University of Cincinnati FLSA Training for Supervisors: Part 1 · Compensatory Time: UC HR Policy 14.03 • May be earned by non-exempt employees in lieu of overtime pay for all hours

FLSA Training for Supervisors: Part 1

August 2016

University of CincinnatiFLSA Training for Supervisors:

Part 2


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Part 1: Introduction to

the FLSA: What, Who, Why, When

Part 2: FLSA

Operational Management

(including Overtime)

Part 3: Total

Compensation

• Adhere to both FLSA regulations and UC policies regarding overtime pay and record keeping

• Define time worked• Describe comp time at UC• Describe overtime at UC• Explain compensable time pertaining to :

– Travel– Meetings and Training (both on and off site)– Meal Periods– Work from Home

• Avoid common legal pitfalls

Learning Objectives

NOTE: Information discussed in this presentation applies to employees who are not covered by a collective bargaining agreement or for whom the agreement contains no provision regarding this subject.

Review:

Minimum Wage and Overtime Pay• Employers must pay employees at least the federal

minimum wage as well as an overtime premium for hours worked in excess of 40 per work week, usually at a rate of one and one-half times the employee’s “regular rate” of pay

• State of Ohio minimum wage = $8.10 per hour

Review (continued)

Minimum Wage and Overtime Pay• Under the FLSA, all employees are considered non-

exempt (not exempt from coverage) unless:– The employee’s position meets specific exemption criteria or – The regulations specifically allow an exemption, and the

employer has opted to use this exemption.

Hours of Work

• “All time which employer requires, suffers or permits the employee to be on duty at a prescribed workplace or on employer’s premises.” – as defined by the DOL

• Non-exempt employees must be paid all hours worked

Time Worked

https://www.dol.gov/whd/regs/compliance/whdfs22.pdf

Hours of Work: Financial Policy 2.7.2

Workweek• Sunday at 12am through 11:59pm the following

SaturdayWork Schedule

• Managers identify Master Work Schedule in UCFlex

• Can be changed to support a business need

Overtime: UCHR Policy 14.03

• Overtime pay = 1.5 times regular base hourly rate for all hours in active pay status in excess of 40 hours in a single week.

• Payment of overtime cannot be waived by employee or employer

• Hours cannot be averaged over two work weeks– Week 1 of pay period = 45 hours worked– Week 2 of pay period = 35 hours worked– Employee paid:

• Week 1 = 40 hrs @ regular rate of pay, PLUS 5 hours at one and one half times the rate of regular pay

• Week 2 = 35 hours @ regular rate of pay

This policy applies to employees who are not covered by a collective bargaining agreement or for whom the agreement contains no provision regarding on-call pay for non-exempt classified and unclassified unrepresented staff.

OT Permission Needed: UCHR Policy 14.03

Employees must have permission from their supervisors to work overtime.

Overtime worked by the employee – whether it is authorized or unauthorized by the supervisor - must be counted and compensated as time worked.

Overtime worked by the employee – whether it is authorized or unauthorized by the supervisor - must be counted and compensated as time worked.

OT with more than one AppointmentUCHR Policy 14.03

• Hours in active pay status from the appointments should be combined to determine the eligibility for overtime pay.

• The overtime worked or compensatory time earned must be reflected on the payroll and timekeeping systems.

• Compensatory time taken must also be recorded in the Time Off From Work system


Compensatory Time: UC HR Policy 14.03

• May be earned by non-exempt employees in lieu of overtime pay for all hours per week in excess of 40 hours in active pay status

• Recorded at one and one-half times the number of hours in excess of 40 hours in active pay status

• Maximum Accrual: 240 hours


Comp Time Example

• Works 42 hours during the week of November 14 – 18

• Overtime is the default• If the employee chooses comp time

and the request is approved by his supervisor, he has earned 3 hours of comp time than can be used in a future pay period

Electing comp time rather than overtime must be requested in writing to the department; if not requested in writing – overtime is paid.

