Fair Labor Standards Act (FLSA) Education - PowerPoint PPT Presentation

About This Presentation
Title:

Fair Labor Standards Act (FLSA) Education

Description:

Fair Labor Standards Act (FLSA) Education May 2005 Revised February 2006 Today s Facilitators Jami Painter, University Office of Human Resources painterj_at_ ... – PowerPoint PPT presentation

Number of Views:248
Avg rating:3.0/5.0
Slides: 35
Provided by: Katie134
Category:

less

Transcript and Presenter's Notes

Title: Fair Labor Standards Act (FLSA) Education


1
Fair Labor Standards Act (FLSA) Education
  • May 2005
  • Revised February 2006

2
Todays Facilitators
  • Jami Painter, University Office of Human
    Resources painterj_at_uillinois.edu
  • Campus Human Resources Representative
  • Joyce Winn, University of Illinois at Chicago,
    Academic Human Resources - jwinn_at_uillinois.edu
  • Debi Stone, University of Illinois at
    Urbana-Champaign, Academic Human Resources
    debstone_at_uillinois.edu
  • Patti Sims, University of Illinois at
    Springfield, Human Resources sims.patti_at_uis.edu

3
Todays Objectives
  • To provide education about the Federal FLSA law
    and regulations.
  • To provide an overview of the Universitys review
    process.
  • To provide a summary of the impact on affected
    employees.
  • To provide an overview of the reporting and
    record retention process for employees changing
    from exempt to salaried non-exempt status.

4
FLSA Background
  • Fair Labor Standards Act (FLSA)
  • Established in 1938 by the Department of Labor
    (DOL)
  • Purpose
  • Establishes standards for
  • Minimum Wage
  • Overtime Pay
  • Child Labor
  • DOL first issued exempt status regulations in
    1940
  • Last modification in 1954
  • Recent regulation revisions effective August 23,
    2004
  • Section 541 (29 CFR 541 et al) White Collar
    Exemptions

5
FLSA - Background
  • FLSA generally requires that employees be paid
  • At least federal minimum wage of 5.15 per hour
    (Illinois law is 6.50 per hour)
  • Overtime premium pay of time-and-one-half of the
    employees regular rate of pay for all hours
    worked over 40 in a workweek for employees in
    hourly non-exempt status.
  • Overtime premium pay of one-half of the
    employees regular rate of pay for all hours
    worked over 40 in a workweek for employees in
    salaried non-exempt status.

6
White-Collar Exemptions
  • White-collar exemptions allow for exemptions from
    these requirements.
  • Salary Test
  • Employee must be paid at least a certain
    compensation level
  • Employee is paid on a salary ,rather than hourly,
    basis and
  • Duties Test
  • Employee performs certain exempt duties.

7
White Collar Exemption Requirement 1 (Salary
Test)
  • Salary level
  • Minimum paid must 455 per week or more.
  • If paid less than 455 per week, cannot be exempt
    even if he/she meets the duties test.
  • If paid 455 per week or more, can be exempt only
    if he/she also satisfies the duties test.
  • Salary cannot be prorated based on FTE.

8
White Collar Exemption Requirement 2 (Salary
Test)
  • Form of payment
  • Employee must be paid a flat salary, not by the
    hour (Academic Monthly Salary)
  • Employee must regularly receive a predetermined
    amount that cannot be reduced because of
    variations in the quantity or quality of work
    performed

9
White Collar Exemption Requirement 3 (Duties
Test)
  • FLSA, Section 12(a)(1) provides exemption from
    minimum wage and overtime pay for bona fide
    employees in the following areas
  • Executive
  • Administrative
  • Professional
  • Outside Sales
  • Highly Compensated
  • Section 13(a)(17) also exempts certain computer
    employees.

10
University Review
  • Two cross-campus committees formed Summer of
    2004.
  • Academic
  • Civil Service
  • Representatives from University Human Resources,
    Campus Human Resources, Legal Counsel, Provosts
    Offices
  • Seyfarth Shaw Attorneys, LLP

11
Civil Service Review
  • Salary Test
  • All exempt Civil Service employees satisfied the
    salary test (455/week) based on Banner report
  • Duties Test
  • All Civil Service classifications were examined
    for duties test compliance.
  • In depth review of job descriptions, SUCSS
    classifications, and work performed was conducted
    for several classifications. Some of these
    included
  • Space Administrator III
  • Graphic Designer II
  • Assistant Program Director
  • Admissions and Records Officer II
  • Events Administrator
  • Information Supervisor
  • Budget Analyst I

12
Civil Service Duties Test
  • Selected classification review
  • State Universities Civil Service System
    classification review against FLSA regulations
  • Job description review against FLSA regulations
  • Interviews with supervisors/department heads to
    evaluate work performed against FLSA regulations
  • All Civil Service classifications currently
    classified as Exempt met the duties test for FLSA
    exemption.

