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The Fair Labor Standards Act (FLSA)

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The Fair Labor Standards Act (FLSA) Employment Services 303-492-6475 * * * * Training Outline What is FLSA? Who does FLSA apply to? How is overtime eligibility ... – PowerPoint PPT presentation

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Title: The Fair Labor Standards Act (FLSA)


1
The Fair Labor Standards Act (FLSA)
  • Employment Services 303-492-6475

2
Training Outline
  • What is FLSA?
  • Who does FLSA apply to?
  • How is overtime eligibility determined?
  • When can a position be exempt from overtime?
  • When, where and how is overtime calculated and
    paid?
  • What records do I need?
  • Who does what?
  • Will I remember all this?

3
What is FLSA?
  • Fair Labor Standards Act (FLSA) est.1938 governs
    many areas. Those areas most important to us may
    be
  • Minimum wage
  • Colorado 7.28 per hour effective 1/1/09
  • Federal 7.25 per hour effective 7/24/09
  • Exemption Criteria
  • Overtime (OTM) Pay
  • Record keeping requirements

4
Who does FLSA apply to?
  • Employment relationship between an employer and
    an employee, including
  • Classified employees
  • Exempt-Professional employees
  • Faculty and Research employees
  • Student employees
  • Temporary employees
  • All employees are covered, but some may be
    exempt from OTM or minimum wage requirements

5
Definitions
  • FLSA
  • Exempt NOT eligible for overtime
  • Not entitled to additional compensation for hours
    worked over 40 in a work week
  • Non-Exempt ELIGIBLE for overtime
  • MUST be compensated (in salary or time off) at
    the rate of time-and-a-half for all hours worked
    over 40 in a work week
  • Colorado State Personnel System
  • Exempt Not classified, i.e., exempt from the
    state personnel system
  • (exempt-professional employees)

6
How is overtime eligibility determined?
  • Classified Staff
  • Employment Services designates overtime status of
    each position. Usually will be documented on
    classification decision notice.
  • Officer Exempt Professional Staff
  • Overtime status reviewed and determined by
    Employment Services at time position is created
    based on duties of job
  • Faculty
  • Typically exempt from OT
  • Student Employees
  • Typically eligible for OT

7
When can a position be exempt from overtime?
  • Salary Basis
  • must be paid on a salaried basis, not hourly
    (except for teachers, doctors, lawyers, and
    computer professionals currently paid at least
    27.63/hr)
  • Minimum Salary Threshold
  • Currently must be paid a minimum of 455 per week
    or 23,660 per year (except for teachers,
    doctors, and lawyers)
  • Job Duties Test
  • must also be assigned job responsibilities that
    fall into one of the categories for exemption

8
Exemption Categories
  • Executive
  • Administrative regular and academic
  • Professional
  • Learned Professional doctors, lawyers, teachers
  • Creative Professional artists, musicians,
    creative writers
  • Computer Employee
  • Outside Salesperson
  • Highly Compensated
  • Employee makes more than 100,000 per year and
    meets other exemption criteria

9
Exempt Positions
  • NOT eligible for OT due to salary and level of
    responsibilities
  • May be required to complete time records and must
    track use of leave
  • Appointing authority can schedule work hours
  • Full-time public employees expected to work
    minimum 40 hours a week
  • Administrative leave or incentive awards may be
    used to compensate extraordinary efforts but not
    tied to hours worked

10
When is overtime paid?
  • Overtime is paid when more than 40 hours are
    worked in a work week
  • Standard CU Workweek
  • Sunday 1201 a.m. through Saturday midnight

11
How is overtime compensated?
  • 1 ½ times the regular rate of pay for all hours
    worked over 40 in a work week
  • Paid as salary or compensatory time off in lieu
    of cash if agreement has been signed

12
Additional Comp Time info
  • Comp Time Agreement
  • Should be condition of hire in offer letter or
    overtime policy
  • Comp time is NOT leave, but a form of
    compensation
  • Must be scheduled as soon as practical
  • Comp time balance is paid out upon transfer or
    termination or when balance exceeds 240 hours