Compensatory Time: UC HR Policy 14.03

• Not available for use until it appears on the employee’s earning statement

• May be used at a time mutually convenient to the employee and the administrative authority/supervisor

• When an employee’s status is changed from non-exempt to exempt, or terminates, all accrued compensatory time will be paid at the employee’s current rate of pay before the change of status

• Employees may, at a later date, elect to receive overtime pay instead of their previously-designated choice of compensatory time and/or to convert all or part of their compensatory balance to pay. This option by the administrative authority is uniformly offered to all affected employees


Master Work Schedule

• Hourly Master Work Schedules– List of all available, hourly work schedules (currently over 300)– Transitioning Employee Master Work Schedule due to VP Designee

by September 9, 2016

• Hourly Work Schedule Key– Explains the way the hourly work schedule codes are created and

defined

• Hourly Work Schedules Request Template– If an employee’s schedule is not listed, this template must be

completed and e-mailed to Payroll for one to be created– However, if an employee is only working a temporary work

schedule that is not listed, please do not request a work schedule to be created. Instead, place the employee on a FLEX08 or FLEX10 schedule (requires clocking in/out for meals)

http://www.uc.edu/af/controller/payroll.html

Flexible Scheduling

• Supervisors are encouraged to use flexible work schedule arrangements when possible.

• When making determinations on flexible schedules, managers need to assure essential operations and deadlines are met. University/Department requirements remain the primary consideration.

• Remember to report time correctly.

“My employee periodically makes presentations to our third shift staff. While her normal work schedule is 8-5, on the days she is presenting she begins work about 5 AM. Is it permissible to have her leave at 2PM the days she is presenting?”

“My employee periodically makes presentations to our third shift staff. While her normal work schedule is 8-5, on the days she is presenting she begins work about 5 AM. Is it permissible to have her leave at 2PM the days she is presenting?”

YES

• Designated Meal Time is determined by the Master Schedule selected – If a work schedule is not selected by the due date, the

employee will be defaulted to FLEX08• While a ‘meal time’ is selected as part of the Master

Scheduling process, this does not mean the employee is required to have lunch at the same time every day. – Instead, the length of the meal time is what matters:

30 minutes or more

Meal Time & Hours Worked

• Meal periods are not hours worked when employee is relieved of duties for purpose of eating meal.

• Working meal periods count as hours worked– Non-exempt employees who work through meal period must be

compensated – Employees who work through lunch without supervisor approval may

be subject to disciplinary action

Meal Time & Hours Worked (continued)

Training Programs

Work time • Takes place during regular

scheduled hours of work, or• Required by the employer,

or• Nonattendance would

adversely affect employment or

• Disciplinary action will be taken against the employee for not attending.

NOT Work TimeAll 4 criteria must be met:

• Outside of working hours, and

• Voluntary, and• Not directly related to job,

and• No productive work during

attendance

Lectures, Meetings, and Training Programs

FLSA Ref. Title 29, Part 785 of the Code of Federal Regulations, Section 785.27 and 785.28

Academic Classes During Work Hours UCHR Policy 21.05

• Employees may be permitted to enroll in academic courses during their normal scheduled working hours, with the approval of the supervisor/manager/director.

• The employee’s first responsibility is to fulfill his/her job obligations; supervisors are responsible for managing employee performance.

• Non-exempt employees who enroll in a course(s) during scheduled working hours are required to clock out/in when attending such courses.

• Supervisors are encouraged to use flexible work schedules when possible. For non-exempt employees, vacation, unpaid time, and/or comp time may also be used for missed work hours.


“My employee takes classes every Wednesday and is away from her desk from 9:30 until 11. I understand she needs to clock out/in when she leaves and returns, but how do I manage her time so she can maintain the full 40 hours of work per week?”

OPTIONS: • She could extend her work day by 1.5 hours the day she

is out of the office.• She could use 1.5 hours of vacation time for each day

she attends class.• Her lunch hour could be shortened to 30 minutes every

day of the week during the term (she may need a new Master Work Rule for the term).

“My employee takes classes every Wednesday and is away from her desk from 9:30 until 11. I understand she needs to clock out/in when she leaves and returns, but how do I manage her time so she can maintain the full 40 hours of work per week?”

Working from Home

• Non-exempt employees should not work from home unless there is prior written authorization from his/her immediate supervisor.

• Work performed in the office or away from the normal work premises or job site is still considered work time

• Non-exempt employees should not perform any “off-the-clock” work. – “Off-the-clock” work means work performed but not reported.– Any non-exempt employee who fails to report or inaccurately

reports any hours worked will be subject to disciplinary action, up to and including termination.

On Call Pay: UC HR Policy 14.04

• Non-exempt full-time and part-time classified and unclassified employees are entitled to “on-call pay” when they are required to be “available” for work outside of their normal work schedule.

• Primary Department Procedure for On-Call Pay:– Inform the Compensation Department, in writing, of the need for “on-

call” pay for employees in the department. – The Compensation Department will review the request and determine

the appropriate on call rate. – Report the on-call rate on the Personnel Change Request (PCR) and

attach a copy of the Compensation Department’s approval letter. – Report on-call pay on the appropriate Timekeeping System.– Report the on-call rate via PCR, and the time keeper enters the on-call

time into the employee’s time record.


