CIVILIAN PERSONNEL ADVISORY CENTER Fair Labor Standards Act (CPAC) Management Training: Fair Labor Standards Act 1

FLSA TRAINING AGENDA Overview FLSA Status - E or N Hours of Work Overtime Provisions FLSA Claims References In order for everyone to understand how we got to where we are now, it is important to spend a couple of minutes discussing the background of regionalization. A number of DMRDs starting as early as 1989 focused on Defense-wide reductions and consolidations. The National Performance Review targeted several “support” type positions for reduction including personnel, budget and acquisition positions. The 1993 Program Decision Memorandum and 1994 Program Budget Decision directed the regionalization and modernization of civilian personnel servicing and told the components to attain a 1:88 personnelist to customer ratio based on anticipated savings from regionalization and modernization efficiencies expected.

OVERVIEW Fair Labor Standards Act Title 5, CFR Section 201-219 Title 29, USC Title 5, CFR Part 551 In order for everyone to understand how we got to where we are now, it is important to spend a couple of minutes discussing the background of regionalization. A number of DMRDs starting as early as 1989 focused on Defense-wide reductions and consolidations. The National Performance Review targeted several “support” type positions for reduction including personnel, budget and acquisition positions. The 1993 Program Decision Memorandum and 1994 Program Budget Decision directed the regionalization and modernization of civilian personnel servicing and told the components to attain a 1:88 personnelist to customer ratio based on anticipated savings from regionalization and modernization efficiencies expected.

OVERVIEW Provides minimum standards for wages and overtime entitlements Specifies procedures for compensation for "hours of work" Fair Labor Standards Act Section 201-219 Title 29, USC Nonexempt - covered by the minimum wage and overtime provisions of the Act Exempt - not covered by the minimum wage and overtime provisions of the Act Title 5, CFR Part 551 You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

DETERMINING FLSA STATUS - GENERAL PRINCIPLES Presume nonexempt unless clearly meets exemption criteria Burden of proof for exemption rests with agency Exemption criteria should be narrowly construed If reasonable doubt - designate nonexempt E or N determined by the actual duties You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.) Temporary work or duties may affect FLSA exemption status

DETERMINING FLSA STATUS - GENERAL PRINCIPLES GROUPS THAT DON'T MEET ANY EXEMPTION CRITERIA Nonsupervisory GS Employees: - equipment operating and protective occupations - technicians at GS-9 or below - any grade involving highly specialized technical skills acquired through prolonged training or experience -- Air Traffic Control -- Aircraft Operation Most clerical occupations You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

DETERMINING FLSA STATUS - GENERAL PRINCIPLES GS-4 or below - nonexempt GS-5 or above - exempt only if the employee is an executive, administrative, or professional employee as defined in 5 CFR 551 General Schedule Employees Nonsupervisory employees are nonexempt Supervisory employees are exempt only if they meet the executive exemption defined in 5 CFR 551 Federal Wage System Employees You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

5 CFR 551 - EXEMPTION CRITERIA Foreign exemption - those employed in foreign countries and certain U.S. territories Executive employee Administrative employee Professional employee You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

FLSA STATUS DETERMINATION Supervisor assigns duties & classifies position ROLES CPOC reviews job and determines if "E" or "N" Employee has right to challenge FLSA status or OT pay You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

DEFINED AS: INCLUDES: 5 CFR 551 - HOURS OF WORK ”All time spent by an employee performing an activity for the benefit of an agency and under the control or direction of the agency" DEFINED AS: INCLUDES: hours when required to be on duty hours suffered or permitted to work waiting time or idle time which is under the agency's control and for the benefit of the agency You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

5 CFR 551 - HOURS OF WORK Under certain conditions, "hours of work" include: Preparatory or concluding activities (551.412) Time spent traveling (551.422) Time spent in training or attending conferences (551.423) Time spent adjusting grievances or performing representational functions (551.424) Time spent receiving medical attention (551.425) Time spent in charitable activities (551.426) Time spent on standby duty or on-call (551.431) Sleep time (551.432) You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

SUPERVISORS’ RESPONSIBILITY: 5 CFR 551 - HOURS OF WORK SUPERVISORS’ RESPONSIBILITY: Exercise appropriate controls such that the only work performed is that for which you intend to compensate the employee Keep complete, accurate records of all hours worked You may be asking yourself--what is the modern system. It is a human resources information system that will support civilian personnel operations in DoD. The system is being designed to support appropriated fund, nonappropriated fund, and local national human resources operations. The modern system allows the DoD to move from multiple systems to an information system for most all DoD civilian employees. The Modern Defense Civilian Personnel Data System replaces the legacy system and various Defense headquarters systems. DoD examined the requirements and then selected three commercial-off-the-shelf (COTS) products to use. The core COTS product selected to replace the legacy DCPDS was Oracle Human Resources which is being used as the basis for the modern DCPDS. Resumix was selected to provide staffing support of rating, ranking, and referral of applicants. Oracle Training Administrator (OTA) was selected to provide management, administration and evaluation for employee training and development. (OTA replaces TRAIN. Very little opportunity to test & utilize OTA to date--expect adjustments in this application.)