13
Academic Review
  • Salary Test
  • Banner report identifying all Academic employees
    compensated below the 455/week minimum
  • Total number of Academic employees University
    wide not meeting salary test 152
  • UIC 90
  • UIS 17
  • UIUC 45

14
Academic Duties Test
  • Duties Test
  • Banner report identifying all Academic employees
    (job titles and positions)
  • Review conducted of all Academic positions.
  • In depth review (job descriptions reviewed and
    interviews with supervisors/department heads)
    based on legal counsel recommendations and peer
    institution reviews, for the following positions
  • Assistant Coaches
  • Resident Directors
  • Graduate Assistants

15
Academic Duties Test Results
  • The following positions met the duties test for
    FLSA exemption
  • Assistant Coaches
  • Resident Directors
  • Some individuals in these positions may not have
    met the salaries test, and therefore, cannot be
    classified as FLSA exempt.

16
Graduate Assistants Duties Test Results
  • The following assistantship positions met the
    duties test for FLSA exemption
  • Teaching Assistants (TA)
  • Research Assistants (RA)
  • Para-Professional Assistants (PGA)
  • TA, RA, and PGA positions primary role is that
    of student, not employee, so the salary test is
    not required.

17
Graduate Assistants Duties Test Results
  • Graduate Assistants (GA) did not meet the duties
    test and must be classified as salaried
    non-exempt
  • Re-classification as salaried non-exempt
    employees will be effective 8/16/05
  • Approximate number of GAs University wide not
    meeting duties test for 2004-2005 Academic year
    756
  • UIC 173
  • UIS 160
  • UIUC 423
  • 2005-2006 Academic year totals for GAs may vary

18
Final Review - Counts
  • Civil Service Zero employees will be changed
    from exempt to salaried non-exempt based on the
    salary and duties test.
  • Academic Professionals (AP)
  • 152 employees will be changed from exempt to
    salaried non-exempt status based on the salary
    test.
  • Zero employees will be changed from exempt to
    salaried non-exempt based on the duties test.
  • Graduate Assistants (GA) 756 employees for the
    2004-2005 Academic year would have been changed
    from exempt to salaried non-exempt status based
    on the duties test.

19
Salaried Non-Exempt Employees
  • What will change?
  • Eligibility for overtime compensation
  • Tracking hours worked
  • When will the change be effective?
  • On August 16, 2005, the following will occur
  • Exempt Indicator on NBAPOSN in Banner changed by
    Campus HR for individuals identified from the
    review who are going from exempt to salaried
    non-exempt status
  • Academic Professionals not meeting salary
    requirement begin tracking hours
  • Graduate Assistants (GAs) begin tracking hours

20
Eligibility for Overtime
  • Compensation
  • Paid predetermined salary on a monthly basis
    (Academic Monthly Payroll)
  • Eligible for overtime pay at one-half the hourly
    rate for all hours worked over 40 for each
    workweek
  • Compensatory Time
  • Monetary Compensation

21
Compensation
  • Compensatory Time
  • Employees discretion
  • Used at one-half time the number of hours worked
    over 40
  • At time of termination/separation, paid out all
    unused compensatory time at one-half the regular
    hourly rate at the time of termination/separation
  • Balances and usage maintained within the unit
  • Maximum compensatory time accumulation allowed
    240 hours

22
Compensation
  • Monetary Compensation
  • Paid at one-half the regular hourly rate
    (full-rate may be found on NBAJOBS, Job Detail
    Screen, Rate field)
  • Paid in the form of an adjustment on the job that
    the overtime was worked, following the end of the
    pay period in which the overtime was worked
  • Overtime paid in increments of 15 minutes for
    hours worked over 40 in a work week
  • 0-7 minutes 0
  • 8-22 minutes 15 (.25)
  • 23-37 minutes 30 (.5)
  • 38-59 minutes 45 (.75)

23
Overtime Payment
  • Overtime compensation in the form of pay
  • Process as an adjustment
  • Earning code ADD
  • Include dollar amount on monthly job
  • Comment field FLSA OT
  • Adjustment must be processed and paid within 13
    days of the end of the pay period
  • Job Aid to assist with performing an adjustment
    can be found at http//www.obfs.uillinois.edu/joba
    ids/DTE_PayrollAdjustments.doc

24
Tracking Hours
  • Academic Salaried Non-Exempt employees will track
    hours on the FLSA Salaried Non-Exempt Academic
    Timesheet (Excel spreadsheet)
  • Form is available in NESSIE, HR Forms section, at
    https//nessie.uihr.uillinois.edu/cf/index.cfm?ite
    m_id161
  • Form may be downloaded and saved to personal
    desktop/folder for each employee.

