OVERTIME PAY POLICY CHANGES

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OVERTIME PAY POLICY OVERTIME PAY POLICY CHANGESCHANGES

Presenter: Amanda Louks, UMHHC Payroll Supervisor

Policy Expert: Kevin Newman, HSHR Consultant

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Agenda:

•Educate TK’s, Supervisors, and others about policy changes•Provide Job Aids (TRC lists, this presentation)•Information about 8/80 overtime rule, who is eligible, who is not, how to apply, & compliance•Review scenario’s, ask/answer questions•Review changes to overtime pay for Service/Maintenance Employees covered under the AFSCME agreement, scenario’s, questions.

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http://www.finops.umich.edu/payroll

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NON-BARGAINED/NON-EXEMPT 40 hour employee who does not work the holiday, but picks up

extra shift on Saturday

Days S M T W TH F SAT Schedule 0 8 8 8 8 8 0 Actual 0 8 0 8 8 8 8

Record 0 8REG 8HOL 8REG 8REG 8REG 8OTR 32REG 8HOL

8OTR

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NON-BARGAINED/NON-EXEMPT 40 hour employee who does work the holiday and picks up an

extra shift Saturday (Note: the OTP for working the holiday is not counted in the calculation of time worked for extra hours on Saturday to avoid pyramiding)


Record 0 8REG 8HOL 8REG 8REG 8REG 8OTR 8OTP 32REG 8OTR 8HOL 8OTP

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NON-BARGAINED/NON-EXEMPT 40 hour employee who works the holiday and then has 2 extra

hours on Friday (Note: the OTP for working the holiday is not counted in the calculation of time worked for extra hours on Friday to avoid pyramiding)


Record 0 8REG 8HOL 8REG 8REG 8REG 8OTP 2OTR 32REG 2OTR 8HOL 8OTP

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NON-BARGAINED/NON-EXEMPT 40 hour employee who works M-F

Days S M T W TH F SAT

Schedule 0 8 8 8 8 8 0 Actual 7 8 5.5 8 8 6.25 8

2.5pts 1.75pts

Record 7reg 8reg 5.5reg 8reg 7.25reg 3.5otr 8otp 2.5pts .75otr 2.75otp 1.75pts35.75 reg4.25 pts4.25 otr10.75 otp

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NON-BARGAINED/NON-EXEMPT

Thought process… Regarding Exception Pay (employees paid based on

standard hours, all except temps) Report OTR in order to reach 40 hours

worked before reporting OTP when there are non-worked hours reported as part of the appointment and if employee is part-time

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Points to consider……

In a true flex environment the employee wouldn’t take PTO if they are working at least up to their appointment for the week

Report PTO only if they don’t make their appointment for the week or if employee has an attendance issue that needs to be tracked

Dept guidelines written and followed consistently

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Schedule 0 8 8 8 8 8 0 Actual 7 8 5.5 8 8 6.25 8

Record 7reg 8reg 5.5reg 8reg 8reg 3.5reg 8otp

2.75otp 40 reg10.75 otp

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Example:

I am 40 hours per week. I had 24 hrs PTO time scheduled and I worked 20 hrs. I take 44 (total hours I need to be paid) less 40 hours paid by exception, so I need to be paid 4 extra hours.

Are they OTP or OTR? Was my total worked hours greater than 40?

No, so it's OTR for 4 hours.

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Days S M T W TH F SAT Schedule 0 8 8 8 8 8 0 Actual 4 8 8 off off off 0

Record 4otr 8reg 8reg 8pts 8pts 8pts 0

16reg 24pts

4otr

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Or in a true flex environment having no attendance issue to track…..

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Schedule 0 8 8 8 8 8 0 Actual 4 8 8 off off off 0

Record 4reg 8reg 8reg 8pts 8pts 4pts 0

20reg 20pts

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40 hour employee who works M-F


Schedule 0 8 8 8 8 8 0 Actual 0 8 16 8 8 8 0

7a-3p M11p-T3p 7a-3p 7a-3p 7a-3p

Record 0 8reg 16reg 8reg 8reg 8otp

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OLP (Overlap), goes away because paying OTP (overtime 1 ½ rate), when working over 8 in a day went away with the Overtime Policy change

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40 hour employee who works M-F


Schedule 0 8 8 8 8 8 0 Actual 0 8 8 8 8 8 0

7a-3p M11p-T7a 7a-3p 7a-3p 7a-3p

Record 0 8reg 8reg 8reg 8reg 8reg

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Record Questions?

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Guidelines for 8 and 80 Overtime Rule

Dept of Labor Definition: Under the "8 and 80" system, the nursing

care facility may pay employees -- with whom they have a prior agreement -- overtime for any hours worked after more than 8 hours in a day and more than 80 hours in a 14-day period

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Expanded Definition: The Act entitles hospitals, nursing homes,

and other healthcare providers that care for inpatients to enter into agreements with their employees whereby the employees will be paid overtime compensation at a rate of 1 ½ times their regular rate of pay for each hour worked in excess of 8 hours in a work day and 80 hours in a 14 day period

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Who is eligible: Employees who work in an inpatient

hospital setting that operates 24/7 and whose job requires them to work a special schedule because of the 24/7 nature of operation (e.g. security or patient care personnel).