OVERTIME FOR NONEXEMPT EMPLOYEES Entitled to overtime pay at 1.5 times their regular pay Must receive overtime pay for "hours of work" which exceed their regular tour of duty May request compensatory time (in writing) in lieu of overtime Note to briefer: The intent of this slide is for an audience of managers. The modern system should prove to be a helpful tool for managers in their day-to-day work. Similar to capabilities managers/admin support have with PPIs.

OVERTIME FOR EXEMPT EMPLOYEES 5 CFR 550.101-113 authorizes OT for GS OT pay capped at 1.5 times GS-10 step 1 If basic pay is GS-10 step 10 or below, employee chooses OT vs. comp time If basic pay is above GS-10 step 10, management chooses OT vs. comp time Exempt Employees Note to briefer: The intent of this slide is for an audience of managers. The modern system should prove to be a helpful tool for managers in their day-to-day work. Similar to capabilities managers/admin support have with PPIs. 5 CFR 532.503 authorizes OT for Wage System employees @ 1.5

Employees entitled to file a claim Claims may concern FLSA Claims Employees entitled to file a claim Claims may concern status determination - file at any time overtime pay - file at any time but: 2-year statute of limitations 3 years for willful violations date claim received determines period of entitlement The Army’s training strategy is to utilize a train-the-trainer approach. We have established a “charter team” to develop job aids and customize training materials depending on the audience. The plan is that training will occur approximately 2 months prior to deployment of the modern system at a region. The Civilian Personnel Operations Center Management Agency (CPOCMA) is heading the Army’s efforts and will conduct ongoing training. Key factors in the training strategy are continuing to be explored.

FLSA Claims - Bargaining Unit Member Negotiated Grievance Procedure If claimant was a bargaining unit member at any time during the claim period Exclusive administrative remedy No further administrative review by agency or by OPM The Army’s training strategy is to utilize a train-the-trainer approach. We have established a “charter team” to develop job aids and customize training materials depending on the audience. The plan is that training will occur approximately 2 months prior to deployment of the modern system at a region. The Civilian Personnel Operations Center Management Agency (CPOCMA) is heading the Army’s efforts and will conduct ongoing training. Key factors in the training strategy are continuing to be explored.

FLSA Claims - Non-Bargaining Unit Member Employee may file with agency or with OPM (but not simultaneously) if: not a member of a bargaining unit bargaining unit member but not covered by a collective bargaining agreement bargaining unit member whose agreement excluded FLSA matters Administrative Review The Army’s training strategy is to utilize a train-the-trainer approach. We have established a “charter team” to develop job aids and customize training materials depending on the audience. The plan is that training will occur approximately 2 months prior to deployment of the modern system at a region. The Civilian Personnel Operations Center Management Agency (CPOCMA) is heading the Army’s efforts and will conduct ongoing training. Key factors in the training strategy are continuing to be explored.

FLSA Claim for Non-bargaining Unit Employees Must be in writing - be specific (suggested format posted on CPAC home page) Will be submitted to the employee’s supervisor for review and resolution Supervisor must acknowledge receipt, in writing, and provide written decision to the claimant Claims may be submitted to OPM either: after the local review and decision (if not satisfied) OR in lieu of the local review The Army’s training strategy is to utilize a train-the-trainer approach. We have established a “charter team” to develop job aids and customize training materials depending on the audience. The plan is that training will occur approximately 2 months prior to deployment of the modern system at a region. The Civilian Personnel Operations Center Management Agency (CPOCMA) is heading the Army’s efforts and will conduct ongoing training. Key factors in the training strategy are continuing to be explored.

References/Additional Information AMCOMReg 37-34, Overtime for Civilian Employees, 13 Jul 99 AMCOM Directives On-Line https://intranet2.redstone.army.mil/amcom_regs/ OPM Federal Employees and the FLSA OPM Web page http://www.opm.gov/flsa/index.htm Code of Federal Regulations 5 CFR 551 Pay Administration Under the FLSA http://www.access.gpo.gov/nara/cfr/index.html The Army’s training strategy is to utilize a train-the-trainer approach. We have established a “charter team” to develop job aids and customize training materials depending on the audience. The plan is that training will occur approximately 2 months prior to deployment of the modern system at a region. The Civilian Personnel Operations Center Management Agency (CPOCMA) is heading the Army’s efforts and will conduct ongoing training. Key factors in the training strategy are continuing to be explored. Dept of Army Civilian Personnel On-Line PERMISS - "Fair Labor Standards Act" "FLSA and Overtime" http://www.cpol.army.mil/ "permiss" AMCOM CPAC Home Page http://www.redstone.army.mil/cpo/