Non-exempt)
  • If a non-exempt employee takes on additional work
    for the College (mentoring, modeling, graduation,
    independent studies, parents weekend, alumni
    weekend, orientations,etc.) the hiring dept. for
    the additional work will be responsible for the
    payment of overtime rates.
  • Timecards must be turned in for this kind of work
    during the pay period in which the work was
  • A blended rate of the employees regular job and
    the hourly rate for the additional work will be
    used to determine the overtime rate.
  • This also includes work study employees.
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