FLSA – Overtime Changes Furman university FLSA – Overtime Changes

FLSA Overview The Fair Labor Standards Act (FLSA) was first enacted in 1938. The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

FLSA Overview The Wage and Hour division of the Department of Labor administers and enforces the FLSA. The FLSA established the 40 hour work week, and mandates that hours worked by covered employees over 40 in a standard work week be paid at 1.5x an employee’s typical hourly rate. Employees covered by Overtime regulations are non- exempt. Employees who do not receive overtime are exempt.

FLSA Overview Exempt or nonexempt status are based on duties, not: Title Salary Education Experience

Exemptions In order to be considered exempt, an employee must meet all of the tests for a particular exemption category. Currently, an employee must earn at least $455.00 per week ($23,600 annually) in order to be considered exempt (in addition to the other tests).

Exemptions Executive Duties Test: Management is primary duty. Supervises two or more full time employees Has hiring, firing or promotion authority or hiring, firing or promotion recommendations given particular weight.

Exemptions Administrative Duties Test: Primary duty is performance of office or non-manual work directly related to the management of the general business operations of the employer or the employer’s customers Primary duty includes the exercise of discretion and independent judgement with respect to matters of significance.

Exemptions Professional (Learned) Duties Test: Performs work requiring advanced knowledge Advanced knowledge is in a field of science or learning Advanced knowledge acquired by a prolonged course of specialized instruction

Exemptions Professional (Computer) Duties Test: Earns at least $27.63 per hour Performs system analysis techniques and procedures to determine hardware, software or system functional specifications. Designs, develops, documents, analyzes, creates, tests or modifies computer systems or programs, either based on and related to user or system design specifications, or relates to machine operating systems.

New weekly minimum $913/week (this annualizes to $47,476/year) The new weekly minimum salary to qualify as Exempt is: $913/week (this annualizes to $47,476/year) This amount was chosen as it is approximately the 40th percentile of weekly earnings for full time salary earners and is considered a demarcation line for those who would likely meet the other duties required for an employee to be exempt $20,000 $22,000 $24,000 $26,000 28,000 $30,000 $32,000 $34,000 $36,000

What does this mean?

New weekly minimum Staff making less than the minimum weekly rate of $913.00/week will be non exempt (hourly) effective December 1, 2016. The hourly rate will be determined by dividing annual salary by 1950 or 2080 hours, depending on schedule. Non-exempt staff will be required to record all hours worked. Non-exempt staff will be paid 1.5x your hourly rate for any time worked in excess of 40 hours/week.

payroll Effective December 1, 2016, affected staff will be paid on a bi-weekly schedule. Benefits, including vacation, holidays, etc. will not change, though the employee cost of benefits will now be withheld bi-weekly rather than monthly.

payroll Begin Tracking Hours on Monday, November 28 (Sunday Nov. 27).

Minimizing overtime Work proactively with your supervisor Comp Time Minimize travel

To consider: Direct Deposit Retirement

What do I do?

Supervisor roles Insure employees are recording all time worked. This includes working lunches, working or checking emails from home and travel time. Monitor time worked Don’t wait until Friday!

Supervisor roles Comp Time Employees can be given compensatory time off during the same standard workweek to offset potential overtime. Furman’s standard work week is Sunday at 12:01am through Saturday night at midnight. Comp time cannot be granted in future weeks.

Supervisor roles Travel Time Non exempt staff must be compensated for any time working—nights, weekends and when travelling. Time spent in transit may be compensable. During work hours (any day of the week) When driving

Questions and answers

Questions and answers I typically work more than 40 hours per week. Does this mean I get overtime pay?

Questions and answers I typically work more than 40 hours per week. Does this mean I get overtime pay? Yes, effective December 1, 2016. Please work with your supervisor to minimize this. You may be given comp time in the same work week to minimize overtime hours.

Questions and answers Comp time sounds great! If I work overtime this week, can I take next Friday off?

Questions and answers Comp time sounds great! If I work overtime this week, can I take next Friday off? No. Any overtime hours worked in a standard work week must be paid at the overtime rate (time and one-half). Comp time may be given in the same standard work week.

