Fair Labor Standards Act (FLSA)

Fair Labor Standards Act (FLSA) Presented by: Graham Gillis – Human Resources Warren Readnour – General Counsel Bridget Fortenberry – Human Resources

Fair Labor standards act (FLSA) • Enacted in 1938, revised in 2016. • Requires employers to compensate non-exempt (eligible) employees one-and-one-half-times their regular rate of pay, for hours actually worked over 40 in an work week. • If you qualify as an exempt employee that means that you are exempt from FLSA rules; therefore, you are not entitled to overtime.

Exemption test • In order to satisfy the White Collar Exemption you must meet all three tests (Salary Basis, Salary Level, and Duties Test), not just the salary level test. • The salary level and salary basis test do not apply to doctors, lawyers, and teachers.

What changed • University is reviewing all jobs to determine whether the job is exempt or non-exempt before December 1, 2016. • Some classifications will move from exempt to non-exempt.

Tracking your time • You must track and report your hours worked. This includes: • Work time • Training Time • Travel Time • We will cover each of these separately.

Work time calculations • Calculations are based on time actually worked during the workweek. • Example: Susie worked 36 hours and took vacation for 8 hours. Susie is not entitled to overtime because she did not actually work over 40 hours. • You cannot “volunteer” to not be paid for time worked. • Eating lunch at your desk is frowned upon. If you answer the phone or check an email during this time it is considered to have been work time. Walk away from your desk on your lunch break….this is your time! • Turn your email off that automatically goes to your phone! You have to be compensated for any time that is spent answering emails. Unless your Supervisor has approved answering emails after normal working hours ahead of time or it is a true university need, turn this feature of your phone off. • If you have to make phone calls while off the clock then track your time….it must be included in time worked. This needs to be discussed with your Supervisor ahead of time.

Training time calculations • Most training time is work time. • All training time is work time if it occurs during an employee’s regular shift or if it is required by the employer.

Travel Time calculations • Commuting to and from work is not included in working hours. • Time spent traveling from place-to-place during the course of a day is included. • Out-of-Town Travel • Single day trip - a trip to a local school that is 45 miles from campus - all of the time spent traveling is included in the days work. • Overnight Trip - Only those hours spent traveling during the normal working hours are included in the hours worked, unless work is being performed during the time of travelor if that person is the driver…passenger is not covered. (Supervising students is included as work, but it may be deemed that only one person is the “Supervisor” if there are more than one that are capable.)

Compensatory Time • The University may provide 1.5 hours of compensatory time for each hour worked over 40 hours in lieu of overtime pay. • Employer may require the use of compensatory time.

Flex time • Flex-time - small variations within an employee’s 40-hour schedule, which still result in 40 hours being worked during the week. Flex-time is straight-time adjustments, (meaning one (1) hour = one (1) hour- This is different than compensatory time.) • Must be approved by the Vice President and is at the discretion of the Supervisor. • Must be approved in advance. • Each one-time variation requires its own approval. • Not all positions are eligible to flex. • Ex. An employee works from 8:00am - 6:30pm and receives approval to come in at 10am the next morning. ***Flex time is not recorded in Banner.

Flex Schedule • Flex Schedule - a modified work schedule, which lasts a predetermined amount of time. The days and hours worked still amount to a standard 40-hour workweek. • Must be approved by the Vice President and is at the discretion of the Supervisor. • Must be approved in advance. • Not all positions are eligible. • Ex. In order to keep a facility open each night until 10:30pm, an employee has the weekly schedule of 2:00pm - 10:30pm.

recommendations • Talk to your Supervisor about comp time and flex time in advance. • Make sure to record your hours in your time tracking device (probably excel timesheet for now) daily and review those hours weekly. • Turn any comp time earned in to your timekeeper to be loaded into Banner. It is loaded every pay period. • When comp time is taken be sure to record it on your MyUCA leave the same way that you record vacation and sick. Comp time is to be used before vacation.

timeline • July 6, 2015 DOL issued proposed rules for the FLSA update. • March 1, 2016 Compensatory Time Policy Update and Banner entry. • May 18, 2016 Final rule for the FLSA adopted. • August 25, 2016 Athletics Training. • September 13, 2016 campus update. • September 14, 2016 Student Services training. • September 30, 2016 Finance and Administration training • October 19, 2016 University Relations Training • October 26, 2016 Presidents Office & Advancement Training • November 16, 2016 Academic Affairs Training • December 1, 2016 new rules apply under FLSA.

Fair Labor Standards Act (FLSA)