Callback Pay: UCHR Policy 14.11

• Non-exempt employees receive callback pay when they are required to return to the workplace, outside of their normal work schedule, necessitating additional travel to and from work.

• If called back in to work, an employee will receive a minimum of four (4) hours call-back pay at the regular rate or the appropriate overtime rate for actual hours worked, whichever is greater.

• Callback pay is not provided when the extra work is scheduled in advance or when an employee is asked to extend his or her regular work shifts, in other words to stay past the end of the shift or to report to work early.

• All time worked in callback status is included to determine overtime eligibility, and callback premium payment is not included when calculating overtime eligibility.


• Normal travel from home to work is not considered worktime. • Work related travel during the employee’s normal working time is paid

time• Travel outside normal working hours is not paid• Travel that keeps an employee away from home overnight is travel

away from home. Travel away from home is clearly worktime when it cuts across the employee’s workday.

• US Department of Labor will not consider as worktime that time spent in travel away from home outside of regular working hours as a passenger on an airplane, train, boat, bus, or automobile.

• Any work which an employee is REQUIRED to perform while traveling must, of course, be counted as hours worked.

Travel Time

Miscellaneous Pay Practices• Shift Differential: UCHR Policy 14.14

– For all unrepresented, non-exempt employees, any hours worked from 6PM – 11PM (2nd shift) will have a shift differential of $.35/hour.

– Any hours worked from 11PM – 6AM (3rd shift) will have a shift differential of $.45/hour.

– An employee will be paid shift differential for hours actually worked, excluding vacation, sick leave, and compensatory time off.

– To take shift differential pay away from an employee because the employee requested to work during 2nd or 3rd shift = email payroll with appropriate information

– An employee working a flex schedule for his/her own convenience is not eligible to receive differential pay


Winter Season Days

• “Winter Season Days” refers to the week between the Christmas and New Year’s Day holidays during which time the university is closed.

• During the winter season days, non-essential employees will not be required to work.

• Employees designated as essential will be required to report to work and will receive:− Their regular rate of pay for the hours worked, and− Seasonal time on an hour-for-hour basis for hours worked during the

winter season. Seasonal time may not be used until after the winter season day period has ended.

HR Policy 21.23This policy applies to employees who are not covered by a collective bargaining agreement or for whom the agreement contains no provision regarding this subject.

Miscellaneous Pay Practices (continued)

• Holiday Pay – A Non-exempt employee who is

required to work on a University holiday is paid at one and one-half times the regular base rate of pay or may elect compensatory time off at time and one-half.

UCHR Policy 21.07

Time Keeping: Financial Policy 2.7.2• An employee may not clock in until the time he or she is

authorized to work by regular schedule or authorized overtime. • An employee may not begin work until he or she has clocked in,

nor continue to work after clocking out.• Employees are required to report promptly to their supervisor any

differences between time actually spent working and the time reported as worked in the timekeeping system

• Employees, including student employees, must clock in and out themselves using the official systems

• Please see the UCFlex training site for information on the technical side of timekeeping: https://www.uc.edu/ucflex/trainingopp/

Legal Pitfalls to Avoid

Most common violation involves misclassification of status, which can lead to overtime payment errors and costly lawsuits. As a result, employers have paid millions of dollars in jury awards and settlements.

Paid $18 million to settle claims made by more than 1,000 managers and assistant managers that they were incorrectly classified

A federal jury found that Wal-Mart violated employment laws by requiring employees to punch out and continue to work without pay.

Estimated $18 million to settle back pay issues. UPS had classified workers as exempt but they were really Non-exempt.


Type your response as FACT or FICTION in the chat box and click “Send”

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FLSA FACT OR FICTION?

FLSA: Fact or Fiction

“Our policy says overtime must be pre-approved. If an employee doesn’t get approval beforehand, I don’t have to pay overtime.”

FACT FICTION


Whether overtime worked is with or without permission of the supervisor does not matter in terms of compensation, the time must be counted as time worked.

“Our policy says overtime must be pre-approved. If an employee doesn’t get approval beforehand, I don’t have to pay overtime.”

FACT FICTION

“My employee works 80 hours a pay period but it breaks down to 36 hours the first week and 44 hours the second week; so I don’t have to pay overtime.”

FACT FICTION


“My employee works 80 hours a pay period (36 hours the first week and 44 hours the second week of the pay period so I don’t have to pay overtime”.

