Presented by: April Underwood, Compensation Consultant Scott Shimoda, Compensation Consultant 2013 Fair Labor Standards Act (FLSA)

 Overview of federal law  Exemptions  Requirements for Non-exempt Recordkeeping Compensable Time Overtime Multiple IU Meal & Rest Periods Travel Training, Volunteers and Internships

INTRODUCTION Fair Labor Standards Act (FLSA) Legal Compliance

Fair Labor Standards Act (FLSA)  UHRS  University Compensation Services  FLSA impacts IU policies & employees  FLSA & supervisors  Past FLSA violations at IU Willful violations May 2000 Back wages Future violations

OVERVIEW OF FEDERAL LAW & EXEMPTIONS Fair Labor Standards Act (FLSA) Legal Compliance

Fair Labor Standards Act (1938) Enacted to protect workers  Establishes minimum wage - $7.25 on July 24, 2009  Overtime pay  Record keeping  Required Posters  Child labor requirements

Fair Labor Standards Act (FLSA) U.S. Department of Labor (DOL), Wage & Hour Office  Administers act and investigates complaints Burden of proof is on employer  – regulations, file complaints, etc.

FLSA Exemption Tests (from minimum wage and overtime)  Salary Requirements  Duties Tests  Both salary and duties test must be satisfied to classify positions as Exempt (PAE)  Primary Duty

Exempt vs. Non-exempt Positions Exempt Positions Salary based compensation Does not track hours worked Does not earn overtime Limitations on deductions from daily/weekly pay Non-exempt Positions Hourly based compensation Must track all hours worked Eligible for overtime

REQUIREMENTS FOR NON-EXEMPT Fair Labor Standards Act (FLSA) Legal Compliance

Non-exempt IU Employees  Professional Staff - PAO Primary duties do not satisfy FLSA duties test  Professional Staff – PAU FLSA salary requirement not met  Support and Clerical Staff  Service Staff  General Supervisors - GS  Hourly & Student Hourly Employees

Recordkeeping Responsibilities  Non-exempt Employees Complete timesheets daily/weekly Record hours worked, compensatory time & time-off  Managers Approve overtime in advance Verify hours worked and time-off Approve timesheet bi-weekly  Department Retain records

What is Compensable Time?  Start & End of Principal Activity each day  Suffer or Permit to Work  Time spent preparing and finishing up  Waiting time

Overtime Pay  Paid overtime for hours worked over 40 in the work week. Employees may be subject to disciplinary action if supervisor does not approve overtime work in advance  Calculating Overtime

Compensatory Time  Definition of Comp time  Supervisor must communicate to employee how overtime will be compensated  Maximum Accumulation per IU policy

Employees with Multiple Jobs  IU is one employer  Paid for all hours  Overtime pay for total hours worked over 40  Valid Multiple Job Combination Chart

Meal and Rest Periods  Meal periods  Rest periods  IU Policy

Travel Time  Home to Work (Normal Commute)  One Day Assignment  Overnight Travel

Training, Volunteer & Unpaid Internships  Training Time  Volunteer Time  Unpaid Internships

EXAMPLES Fair Labor Standards Act (FLSA) Legal Compliance

CONCLUSION/QUESTIONS Fair Labor Standards Act (FLSA) Legal Compliance