Fair Labor Standards Act (FLSA)

1
Fair Labor Standards Act (FLSA)

• Presented by
• County of Riverside Human Resources
• Debbie Shinn
• Jennifer Moquin

2
Fair Labor Standards Act (FLSA)

• Requires employers to compensate non-exempt
  employees one-and-one-half-times their regular
  rate of pay, for hours actually worked over 40 in
  an FLSA work week.
• Exempt employees are not entitled to receive FLSA
  overtime.

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What is changing?

• The Countys Classification Compensation Unit
  is reviewing all job classifications to determine
  whether each class is exempt or non-exempt.
• Some classifications will move from exempt to
  non-exempt others will move from non-exempt to
  exempt. (Please see the Class and Salary listing
  located on www.workforceexchange.net under
  Resources for the latest update.)

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Who is subject to the overtime changes?

• FLSA overtime applies to non-exempt employees
  within the following Bargaining Units
• SEIU
• LIUNA
• As well as
• Non-exempt employees covered by the Management
  Resolution.
• Exempt employees are not eligible for overtime
  pay under FLSA rules.

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FLSA Overtime Calculations

• Overtime is based on time actually worked over 40
  hours in an FLSA work week (not time paid). For
  example, Suzie reported 32 hours Regular, 8 hours
  Vacation and 4 hours Overtime. Suzie is not
  eligible to be paid time and one half for the
  overtime hours, since she worked fewer than 40
  hours in the FLSA workweek.

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FLSA Overtime Calculations

• An FLSA work week is based on an employees FLSA
  schedule as listed in Time Labor.
• FLSA work weeks consist of 168 consecutive hours
  (7 days x 24 hours per day).

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FLSA Work Schedules

• Overtime will not be evaluated accurately unless
  the correct FLSA schedule is updated in
  PeopleSoft HRMS.
• Timekeepers will be given detailed instructions
  for updating these schedules in HRMS.

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How the System will Account for 9/80 Days

• In the example above, John works a 9/80 schedule
  with non pay week Monday off. For those on 9/80
  schedules, the 8 hour day is divided in half.
  (For example, hours between 8 a.m. and noon would
  fall in FLSA Week 1. Hours between 1230 and
  430 p.m. would be in FLSA Week 2.)

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FLSA Rate

• FLSA rate is computed as
• (Total hours worked x the pay rate) (total cost
  of applicable differentials) divided by the total
  hours worked (including overtime hours) average
  FLSA rate.
• Example Employee's pay is 10.00 per hour. The
  employee has 32.00 in differentials earned and
  has worked 40 regular hours, and 6 overtime
  hours. The FLSA rate will be computed as (46 x
  10.00) 32.00)/46 10.70. The FLSA Overtime
  rate is 10.70 x 1.5 16.05.

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Evaluation of Hours Worked

• At the end of the pay period, time worked in
  excess of the employees schedule will be
  evaluated and compared to the FLSA work week. If
  the FLSA work week has not been completed during
  the pay period, hours in excess of the scheduled
  hours will be paid at straight time (XOT).
• The following pay period the entire FLSA workweek
  will be re-evaluated and eligible hours (those
  worked over 40 in the FLSA work week) will be
  adjusted and paid at the FLSA overtime rate.
• After re-evaluation, if the hours are not
  eligible for FLSA overtime there will be no
  adjustment made in the following pay period.

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Time Sheet Examples
John Smith works a 9/80 schedule, with non-pay
week Monday off. During the pay period of
4/12/07 through 4/25/07, John is claiming that he
has worked 2.0 hours overtime during the current
pay period.
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In the paycheck sample 4/12/07 4/18/07 Mr.
Smith was compensated .5 straight time on
4/17/07. The system evaluated the time as
straight time since Mr. Smith had taken vacation
and the total hours worked were less than 40.
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The additional 1.5 hours were paid at straight
time for 4/19 and 4/25/07. The hours for 4/19/07
would not be considered overtime since Mr. Smith
took vacation and did not work over 40 hours.
The half hour on 4/25/07 will be evaluated in the
following pay period.
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• If it is determined that John Smith had worked
  over 40 hours during FLSA Week 3, Mr. Smith
  would see an adjustment for the remaining time on
  the following paycheck.

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Summary

• Overtime adjustments will be made after the FLSA
  schedule is complete and evaluated.
• Overtime is paid on FLSA weeks completed during
  the pay period.
• The 9/80 day will be split in half to total 40
  hours scheduled in each FLSA work week.

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FLSA

• Lets review what has changed regarding payment
  of FLSA Overtime at the County of Riverside.

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ReviewChoose the best answer

• John is a Custodian and works five 8 hour days,
  Monday through Friday (his FLSA schedule is
  Thursday through Wednesday). Monday is a holiday
  and John is paid for 8 hours holiday. John
  worked 10 hours each day on Tuesday, Wednesday,
  Thursday and Friday. How much overtime would
  John be entitled to in the pay period?

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ReviewChoose the best answer below

• A.) John is entitled to 4 hours overtime
• B.) John is not entitled to overtime
• C.) John is entitled to 8 hours overtime

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Answer

• B.) John is entitled to 4 hours overtime.
• Due to the holiday in Week 1, John only had 36
  hours worked including the 4 hours overtime
  reported. During FLSA Week 2 John had 44 hours
  worked, therefore John would receive 4 hours paid
  at straight time in FLSA Week 1 and 4 hours paid
  at time and one half for FLSA Week 2.

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ReviewChoose the best answer

• Jim periodically is required to stay late for his
  job as a Department Director. Jims position is
  considered exempt. Below is an example of Jims
  timesheet. How much overtime is Jim entitled to
  be paid?

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ReviewChoose the best answer

• A.) Jim is entitled to 9 hours overtime.
• B.) Jim is entitled to 5 hours overtime,
  since he only had 36 hours worked in week 1.
• C.) Jim is not entitled to any overtime.

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Answer

• C.) Jim is not entitled to any overtime.
  Since Jims classification is exempt, he is
  exempt from Federal overtime regulations.