13
Where is overtime paid?
  • Overtime in HRMS Time Collection
  • Enter total number of hours worked in excess of
    40 hrs/wk using appropriate earnings code
  • OTM Overtime
  • SOT Student Overtime
  • HRMS will calculate the 1 ½ rate
  • Example
  • Larry works 4 hrs overtime
  • PPL enters 4 hrs OTM or SOT in Time Collection
  • Larry will receive 6 hrs extra pay, which is
    equivalent to 4 hours at 1 ½ times his hourly
    rate

14
Where is overtime paid?
  • Comp Time
  • Comp time earned and taken is typically tracked
    outside of HRMS, possibly on the employees work
    record
  • Dept work records are the official record for
    comp time balances
  • Comp time taken may be recorded in HRMS
  • Use earnings code CMP

15
How is it calculated?
  • Hours worked for purposes of OT do not include
  • holidays, vacation, sick or admin leave (except
    for essential services positions), or comp time
    taken

16
How is it calculated?
  • Work hours can not be averaged across more than
    one week. For example
  • Work hours can not be averaged at the end of the
    month
  • Hours worked in excess of the regular schedule in
    one week cannot be used for time off in any other
    week

17
How is it calculated?
  • Overtime is calculated on a weekly basis
  • Overtime does not accrue when an employee works
    beyond his/her regular daily schedule

18
Overtime Examples
Sunday Monday Tuesday Wed Thursday Friday Saturday
8 8 8 8 8
Week 1
40 hours worked. No overtime accrued for this
work week.
Sunday Monday Tuesday Wed Thursday Friday Saturday
8 8 8 8 8 4
Week 2
44 hours worked. 4 hours at 1 ½ rate 6 hours
extra pay or comp time.
Sunday Monday Tuesday Wed Thursday Friday Saturday
Holiday 8 8 8 8 4
Week 3
36 hours worked. No overtime accrued for this
work week for non-essential services employees.
19
Essential Services and Overtime
  • Essential positions support services directly
    responsible for health, safety, and welfare of
    patients, residents, or students
  • Typically designated by Vice Chancellor
  • Department should note on special requirements
    page of PDQ
  • Per State Personnel Rules, paid leave counts as
    work time when calculating overtime for essential
    employees

20
Can Overtime be waived? NO!
  • Once overtime has been worked (whether approved
    or not), it must be compensated
  • Unauthorized overtime may be cause for corrective
    action
  • Communication is key
  • Departments should have procedures in place for
    requesting overtime approval requirements
  • Preferred method is to use comp time in lieu of
    cash

21
What records do I need?
  • Time/work records shall be kept for both exempt
    and non-exempt employees
  • Both employee and supervisor must verify and sign
    work records
  • Departments may select work records they wish to
    use (see PBS website for suggested forms)
  • Records should be kept for minimum of 5 years (7
    years or more for positions funded from grants)

22
Who does what? HRs Role
  • Designate overtime status for positions
  • Advise departments on developing overtime/comp
    time policies
  • Assist with questions from employers and
    employees regarding overtime compensation

23
Who does what? Departments Responsibilities
  • Know who is eligible for overtime
  • Ensure employees know and understand OT policy
    and expectations
  • Do not allow employees to work extra hours
    without appropriate compensation
  • Ensure both supervisor and employee agree and
    sign work record each month
  • Ensure hours worked are documented and accounted
    for on a work record/time sheet

24
Will I ever remember all this? Additional
Resources
  • Employment Services
  • 303-492-6475 (main office)
  • http//hr.colorado.edu/es/Pages/overtimeflsa.aspx
  • PBS Procedures Guide
  • https//www.cusys.edu/pbs/proceduresguide/
  • Employee Work Record forms
  • http//www.cu.edu/pbs/forms/
  • Record Retention Checklist
  • https//www.cu.edu/pbs/payadmin/policies/pay-recor
    ds.html
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