Terry Meggitt, CPP Instructor Exempt vs NonExempt Terry Meggitt, CPP Instructor FLSA and Ovetime Calculations

Exempt vs Non-Exempt 1. Federal Wage-Hour Law (Fair Labor Standards Act) 2. State Wage-Hour Law 3. Exempt vs Nonexempt Employees. 4. White Collar Exemption 5. Deductions From Pay FLSA and Ovetime Calculations

Federal Wage-Hour Law (FLSA) Mandates equal pay for equal work. Places restrictions of what type of job duties children can do and the hours they can work. Sets minimum wage and minimum amount to be paid for overtime when an employee works more then 40 hours; Requires recordkeeping by employers. Wages must be paid by your paydate. FLSA and Ovetime Calculations

State Wage-Hour Law (FLSA) Lunch breaks and coffee breaks. Regulates how often employees must be paid. Regulates when terminated employees must be paid. Restrict the hours children over 16 may work. FLSA and Ovetime Calculations

States Deceased Employees wages Direct Deposit or Paycards Pay Frequency Requirements Pay Statements Provided to Employees Unclaimed Paychecks FLSA and Ovetime Calculations

Exempt vs NonExempt Exempt Employee that are exempt are exempt from minimum wage and overtime payments. White Collar Exemption Administrative employees Executive employees Professional employees Computer-related professional employees Outside salespersons Typing of personal letters; use of company copier; picnics for all EE’s; sporting events; theater tickets; company phone; coffee; doughnuts FLSA and Ovetime Calculations

Exempt vs NonExempt NonExempt Must be paid at least the minimum wage for all hours worked and must be paid an overtime premium for all hours worked over 40 in a workweek. Hourly: Paid by the hour and receives additional premium pay for hours worked over 40 in a workweek. Salaried: Receives a salary for hours worked up to 40 per workweek. Overtime is still due when working more than 40 hours in a workweek. FLSA and Ovetime Calculations

White Collar Exemption Administrative Employees: A. $455 per week, annual amount $23,660 B. Primary duties is directly related to management of the business operations. C. Exercise of discretion and independent judgment with respect to matters of significance. FLSA and Ovetime Calculations

White Collar Exemption Administrative Employees Possible Titles: accounting insurance advertising labor relations auditing legal & regulatory compliance budgeting marketing computer admin procurement employee benefits public relations finance research government Relations safety and health human resources tax FLSA and Ovetime Calculations

White Collar Exemption Executive Employees: A. $455 per week, annual amount $23,660 B. Primary duties is management of the business operations. C. Customarily directs the work of at least two employees. D. Suggestions and recommendations on hiring, firing, advancement etc… FLSA and Ovetime Calculations

White Collar Exemption Executive Employees: Management activities such as: Directing the work of employees. Disciplining employees. Employee’s complaints and grievances. Interviewing, selecting and training employees. Planning employees work. Planning and controlling the budget. Safety and security of the employees or the property. FLSA and Ovetime Calculations

White Collar Exemption Professional Employees: A. $455 per week, annual amount $23,660 B. Work requiring advance knowledge and also exercise of discretion and independent judgment in their field. C. Work requiring invention, imagination, originality or talent in a recognized field. FLSA and Ovetime Calculations

White Collar Exemption Professional Employees Possible Titles: Learned professionals: accountants athletic trainers chefs dental hygienists nurses paralegals physician assistants registered or certified medical technologists FLSA and Ovetime Calculations

White Collar Exemption Professional Employees Possible Titles: Creative professionals: actors lawyers cartoonist musicians chefs novelists composers physicians conductors screenplay writers essayists short story writers journalists teachers FLSA and Ovetime Calculations

White Collar Exemption Computer Employees: A. $455 per week, annual amount $23,660 B. Primary duties application of systems analysis techniques and procedures including consulting. C. Design, development, documentation, analysis, creation, testing or modification of systems or machine operating systems. Note: if an employee has an hourly rate of $27.63 they too could be exempt just need to check their duties. FLSA and Ovetime Calculations

White Collar Exemption Outside Sales Employees: a. No salary test required. b. Primary duty must be obtaining order or contracts; making sales of tangible or intangible items. c. Must work away from the employer’s office. Highly Compensated Employees: $100,000; catch-up payment must be made within one month after the last payment of the year. FLSA and Ovetime Calculations

White Collar Exemption Blue collar workers & first responders can not be exempt: Possible job titles: ambulance personnel highway patrol officers correctional officers inspectors deputy sheriffs investigators detectives paramedics EMT’s park rangers firefighters police officers hazardous material workers probation officers FLSA and Ovetime Calculations

White Collar Exemption Deductions from exempt’s weekly salary: Absences for personal reasons (not including sickness or disability), Full Days. Absences for sickness or disability if employee is receiving pay from employer’s sick or disability plan. Jury duty, witnesses or military leaved can not make deductions unless no work was done in that week. FMLA leave can go as low as 15 minutes. FLSA and Ovetime Calculations

Questions FLSA and Ovetime Calculations

terry@payrolluniversity.net www.apanorthstar.org Thank You terry@payrolluniversity.net www.apanorthstar.org www.dol.gov/esa/regs/compliance/whd/fairpay DOL Phone 866-4-US-WAGE FLSA and Ovetime Calculations