1. Fair Labor Standards Act
The Final Rule
Department of Human Resources
November 2016

2. Today’s Agenda Terms and Definitions New DOL Regulation Overtime Rule
What You Need to Know
Recordkeeping Requirements
Questions

3. Terms and Definitions FLSA – Fair Labor Standards Act
DOL – Department of Labor
Overtime – any hours worked over 40 in a given workweek; paid at 1.5 times their regular rate
Non-exempt – entitled to overtime pay under the FLSA
Exempt – excluded from overtime pay under the FLSA
Compensable time – any time the employer permits or allows an employee to perform the activity
WKU’s Workweek – 12:01 a.m. Monday through 12 midnight on the following Sunday

4. New DOL Final Rule Goes into effect December 1, 2016
Sets the non-exempt salary threshold at $913 per week; $47,476 annually (formally $23,600)
Employees below the salary threshold classified as non-exempt
Rules for non-exempt haven’t changed, only the salary threshold has changed

5. Overtime
An employee works overtime when hours worked exceeds 40 in a given workweek; OT is paid at 1.5 x regular rate
WKU’s standard workweek is 37.5 hours; therefore any time worked between 37.5 – 40 hours in a given workweek is paid at straight time (regular rate)
There are 2 options available when an employee works hours causing overtime to accumulate

6. Option 1 1. Pay overtime when worked:
Any hours worked beyond 40 in a work week will be paid at time and one-half
Hours worked during two or more workweeks may NOT be combined or averaged to determine overtime pay due
Should be pre-approved with Supervisor
Provisions also apply when an employee works in more than one University department

7. Option 2 2. Alternative Work Arrangements Policy 4.2501
Flextime – flexible work schedules during a 37.5 hour workweek which permit variable daily start and end times
Compressed Workweek – workweek (totaling hours) that is condensed into fewer than five days
* Compensatory time off in lieu of earned overtime pay is prohibited by Kentucky law

8. What You Need to Know Working at home outside of regular hours
Non-exempt staff are paid for the hours they actually work and includes all Compensable Time worked
Working at home outside of regular hours
Travel is considered compensable when:
It cuts across the employee’s workday
The employee is required to remain on the premises
Performing work duties during a meal period
*Travel guidelines available on our website

9. Recordkeeping under the FLSA
Employers must keep a record of hours worked for each non-exempt employee
Records must include the hours worked each day (to the nearest quarter hour) and the total hours worked each workweek
Employees report hours worked each week using the semi- monthly timesheet (available on the HR website)
Departments/Unit Heads are responsible for maintaining this record in departmental files for a period of 3 years

10. Semi-Monthly Timesheets

17. Additional information available on our website:
Questions?
Additional information available on our website: