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Fair Labor Standards Act (FLSA) Issues Don’t let it give you a run for your money!

DIVISION OF FINANCE. Fair Labor Standards Act (FLSA) Issues Don’t let it give you a run for your money!. Texas A&M University, Human Resources. February 29, 2012. We will cover. Basic FLSA provisions Exempt vs Non-exempt Breaks Overtime & Compensatory Time Travel time

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Fair Labor Standards Act (FLSA) Issues Don’t let it give you a run for your money!

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  1. DIVISION OF FINANCE Fair Labor Standards Act (FLSA)IssuesDon’t let it give you a run for your money! Texas A&M University, Human Resources February 29, 2012

  2. We will cover • Basic FLSA provisions • Exempt vs Non-exempt • Breaks • Overtime & Compensatory Time • Travel time • Other Working Time issues

  3. Minimum Wage Federal & State of Texas $7.25 per hour No exceptions have been identified at TAMU

  4. Recordkeeping • No specified format as long as necessary elements present • Time clocks not required • Rounding (nearest 15 minutes) • Keep records for a MINIMUM of three years

  5. FLSA Exempt vs Non-Exempt • Exempt employees • No overtime • No comp time (one exception) • Salary for specific job that cannot be reduced (except as provided by law) • Exempt categories used at TAMU Executive, Administrative & Professional

  6. FLSA Exemption Requirements • Salary Basis Test ($455 per week, $23,660 per year) • Plus one or more of the following: • Job duties and responsibilities • Supervision of employees • Management of a department, unit or recognized sub-division • Authority to hire/fire employees • Office or non-manual work directly related to the management or general business operations • Primary duty includes exercise of discretion and independent judgment with respect to matters of importance (eg, Finance, Budgeting, Research, HR, Legal and Regulatory Compliance) • Requires knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (eg, Law, Medicine, Accounting, Engineering, Physical Sciences)

  7. Breaks • Meal breaks are not mandatory, but if given, must meet all three conditions or it is compensable: • Minimum of 30 minutes • Relieved of all duties • Free to leave work location • Rest breaks are not mandatory, but if given, should meet the following: • 20 minutes or less • Applied consistently • Consider a written policy • Breaks are not be combined or added to other rest breaks or meal breaks - the time may become non-compensable

  8. Lactation Breaks • Nursing mothers must be allowed to take periodic breaks as necessary during a 1-year period following the birth of their child • If rest breaks are allowed by the department, lactation breaks are compensable to the extent that other employees are given breaks (if required lactation breaks exceed the number/time allowed for rest breaks, these extra breaks are not compensable, but must be allowed) • Flex schedules should be considered to accommodate non-compensable lactation breaks (eg arriving 15 minutes early, staying 15 minutes late, shortened lunch break) • A specific area need not be permanently set aside, but it must be private, screened from view and not subject to interruptions (must NOT be a toilet area) • http://rules-saps.tamu.edu/PDFs/31.99.99.M0.02.pdf

  9. Federal Overtime • All non-exempt employees are eligible for overtime (including student workers, part-time and wage employees) • Hours worked in excess of standard 40-hour workweek (Thursday through Wednesday for TAMU) • Calculated at 1 ½ times the standard hourly rate

  10. Federal Comp Time • Can be given in lieu of overtime payment, but only for public employees • Accrues at 1 ½ times the standard hourly rate • Cannot exceed 240 hours for most employees (480 hours for some seasonal workers, police, fire and EMS personnel) • Never expires • Exempt employees are not eligible for federal overtime or comp time

  11. Federal Comp Time • TAMU System Regulations state: To minimize liability for federal compensatory time, overtime compensatory time should be used within 12 months from the time it is earned, if practical; if not used it should be paid • Employers may require employees to use federal comp time reserves • Before using vacation time • Even if employee has not requested time off • Employer must allow employee to take federal comp time when requested, unless it would base serious disruption to teaching, research or other critical functions

  12. State Comp Time • Earned when combination of hours worked and paid leave exceeds 40 hours in a work week • Accrues on an hour-per-hour basis (straight time) • No maximum accrual • Must be used within 12 months from the pay period in which it is earned or it is lost (cannot carry forward) • Can only be paid on an exception basis (eg if allowing State comp time off would cause serious disruption to normal teaching, research or other critical functions)

  13. State Comp Time • May not be paid upon termination but can remain on payroll to expend comp time • Exempt employees required to work on a scheduled holiday will accrue equivalent State comp time to be taken within 12 months following the pay period in which it is accrued (this is the only situation in which an exempt employee can accrue comp time)

  14. Comp Time Summary • Federal • Hours worked exceed 40 in a work week • Never expires • 240 (or 480) hour maximum accrual • Should be paid after 12 months to minimize liability • State • In excess of 40 hours worked plus paid leave in a work week • Expires after 12 months • No accrual maximum • Paid only by exception

  15. Travel time • Travel Time (Not paid for exempt employees) • Daily commute is not compensable • Same day travel to/from a different location is compensable (less regular commuting time) • Overnight trips - travel that occurs during normal working hours, regardless of the day of the week, is compensable (non-exempt driver of a vehicle will be compensated for all hours of the journey) • Airport connections not normally compensable

  16. Other Issues • Meetings/Lectures/Training - compensable unless: • Voluntary, AND • Outside working hours, AND • Not related to regular job, AND • No productive work is accomplished • On-Call Duty requires written policy approved by HR

  17. Other Issues • Dual employment • May involve overtime depending on primary job • Outside employment • Pay deductions

  18. Summary • Minimum Wage • Recordkeeping • Exempt vs Non-exempt • Federal Overtime • Federal & State Comp Time • Meal, Rest and Other Breaks • Travel Time • Meetings, lectures and training

  19. Any Questions? John C Williams Senior Classification & Compensation Analyst john.c.williams@tamu.edu 845-1466 Michelle Steedly Manager, Compensation msteedly@tamu.edu 862-3904 Main Compensation Office #: 845-4170

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