website introduction to compensation

7/28/2019 Website Introduction to Compensation

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Introduction to

Compensation
http://www.marquette.edu/


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Agenda

Marquette Universitys compensation philosophy

What is the Fair Labor Standards Act (FLSA)?

Definition and differences between exempt or nonexempt

How is exemption status determined by Human Resources

Implications of noncompliance with the FLSA

Administrative guidelines to create a brand new position and

requesting job reevaluations


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Total Compensation Philosophy

Align with Marquettes mission

Meet the following objectives:

Mission driven

Internally equitable & externally competitive

Performance based

Valid & reliable

Consistent

Compensation Program

Ten compensable factors used to classify positions Broadband structure

Band placement is determined by PEQ evaluation

Placement within the band is determined by the market


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What do you know about

FLSA?


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Fair Labor Standards Act (FLSA)

Enacted in 1938

Federal law which governs minimum wage, overtime pay,

recordkeeping, and child labor.

The Wage and Hour Division of the US Dept. of Labor enforces

the FLSA. Almost every employee in the US is covered under FLSA.

Covers Overtime

Minimum Wage

Child Labor Equal Pay

Recordkeeping


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FLSA Continued

Employees are entitled to be paid at least the Federal

minimum wage ($7.25 p/hour) as well as 1 their regular rate

of pay for all hours worked over 40 in a workweek, unless an

exemption applies.

The most common FLSA minimum wage and overtime

exemption applies to exempt employees who must perform

executive, administrative, or professional duties.


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Exempt and nonexempt

Employees who qualify as "exempt" are exempt fromovertime regulations (and minimum wage laws), whereas"nonexempt" employees must be paid for every hour ofovertime they work.

Non-exempt employees are normally required to accountfor hours and fractional hours worked.

Exempt employees must meet three tests for eachexemption: salary level, salary basis, and job duties.

*All Business (11/7/2004)


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Exempt and nonexempt Cont.

Exempt and nonexempt status has little to do with job

titles and whether an employee is salaried or receives an

hourly wage.

The legal definition of "exempt" and "nonexempt" has

more to do with an employee's level of responsibility.

In general, the more responsibility and independence ordiscretion an employee has, the more likely the

employee is to be considered exempt.


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Nonexempt Requirements

Time worked recordkeeping

Time and day of week when workweek begins

Hours worked each day

Total hours worked each workweek

Basis on which wages are paid (i.e., per hour, piecework)

Regular hourly pay rate

Total daily or weekly straight-time earnings

Total overtime earnings

Additions to or deductions from wages Total wages paid each pay period

Date of payment and pay period covered by payment


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Exempt Requirements

Three Tests for Exemption

Salary levelminimum of $455 per week or $23,660 annually.

Salary basisregularly receives a predetermined amount ofcompensation each pay period.

Job duties Executive: primary duty is management.

Administrative: performance of work directly related to generalbusiness operations and exercises discretion.

Professional: learned (requires advanced knowledge), outsidesales (making sales away from employers place), highly skilledcomputer employees, creative (performance of work in an artisticor creative field).


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Examples of nonexempt and exempt

Nonexempt

Service maintenance employees

Office coordinators/associates

Nurses

Exempt

Professors

Business Operations Managers

Lawyers


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Common FLSA Violations

Compensatory time off

Failure to pay for unauthorized hours worked

Failure to pay for all recorded hours

Inaccurate records


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Implications of noncompliance with

the FLSA Department of Labor representatives investigate wages,

hours, and other employment practices.

Burden of proof is on the employer.

If violations are found, the employer may be subject to: Pay back wages

In 2007, the Wage and Hour Division recouped over $220million in back wages

Fines

Up to $10,000

Civil money penalty of up to $1,000 for each such violation

Liquidated damages Attorneys fees and costs

1. Automatic Data Processing, 2008


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How does HR classify positions?

1. Review jobwhat is the primary purpose of the position

and how do the duties fit with the purpose of the position?

2. Utilize resourcesorganization charts, compare to similar

university (and/or external) positions and other educational

institutions3. Department of Labor and WI Department of Workforce

Development guides and articles

4. May seek advice from third party agency or legal counsel


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Position Procedures

Creating a brand new position

Must receive verbal approval from the Dean, Provost or VP.

Requesting department sends a Job Evaluation Request form,

completed Position Evaluation Questionnaire (PEQ), and a Job

Description to Human Resources.

Human Resources will assign the job classification (according toFLSA requirements), position code, and market salary range.

Requesting job reevaluations

Can be made for individual position or whole department/college .

Requests can be made after 12 months or if significant changes to

the position have been made.

Requesting department sends a Job Evaluation Request form,

completed PEQ, and an updated Job Description to Human

Resources.

Human Resources will review classification and changes.


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Questions.


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Resources

Compensation Program Resources

http://www.marquette.edu/hr/CompensationProgramResources.shtml

UPP 4-01: Compliance with the FLSA

http://www.marquette.edu/upp/hr.shtml

UPP 4-10: Flextime

http://www.marquette.edu/upp/hr.shtml

US Department of Labor

http://www.dol.gov/whd/flsa/index.htm


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Contact Information

Mayra Cardenas

HR Manager

414.288-7935

[email protected]

Lynn Mellantine

Assistant Director

414.288.3430

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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