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Welcome. Fair Labor Standards Act “FLSA”. in school settings. Van Keating, Esq. Director of Management Services Renee Fambro, Esq. Deputy Director of Labor Relations. OSBA Presenters. A legal overview of the FLSA. Statutes.
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Fair Labor Standards Act“FLSA” in school settings
Van Keating, Esq. Director of Management Services Renee Fambro, Esq. Deputy Director of Labor Relations OSBA Presenters
Statutes • Fair Labor Standards Act of 1938, 29 USC §201 et seq. • Ohio Revised Code RC § 3319.086 defines standard work week as 40 hours unless authorized by Board as fewer hours. • Ohio Revised Code RC § 4111.03 requires time and a half pay or compensatory time after regular work week
Compensation requirements • Time and a half must be paid or compensatory time must be given for time worked over 40 hours per week. • The 40 hours does not include vacation or sick hours, but only actual hours worked (RC § 3319.086) • The FLSA also sets minimum wage - currently $5.15/hour
FLSA forbids employees to volunteer • Employees must be paid for all hours worked. • Therefore, employees cannot volunteer to work for the district.
Occasional/Sporadic Employment • Occasional or sporadic employment in a capacity different from regular duties will not entitle the employee to overtime even if combined time exceeds 40 hours • The key is that the work truly must be occasional and solely at the employee’s option • E.g. custodian substituting as a bus driver
Don’t forget …. Potential impact on: • FMLA • Benefits • COBRA
Overtime >40 hours in 7 days Rate of 1.5X of “regular rate” “Regular rate” = blended value of all the various rates Key Points of the FLSA
FLSA in Schools • Since the employees are “public employees” they are governed by the FLSA’s provisions • FLSA divides workers into 2 categories - Exempt and Nonexempt - each of these have numerous subcategories • Exempt = professional employees - teachers, administrators, executive employees • Nonexempt = bus drivers, cooks, custodians, secretaries, etc • Exempt employees are not subject to the requirements of the FLSA
Timekeeping Issues For Bus Drivers • Regular Routes • Extra Routes • Substitute Routes • Field Trips
Compensatory Time • Under the FLSA, boards of education must pay their non-teaching employees “time-and-a-half” or compensatory time • Compensatory time paid to public employees must be used within a reasonable time • Maximum accrual of 240 hours of compensatory time29 USC §207 (o)
Other Overtime Issues • Portal-to-Portal • Blended rate calculations • Other districts jobs: • Coach • Aide • Akron City Case
Which provisions create the most problems? When a claim is made against an employer, the only effective defense is very complete and accurate records of hours worked for every non-teaching employee. According to experts, almost all employers’ records are insufficient to withstand a lawsuit.
A complication is the fact that the U.S. Department of Labor issued new regulations on April 24, 2004, which will add some uncertainties as the courts attempt to interpret these new rules.
FLSA Employer fines $1,000 - $10,000 Recovery of back wages Potential cost of damages, fees and court costs Penalties
How to avoid noncompliance • Obey the law • Control number of hours worked • Keep good records (presumption in favor of employee without records) • Post all notices • Educate supervisors
Collective Bargaining and the FLSA • The 40-hour work week cannot be bargained away. • The school board can agree to a shorter “standard work week.” • There can be greater than time and a half compensation such as work on Sunday or certain holidays or emergency times.
FLSA cannot be superceded by bargaining . . . No collectively bargained or individual employment agreement can conflict with the OT/Compensatory time provisions of the FLSA
Contract Language • Pay on any basis as long as it does not fall below minimum FLSA standards • District “overtime” may be bargained to mean something different than “FLSA overtime”
Additional duties • Two-rate systems • Estimating hours worked • Salary v. hourly • Compensatory time • “Suffering or permitting” work • Volunteer service • “On-call” time
QUESTIONS? COMMENTS?