25
FLSA Salaried Non-Exempt Academic Timesheet
  • Report total hours worked per day
  • Automatic Calculations
  • Hours worked over 40 in each workweek
  • Number of hours due to employee in the form of
    comp time or overtime payment for each monthly
    pay period
  • Employee and Supervisor signature required on all
    timesheets in which overtime hours were accrued
  • Units may choose to collect employee timesheets
    and signatures for all months for documentation
    and retention purposes
  • Spreadsheet/paper form retained in the unit

26
FLSA Salaried Non-Exempt Academic Timesheet
27
Hiring Salaried Non-Exempt Academic Staff
  • DART calculator will be available to determine if
    employee meets the minimum salary test
  • Administrative Applications section in DART
  • FLSA exemption status should be determined BEFORE
    a verbal or written offer is made
  • Unit enters annual salary and number of months of
    service calculator displays weekly salary
  • Until calculator is available, units may manually
    determine the weekly salary by using this
    formula Annual Salary / Mo Paid / 4.333
    Weekly Salary

28
Hiring Salaried Non-Exempt Academic Staff
  • Banner Position Creation and Maintenance
  • Exempt Indicator defaults from the p-class
  • Confirm Exempt Indicator box in NBAPOSN is not
    checked
  • If checked, uncheck the field
  • Employees utilizing same p-class may have
    different FLSA exemption statuses because of
    weekly salary

29
Banner FLSA Indicator
  • Campus Human Resources will fix FLSA Indicator
    for Academic employees identified during the
    review
  • Beginning August 16, 2005, units will be
    responsible for ensuring FLSA status is correct
    (UIC and UIUC only)

30
Academic Exempt Reporting
  • Applies to the following employee groups
  • Academic Professionals (AP) who meet the 455
    salary requirement
  • Faculty
  • Teaching Assistants (TA)
  • Research Assistants (RA)
  • Para-Professional Assistants (PGA)
  • Post-Doc Research Associates/Interns

31
Academic Exempt Reporting
  • Report absences in four (4) and eight (8) hour
    increments only.
  • Part-time Academic employees report in half- and
    full-day increments based on their work schedule.
  • Example an employee who works six hours per day
    would report in three and six hour increments.
  • Employees may not accumulate time over multiple
    days to reach the 4 and 8 hour increments.
  • Example an employee who is absent two hours on
    Monday and two hours on Tuesday does not report
    four hours of absence.
  • Absences of less than 4 or 8 hours per day are
    not reported against vacation or sick leave
    usage.
  • Exempt employees are still expected to be
    available for customers/clients and perform their
    work responsibilities above and beyond the normal
    University workweek, in order to fulfill their
    professional responsibilities.

32
Summary
  • No Civil Service employees will be changed from
    exempt to non-exempt
  • All Academic Professional employees not meeting
    the minimum salary requirement (455/wk) and all
    Graduate Assistants (GAs) will be changed from
    exempt to salaried non-exempt status effective
    August 16, 2005
  • Academic Professionals not meeting salary
    requirement and all GAs will begin tracking
    hours on FLSA Salaried Non-Exempt Academic
    Timesheet August 16, 2005
  • Units responsible for determining FLSA exemption
    status and verifying FLSA Indicator in Banner
    August 16, 2005 (UIC and UIUC only)
  • Exempt Academic employees report absences in 4
    and 8 hour increments only (full- and half-day
    for part-time employees)

33
Online Resources
  • FLSA Information and Resources https//hrnet.uihr.
    uillinois.edu/dart-cf/index.cfm?Item_id2734
  • FLSA Salaried Non-Exempt Academic Timesheet
    (NESSIE HR Forms, Policy/Labor, and Leave
    sections) https//nessie.uihr.uillinois.edu/cf/ind
    ex.cfm?item_id161
  • Pay Adjustment Job Aid http//www.obfs.uillinois.e
    du/jobaids/DTE_PayrollAdjustments.doc
  • 2006 Payroll Schedule http//www.obfs.uillinois.e
    du/earnings/2006payrollschedule.xls
  • DART Administrative Applications
    https//eas.admin.uillinois.edu/eas/servlet/EasLog
    in?redirecthttps//hrnet.uihr.uillinois.edu/dart-
    cf/admin/index.cfm

34
Fair Labor Standards Act
  • QUESTIONS?
Write a Comment
User Comments (0)
About PowerShow.com