fair labor standards act (flsa) issues don’t let it give you a run for your money!

Fair Labor Standards Act (FLSA)

IssuesDon’t let it give you a run for your

money!

Texas A&M University, Human Resources

DIVISION OF FINANCE

February 29, 2012

Human ResourcesHRL FLSA Presentation February 29, 2012

We will cover

Basic FLSA provisions Exempt vs Non-exempt Breaks Overtime & Compensatory Time Travel time Other Working Time issues


Minimum Wage

Federal & State of Texas$7.25 per hour

No exceptions have been identified at TAMU


Recordkeeping

No specified format as long as necessary elements present

Time clocks not required Rounding (nearest 15 minutes) Keep records for a MINIMUM of three years


FLSA Exempt vs Non-Exempt

Exempt employees No overtime No comp time (one exception) Salary for specific job that cannot be reduced

(except as provided by law) Exempt categories used at TAMU

Executive, Administrative & Professional


FLSA Exemption Requirements

Salary Basis Test ($455 per week, $23,660 per year)

Plus one or more of the following: Job duties and responsibilities Supervision of employees Management of a department, unit or recognized sub-division Authority to hire/fire employees Office or non-manual work directly related to the management or general

business operations Primary duty includes exercise of discretion and independent judgment with

respect to matters of importance (eg, Finance, Budgeting, Research, HR, Legal and Regulatory Compliance)

Requires knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (eg, Law, Medicine, Accounting, Engineering, Physical Sciences)


Breaks

Meal breaks are not mandatory, but if given, must meet all three conditions or it is compensable: Minimum of 30 minutes Relieved of all duties Free to leave work location

Rest breaks are not mandatory, but if given, should meet the following: 20 minutes or less Applied consistently Consider a written policy Breaks are not be combined or added to other rest breaks or meal

breaks - the time may become non-compensable


Lactation Breaks

Nursing mothers must be allowed to take periodic breaks as necessary during a 1-year period following the birth of their child

If rest breaks are allowed by the department, lactation breaks are compensable to the extent that other employees are given breaks (if required lactation breaks exceed the number/time allowed for rest breaks, these extra breaks are not compensable, but must be allowed)

Flex schedules should be considered to accommodate non-compensable lactation breaks (eg arriving 15 minutes early, staying 15 minutes late, shortened lunch break)

A specific area need not be permanently set aside, but it must be private, screened from view and not subject to interruptions (must NOT be a toilet area)

http://rules-saps.tamu.edu/PDFs/31.99.99.M0.02.pdf


Federal Overtime

All non-exempt employees are eligible for overtime (including student workers, part-time and wage employees)

Hours worked in excess of standard 40-hour workweek (Thursday through Wednesday for TAMU)

Calculated at 1 ½ times the standard hourly rate


Federal Comp Time

Can be given in lieu of overtime payment, but only for public employees

Accrues at 1 ½ times the standard hourly rate Cannot exceed 240 hours for most employees

(480 hours for some seasonal workers, police, fire and EMS personnel)

Never expires Exempt employees are not eligible for federal

overtime or comp time


Federal Comp Time

TAMU System Regulations state: To minimize liability for federal compensatory time, overtime compensatory time should be used within 12 months from the time it is earned, if practical; if not used it should be paid

Employers may require employees to use federal comp time reserves Before using vacation time Even if employee has not requested time off

Employer must allow employee to take federal comp time when requested, unless it would base serious disruption to teaching, research or other critical functions


State Comp Time

Earned when combination of hours worked and paid leave exceeds 40 hours in a work week

Accrues on an hour-per-hour basis (straight time) No maximum accrual Must be used within 12 months from the pay period in

which it is earned or it is lost (cannot carry forward) Can only be paid on an exception basis (eg if allowing

State comp time off would cause serious disruption to normal teaching, research or other critical functions)


State Comp Time

May not be paid upon termination but can remain on payroll to expend comp time

Exempt employees required to work on a scheduled holiday will accrue equivalent State comp time to be taken within 12 months following the pay period in which it is accrued (this is the only situation in which an exempt employee can accrue comp time)


Comp Time Summary

Federal Hours worked exceed 40 in a work week Never expires 240 (or 480) hour maximum accrual Should be paid after 12 months to minimize liability

State In excess of 40 hours worked plus paid leave in a work

week Expires after 12 months No accrual maximum Paid only by exception


Travel time

Travel Time (Not paid for exempt employees) Daily commute is not compensable Same day travel to/from a different location is

compensable (less regular commuting time) Overnight trips - travel that occurs during normal

working hours, regardless of the day of the week, is compensable (non-exempt driver of a vehicle will be compensated for all hours of the journey)

Airport connections not normally compensable


Other Issues

Meetings/Lectures/Training - compensable unless: Voluntary, AND Outside working hours, AND Not related to regular job, AND No productive work is accomplished

On-Call Duty requires written policy approved by HR


Other Issues

Dual employment May involve overtime depending on primary job

Outside employment Pay deductions


Summary

Minimum Wage Recordkeeping Exempt vs Non-exempt Federal Overtime Federal & State Comp Time Meal, Rest and Other Breaks Travel Time Meetings, lectures and training


Any Questions?

John C WilliamsJohn C WilliamsSenior Classification & Compensation AnalystSenior Classification & Compensation Analyst

[email protected]@tamu.edu845-1466845-1466

Michelle SteedlyMichelle SteedlyManager, CompensationManager, Compensation

[email protected]@tamu.edu862-3904862-3904

Main Compensation Office #: 845-4170Main Compensation Office #: 845-4170

fair labor standards act (flsa) issues don’t let it give you a run for your money!

Documents

flsa issuesdont

breaksmeal breaks

extra breaks

periodic breaks

childif rest breaks

work locationrest breaks

nonmanual work

specific job