You would have to pay the employee at 36 hours for week 1 and 40 hours plus 4 hours overtime for the 2nd week.

FACT FICTION


“If an employee goes to training outside work hours, and it is required for their job, the time they spend at the training must be considered time worked and therefore paid”.

FACT FICTION


“If an employee goes to mandatory training outside work hours, the time they spend at the training must be considered time worked and therefore paid”.

If the time spent in training is considered a requirement for the ongoing employment relationship (that is, training is not voluntary), the hours in training must be considered time worked.

FACT FICTION


“If a non-exempt employee chooses to eat lunch at her desk and ends up answering the telephone a few times, she doesn’t need to be paid for that time.”

FACT FICTION


To be considered unpaid time, an employee must be relieved of duties during that period. If you allow her to answer phones while eating, she is performing employment-related tasks and must be compensated, regardless of whether she chose to eat at her desk.

FACT FICTION

FLSA: Fact or Fiction“If a non-exempt employee chooses to eat lunch at her desk and ends up answering the telephone a few times, she doesn’t need to be paid for that time.”

“I have a non-exempt employee who regularly works overtime, but she never records her time, so I don’t have to pay her for it.”

FACT FICTION


It is the employer’s responsibility to pay overtime for all hours worked over 40 during a workweek. – If you have reason to believe an employee is working

overtime, you must pay her for that time. It’s no defense that she didn’t record her hours. The employer would have the burden of proof to show that the employee did not work the hours.

FACT FICTION

FLSA: Fact or Fiction“I have a non-exempt employee who regularly works overtime, but she never records her time, so I don’t have to pay her for it.”

“I really don’t want to pay overtime, and a colleague of mine said I can make all my non-exempt employees take comp time in lieu of overtime if they work more than 40 hours a week. I think that’s a good idea.”

FACT FICTION


Supervisors cannot force an employee to take comp time instead of overtime.

FACT FICTION

FLSA: Fact or Fiction“I really don’t want to pay overtime, and a colleague of mine said I can make all my non-exempt employees take comp time in lieu of overtime if they work more than 40 hours a week. I think that’s a good idea.”

“My employee was stuck in traffic on the way to work yesterday (Monday) and didn’t get in until 9:30am, which is when she clocked in. Her scheduled start time is 7:30am. I can allow her to flex her schedule so she can make up the time by extending her work day by 30 minutes Tuesday through Friday.”

FACT FICTION


FACT FICTION


The employee could extend her work day by 2 hours. Because she came in late on a Monday and she needs to make up two hours of time, she could extend her work day by 30 minutes Tuesday through Friday. Note that the time must be made up in the same week. She could also use two hours of vacation time, if available

“My employee was stuck in traffic on the way to work yesterday (Monday) and didn’t get in until 9:30am, which is when she clocked in. Her scheduled start time is 7:30am. I can allow her to flex her schedule so she can make up the time by extending her work day by 30 minutes Tuesday through Friday.”

“My employee had car trouble on the way to work last Friday. She made many work-related calls and talked to students while waiting for the tow truck. Since she wasn’t at work, that isn’t considered time worked and therefore we don’t have to pay for that time”

FACT FICTION


“My employee had car trouble on the way to work last Friday. She made many work-related calls and talked to students while waiting for the tow truck. Since she wasn’t at work, that isn’t considered time worked and therefore we don’t have to pay for that time.”

FACT FICTION


She will need to be paid for the time she spent working/making calls. She’ll need to let you know how much time this involved. You will then advise the timekeeper to make an adjustment to her hours for the week so she is paid appropriately

FLSA Violations Reminders• While Employees ordinarily bear the burden of proof under

FLSA, the employer can be obligated to give employees access to work records so that they can attempt to prove claims.

• If the employer has not adequately maintained records, the court may accept the employee’s claim and give the employer the burden of disproving allegations.

• Employers automatically bear the burden of proving any exemption under the FLSA.

• Anyone who willfully violates the FLSA could be subject to personal liability.

Resources

• UC FLSA Website: http://www.uc.edu/hr/compensation-department/flsa

• Recorded webinar of this presentation

• Attend Part 3 of this training series

• Contact [email protected] or 556-4270

• Department of Labor FLSA Website

– https://www.dol.gov/whd/flsa/

Documents

University of Cincinnati FLSA Training for Supervisors: Part 1 · Compensatory Time: UC HR Policy 14.03 • May be earned by non-exempt employees in lieu of overtime pay for all hours