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July, 2004

Computer Jobs & the FLSA. July, 2004. The Fair Labor Standards Act. Regulations first passed in 1938, and recently revised, were written to provide employees with various protections in the workplace, such as: Minimum wage Child labor laws

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July, 2004

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  1. Computer Jobs & the FLSA July, 2004

  2. The Fair Labor Standards Act • Regulations first passed in 1938, and recently revised, were written to provide employees with various protections in the workplace, such as: • Minimum wage • Child labor laws • Overtime guaranteed after 40 hours worked in a week. The purpose of the recent revisions is to strengthen the overtime protection provisions

  3. Hourly vs. Salaried • The FLSA’s standard is that a job is hourly (non-exempt) unless the employer can prove that the job is “exempt” from the hourly standard • It lists types of exempt jobs: executive, administrative, professional, and outside sales (Computer jobs are reviewed under the professional exemption.) • The FLSA directs the Department of Labor to define the exempt terms.

  4. Department Of Labor Definitions • The DOL defines exempt jobs as those meeting these 3 tests: • Salary Level Test • Salary Basis Test • Salary Duties Test (Analysis based on duties not job title)

  5. Salary Level & Basis Tests • Employee must be paid at least $23,660 ($455 per week) • Employee must receive a pre-determined amount of compensation each pay period

  6. Duties Test ~ Computer jobs are reviewed under the Professional Exemption To be considered exempt, the primary duty of the job must consist of: • Application of systems analysis techniques and procedures • Design, development, documentation, analysis, creation, testing or modification of computer systems or programs • Design, documentation, testing, creation or modification of computer programs related to machine operating systems; or • A combination of the above duties

  7. Job Classification vs Job Description • IT I classification is a general job description that encompasses typical duties and minimum qualifications. • Each employee has a job description specific to his/her own job duties. This job description is used to determine the appropriate classification.

  8. Jobs under the IT I classification • New legal standards require USNH to re-examine some jobs that are currently exempt and make a determination as to their exempt or non-exempt status, based on the 3 tests • Review is based on actual job duties, not job performance, and it certainly is not a reflection of the value or significance of the position to USNH • Review requires an accurate job description

  9. Transition to OS • Earned time (which includes sick pool) • Longevity • OS HR polices, such as additional pay (OT, shift, etc.) • No change in medical, dental, life, LTD, retirement benefits • Paid an hourly rate, which will be derived from the PAT annual salary rate • Still eligible for FY ’05 salary increases

  10. Goals • Obtain accurate job descriptions for those in the IT I classification • Provide a smooth transition for an employee in a job that moves from exempt to non-exempt • Ensure USNH’s legal compliance

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