FLSA Revisited: Avoiding Overtime Issues Samuel L. Jackson Lewis, King, Krieg & Waldrop Nashville – (615)

Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

FLSA Overtime Basics Overtime Calculation: An actual workweek is a recurring period of 168 hours. An average of 2 or more weeks is not permitted. An overtime hour must be compensated at a rate not less than 1 ½ times that of a standard hour. In 2005, the U.S. Department of Labor reported that 48% of the companies it investigated showed overtime violations.

Non-Exempt Employees Exempt Employees FLSA Overtime Basics Employees exempt from the FLSA can be paid via salary and require no overtime pay. Employees non- exempt from the FLSA must be compensated for any time over the standard 40- hour week. Your Employees: 2 Categories

FLSA Exempt Employees Important FLSA Exempt Categories: Executive : Manages district or recognized division; regularly directs 2 or more employees. Administrative : Performs non-manual school-related work; uses independent judgment and discretion. Learned Professional: Performs work requiring advanced knowledge and intellect; fields of science or learning. Computer: Works as systems analyst, computer programmer, software engineer or other skilled position.

FLSA Non-Exempt Employees If you are unsure whether an employee is FLSA exempt… Ask your attorney. OR Treat that employee as non- exempt under the FLSA. Non-Exempt Employees: Maintenance Personnel; Food Preparation; Secretarial Staff; Bus Drivers; Etc. Non-Exempt = Default

FLSA Consequences Remember what can happen… Employers get hit for back pay, government fines, attorney’s fees, etc.

5 FLSA Overtime Tips 1.Properly and thoughtfully classify all your employees. Exempt or Non-Exempt? That is the question… 2.When in doubt, classify an employee as non-exempt. Paying now might save you later. 3.Place all your exempt employees on salary. Remember - Salaries Save Money 4.Always treat your non-exempt employees as non-exempt. If your secretary helps with an office move, those hours count. 5.Record each and every hour your non-exempt employees work. Don’t “ask” them to volunteer without punching the clock.

QUESTIONS? Blog: tneducationlaw.com This presentation is for informational purposes and should not be considered legal advice. This presentation does not establish an attorney-client relationship.