Fair Labor Standards Act (FLSA)

1. Fair Labor Standards Act (FLSA) Presented by: April Underwood, Compensation Consultant Scott Shimoda, Compensation Consultant 2013

2. Fair Labor Standards Act (FLSA) • Overview of federal law • Exemptions • Requirements for Non-exempt • Recordkeeping • Compensable Time • Overtime • Multiple Jobs @ IU • Meal & Rest Periods • Travel • Training, Volunteers and Internships

3. Fair Labor Standards Act (FLSA) Legal Compliance Introduction

4. Fair Labor Standards Act (FLSA) • UHRS • University Compensation Services • FLSA impacts IU policies & employees • FLSA & supervisors • Past FLSA violations at IU • Willful violations • May 2000 • Back wages • Future violations

5. Fair Labor Standards Act (FLSA) Legal Compliance Overview of Federal Law & Exemptions

6. Fair Labor Standards Act (1938) Enacted to protect workers • Establishes minimum wage - $7.25 on July 24, 2009 • Overtime pay • Record keeping • Required Posters • Child labor requirements

7. Fair Labor Standards Act (FLSA) U.S. Department of Labor (DOL), Wage & Hour Office • Administers act and investigates complaints • Burden of proof is on employer • www.dol.gov – regulations, file complaints, etc.

8. FLSA Exemption Tests(from minimum wage and overtime) • Salary Requirements • Duties Tests • Both salary and duties test must be satisfied to classify positions as Exempt (PAE) • Primary Duty

9. Exempt vs. Non-exempt Positions Exempt Positions Non-exempt Positions Hourly based compensation Must track all hours worked Eligible for overtime • Salary based compensation • Does not track hours worked • Does not earn overtime • Limitations on deductions from daily/weekly pay

10. Fair Labor Standards Act (FLSA) Legal Compliance Requirements for non-exempt

11. Non-exempt IU Employees • Professional Staff - PAO • Primary duties do not satisfy FLSA duties test • Professional Staff – PAU • FLSA salary requirement not met • Support and Clerical Staff • Service Staff • General Supervisors - GS • Hourly & Student Hourly Employees

12. Recordkeeping Responsibilities • Non-exempt Employees • Complete timesheets daily/weekly • Record hours worked, compensatory time & time-off • Managers • Approve overtime in advance • Verify hours worked and time-off • Approve timesheet bi-weekly • Department • Retain records

13. What is Compensable Time? • Start & End of Principal Activity each day • Suffer or Permit to Work • Time spent preparing and finishing up • Waiting time

14. Overtime Pay • Paid overtime for hours worked over 40 in the work week. • Employees may be subject to disciplinary action if supervisor does not approve overtime work in advance • Calculating Overtime

15. Compensatory Time • Definition of Comp time • Supervisor must communicate to employee how overtime will be compensated • Maximum Accumulation per IU policy

16. Employees with Multiple Jobs • IU is one employer • Paid for all hours • Overtime pay for total hours worked over 40 • Valid Multiple Job Combination Chart

17. Meal and Rest Periods • Meal periods • Rest periods • IU Policy

18. Travel Time • Home to Work (Normal Commute) • One Day Assignment • Overnight Travel

19. Training, Volunteer & Unpaid Internships • Training Time • Volunteer Time • Unpaid Internships

20. Fair Labor Standards Act (FLSA) Legal Compliance Examples

21. Fair Labor Standards Act (FLSA) Legal Compliance Conclusion/Questions