Questions and answers I have a college degree and work in a professional position. Does this not make me exempt?

Questions and answers I have a college degree and work in a professional position. Does this not make me exempt? These things may help your position meet some of the tests for exemption. However, all tests, including the minimum weekly salary must be met in order for a position to be classified as exempt.

Questions and answers I understand this, but can I voluntarily stay exempt?

Questions and answers I understand this, but can I voluntarily stay exempt? No. We are required to follow the regulations as determined by the Department of Labor.

Questions and answers There are others doing the same, or very similar jobs, who are still exempt. Why is this?

Questions and answers There are others doing the same, or very similar jobs, who are still exempt. Why is this? A job may meet all of the tests to be exempt except the salary requirement. There may be others working in similar roles who meet all of the requirements (including the salary requirement).

Questions and answers My friend is a teacher. His job is staying exempt and I know he makes less than $47,000. Why is this?

Questions and answers My friend is a teacher. His job is staying exempt and I know he makes less than $47,000. Why is this? Teachers (and some other jobs) are specifically classified as exempt by the DOL.

Questions and answers We are working on a big project. Is it OK if I voluntarily work some hours off the clock?

Questions and answers We are working on a big project. Is it OK if I voluntarily work some hours off the clock? NO. Non-exempt staff must record all time worked and will be paid for all time worked. Under no circumstances should you work without recording the time. Please contact Human Resources if you are ever asked to do so.

Questions and answers What if I work less than my regular hours in a week?

Questions and answers What if I work less than my regular hours in a week? Non-exempt staff are paid hourly for hours worked. Therefore, if you were to work less than your regularly scheduled hours, you will only be paid for hours actually worked.

Questions and answers I travel for my job. How does my pay work when I’m traveling?

Questions and answers I travel for my job. How does my pay work when I’m traveling? Any time spent working is compensable. Whether or not time in transit is compensable depends on several factors. Human Resources has additional information available on this.

Questions and answers Your questions?

Timekeeping

Timekeeping – paper time card for pay period ending 12/10/16   The pay period including December 1, 2016 covers November 27 through December 10.  Time keeping for pay period that includes December 1, 2016 will be on a paper timecard.  Hours recorded on November 27 – November 30 are information only – to determine if overtime pay is due.

Timekeeping – paper time card for pay period ending 12/10/16 Example 1

Timekeeping – paper time card for pay period ending 12/10/16 Example 2

Timekeeping – paper time card for pay period ending 12/10/16 Example 3

timekeeping Be timely with your time!!!   Don’t wait until the deadline to record your time. You never know what the morning might bring . . .

Online Online timecard entry begins with pay period beginning December 11, 2016. Online timecards are located on MyFurman Complete each day including in/out times – system requires AM or PM for each entry

Online First online timecard must be submitted early due to December holiday schedule. Timecards are due by 10:30 a.m. on Wednesday, December 14, 2016.  Due to early submission of timecards, you will need to estimate your work hours for pay period ending December 24.  Timecards for pay period beginning December 11, 2016 and ending December 24, 2016 are due by 10:30 a.m. on Wednesday, December 14.  If work hours differ from the estimated hours, complete Online Time Entry Correction Form located on MyFurman – Employee Forms – Financial Services – Online Time Entry Correction Form. Scan or fax paper correction form to Sandra Phillips. Any adjustments to estimated hours will be accounted for by the Payroll Department in your first check dated in January 2017.

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Time card approval The supervisor’s most important task.  

Time card approval Monday after the end of a pay period: Receive email notification that employee’s time entry is ready for approval. Select “Timecard Approval” under Supervisors’ Tab. Review time for the pay period and approve or reject

Time deadlines Employee: Time must be in by 10:30 am. Supervisor: Approval by 12:30 pm.

Tom Smith Detailed instructions for time card entry and supervisor approval can be found on the Financial Services page located on My Furman, under “Employee Forms.”

Time deadlines Employee: Time must be in by 10:30 am. Noteworthy Times for the Monday after a Pay Period Ends (hint – this happens every two weeks) Employee: Time must be in by 10:30 am. Supervisor: Approval by 12:30 pm.

No matter how you count your money… You need to turn in your time to have it!