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

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. Questions
FLSA and Ovetime Calculations

20. terry@payrolluniversity.net www.apanorthstar.org
Thank You
DOL Phone US-WAGE
FLSA and Ovetime Calculations