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Fair Labor Standards Act (FLSA)


Title: Fair Labor Standards Act (FLSA) Author: Human Resources Last modified by: Vi Jackson Created Date: 8/7/2007 5:11:39 PM Document presentation format – PowerPoint PPT presentation

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Title: Fair Labor Standards Act (FLSA)

Fair Labor Standards Act (FLSA)
  • Presented by
  • County of Riverside Human Resources
  • Debbie Shinn
  • Jennifer Moquin

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

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.)

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

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.

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).

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.

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.)

  • 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.

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.

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.
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.
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.
  • 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.

  • 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.

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

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?

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

  • 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.

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?

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.

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