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Who is not eligible: Employees at outpatient or ambulatory

care facilities (i.e. off-sites, clinics)

If there is a question of whether or not your employees are eligible, call your HR consultant for advisement

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Purpose of 8 and 80 exception to the over 40 rule: It benefits healthcare facilities by allowing

them to avoid unnecessary overtime pay caused by requirements of a 24/7 operation

Offers eligible employers flexibility to cover the staffing needs in a 24/7 healthcare environment

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Other provisions for compliance: 8/80 does not have to be permanent,

however, the regulations strongly discourage changes from a 7 day workweek to the 14 day period and back again.

Must be implemented at least for a substantial period of time (No Flip Flopping of the rule whenever it’s convenient)

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What is a substantial period of time? HSHR Compensation recommendation

Give 30 day notice before switching from and 8/80 overtime rule to the over 40 in a workweek overtime rule

Have a written agreement with employee in place before using the 8/80 overtime rule

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If you are currently using the 8/80 rule to pay overtime:

Have a conversation with your HR consultant in order to make sure your department is in compliance with it’s practices

Get written agreements in place if currently using the rule to ensure understanding and compliance with regulations

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Compliance for employees with multiple jobs/appointments/record numbers:

All jobs must meet eligibility requirements for using the 8/80 overtime rule

All jobs must use the same overtime rule Communication between dept’s Written agreement in place for all

appointments

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8 and 80 overtime rule examples:


Worked 8 8 0 8 8 9 8

Record 8reg 8reg 0 8reg 8reg 8reg 8reg 1otp


Worked 0 8 0 8 8 8 8

Record 0 8reg 0 8reg 8reg 8reg 8otp

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8 and 80 overtime rule examples:Any Examples you have that you want to go over?


Worked

Record


Worked

Record

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Worked

Record


Worked

Record

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Record Questions?

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SERVICE/MAINTENANCE COVERED UNDER AFSCME

AGREEMENTOvertime time and a half, (OTP) is paid when:

Working over 8 hours in a day unless the employee has an alternate schedule (i.e. working four 10’s M-Th), or has an agreement in place to flex hours within the week per written request and approval by supervisor (a request must be submitted for each schedule change that needs to be waived)

Worked hours plus any Holiday or Jury Duty hours exceeds 40 hours in the workweek

Additional work schedule is mandated, Mandatory Overtime is paid at one and a half times the employees hourly rate regardless of total work hours in the week

**Exception permitted under FLSA for Survival Flight Dispatchers-3 week rotation of 36, 36, 48 with no more than 1020 hours in a 6 month period

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AGREEMENT These are the TRC’s that are used to Calculate OT

for Service/Maintenance employees covered under the AFSCME agreement

ECW Emergency Closing-Wkd HOL Holiday HPB Hospital Business HSB Holiday Substitution JRD Jury Duty OTR Overtime 1.0 REG Regular SEW Season Day Worked UBS Union Business

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AGREEMENT OTM – Overtime 1.5 Mandatory: Per Article 10, this new time

reporting/earnings code is to be used to report mandatory overtime. An employee is paid at the “time and one-half rate” for all Mandatory overtime hours worked, even if they work less than 40 hours during the workweek. These hours can be reported on the employee’s Timesheet page by the unit Timekeeper.

OBP – One Time Bank Payout: Per Article 24, this new earnings code will be used to pay AFSCME employees up to a maximum of 40 One-Time Bank hours upon retirement. For Plant employees, these payments will be initiated by the Plant Payroll Office via an off-cycle request. For Hospital AFSCME employees, these off-cycle payments will be initiated by the Hospital Payroll Office. For all non-Plant Campus AFSCME employees, these payments will be initiated by the Timekeeping Area of the University Payroll Office, upon retirement of the employee.

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AGREEMENT

40 hour employee who does not work the holiday, but picks up extra shift on Saturday


Record 0 8REG 8HOL 8REG 8REG 8REG 8OTP 32REG 8HOL

8OTP

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AGREEMENT

40 hour employee who does work the holiday and picks up an extra shift Saturday (Note: the OTP for working the holiday is not counted in the calculation of time worked for extra hours on Saturday to avoid pyramiding)


Record 0 8REG 8HOL 8REG 8REG 8REG 8OTP 8OTP 32REG 8HOL 16OTP

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AGREEMENT

40 hour employee who works the holiday and then has 2 extra hours on Friday (Note: the OTP for working the holiday is not counted in the calculation of time worked for extra hours on Friday to avoid pyramiding)


Record 0 8REG 8HOL 8REG 8REG 8REG 8OTP 2OTP 32REG 8HOL 10OTP

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AGREEMENT

Days S M T W TH F SAT Schedule 0 0 8 8 8 8 8 Actual 0 8 8JRD 8 8 10 8PTS

Record 0 8reg 8JRD 8reg 8reg 8OTR 8PTS 2OTP

*Gets OTP on Friday for working over 8 in a day *Gets OTR on Friday due to PTS day on Saturday*Actual worked hours not including OTP, plus Jury Duty do not exceed 40 in the

workweek

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AGREEMENT

Record Questions?

Documents

OVERTIME PAY POLICY CHANGES