1. FLSA Information Session Implementation of Changes Indiana University 2005 Department of Labor's Fair Labor Standards Act (FLSA) Compliance Review Web site: http://www.indiana.edu/%7Euhrs/flsa/index.html http://www.indiana.edu/%7Euhrs/flsa/index.html

2. 2 Indiana University Session Agenda Overview Personnel Policies Recordkeeping Payroll Processing Other Issues

3. 3 Indiana University Session Overview Introduction Background information of FLSA History of DOL audits at IU FLSA amendments and new regulations Personnel policies and benefits Recordkeeping requirements

4. 4 Indiana University Categories of Professional Positions at IU PAEExempt from Overtime PAO Overtime Eligible PAU Salaried Overtime Eligible

5. 5 Indiana University PAE: Exempt from Overtime Positions meet FLSA duties test and salary level test for exemption from overtime compensation Salary covers all hours worked Receive no additional compensation for hours over 40 in a week

6. 6 Indiana University PAO: Overtime Eligible Positions do not meet the FLSA duties test for exemption from overtime compensation Must receive compensation for hours over 40 in a week

7. 7 Indiana University PAU: Salaried Overtime Eligible Positions meet the FLSA duties test but do not meet the FLSA salary level test for exemption from overtime compensation Part-time positions with an annual salary below $23,660 Must receive compensation for hours over 40 in a week

8. Overtime

9. 9 Indiana University Definitions Overtime: Hours in pay status in excess of 40 in a workweek Pay status: All time worked plus paid time off (vacation, PTO, sick, holiday, etc.) Workweek: Begins and ends at 12:00 midnight on Saturday

10. 10 Indiana University PAO: Overtime Compensation Time and one-half Pay or Comp Time Department’s choice (must announce before overtime is worked)

11. 11 Indiana University PAO: Compensatory Time Off Accumulation limit is 160 hours Pay only option when accumulation limit is reached until accumulation drops below limit Department can pay off comp time at any point Department can require comp time to be used before PTO is used All comp time must be used before going into a no-pay status

12. 12 Indiana University Overtime Points of Interest Employees can arrange flexible scheduling; overtime is to be pre-approved Requires accurate recordkeeping using new timesheet Comp time must be paid or used before a person transfers, promotes, or demotes to a non-overtime eligible position or to another department

13. Paid Time Off (PTO)

14. 14 Indiana University PTO Accruals No change 20 hours/month, 240 hours/year with less than 5 years service 24 hours/month, 288 hours/year with 5 or more years service

15. 15 Indiana University PTO Usage PAE: No change Full-day increments PAO and PAU: Actual time used Annual max usage limit: No change 240 or 288 hours

16. 16 Indiana University Sick Bank Time Adding Time: No change Up to 96 hours unused PTO at end of year Using Time PAE: No change Full-day increments PAO and PAU: Actual time used

17. 17 Indiana University Carry Over PTO to New Year No change 240 hours with less than 5 years service 288 hours with 5 or more years service

18. 18 Indiana University Terminal Pay No change All PTO on books at end of last day

19. 19 Indiana University Recordkeeping PAE: No change PAO and PAU: See new timesheet

20. 20 Indiana University PTO Points of Interest Earned at end of last workday of month PTO earned in first and last month of employment is prorated by portion of month worked Not earned when in no-pay status Must use all PTO up to annual limits before going into no-pay status PAE can charge partial day absences to PTO for FMLA and Workers’ Compensation

21. Travel Time

22. 22 Indiana University Travel Time Travel time during normal work hours is work time Daily commute from home to work and back is not work time Home to one-day assignment in another city Travel time outside normal work hours that exceeds the normal commute time to and from work is work time

23. 23 Indiana University Overnight Travel Counts as work time Driving that the employee is required to perform is work time Time when work is performed while traveling is work time Travel time during normal work hours is work time Travel time on a day off during hours that are normal work hours during the week is also work time

24. 24 Indiana University Overnight Travel Does not count as work time Travel time not covered above is not work time A break in travel for meals is not work time Time at the destination when the employee is free to come and go as he or she wishes is not work time

25. Off-campus Work

26. 26 Indiana University Off-campus Work Lectures, Meetings and Training Programs Approved attendance at these and similar activities is work time if one or more of the following occur: Attendance is during normal work hours Attendance is required by the university The event is work related University work is performed

27. 27 Indiana University Off-campus Work Conferences Time when daily conference activities are completed and the employee is on his/her own is not work time Time for meals, sleep, and voluntary social events that are part of the conference is not work time

28. Policies Applicable to All Professional Staff

29. 29 Indiana University Policies Applicable to All Professional Staff Adverse Weather No Change Staff who are required to work during adverse weather do not receive any additional pay or time off Holidays No Change Same 9 Holidays, each eight hours, prorated by FTE; receive equivalent time off when a holiday is worked Schedule Change No Change Professional staff do not receive any additional pay when a change in work schedule occurs

30. 30 Indiana University Policies Applicable to All Professional Staff Call Back No change Staff do not receive any premium pay for additional trips back to work Change PAO and PAU receive pay for the actual time worked, and the hours worked will count in determining if overtime has been worked for the week Seniority Date/Service Credit No Change All Professional positions (PAE, PAO, PAU) in a department are in the same occupational unit

31. 31 Indiana University Policies Applicable to All Professional Staff New-employee Evaluation Period No change Serve an evaluation period of 6 months PTO No Change Accruals, adding sick time, carry over of PTO, and terminal pay provisions remain the same Change Usage and recordkeeping rules for PTO and sick time for PAO and PAU

32. 32 Indiana University Policies Applicable to All Professional Staff Overtime Change PAO and PAU eligible for overtime compensation and require recordkeeping using new timesheet Travel Time Change PAO eligible to count certain travel time as work time; certain off-campus work activities count as work time

33. Recordkeeping

34. 34 Indiana University Overview Recordkeeping is required by law for accurate overtime calculations Monthly timesheet forms available on the UHRS FLSA Web site Replaces PTO 'Blue' Cards All timesheets kept on file in department Employee and Supervisor signature required

35. 35 Indiana University Processing of Pay Receive regular monthly pay adjusted for overtime and absent w/o pay Overtime for work weeks ending this month paid on next monthly cycle Hours above standard paid on next available off cycle after month end No change to absent without pay -- can be in current or following month

36. 36 Indiana University Timesheet Actual time recorded to the nearest tenth of an hour Weekly total may cross months for overtime calculation Categories for 'Other' types described on instruction sheet Comp Hour balances must be tracked on timesheet PTO and Comp balances carried over month to month

37. Indiana University37 SunMonTueWedThuFriSatTotal Date03/27/0503/28/0503/29/0503/30/0503/31/0504/01/0504/02/05 Hours Worked Comp Hours Used PTO Used Sick Hours Used Holiday Hours Used Other** Hrs Above Std (P/T) Absence w/o Pay Total (Hours in Pay Status) Total Absence w/o Pay Overtime (Hours over 40) Overtime Hours to be Paid Comp Hours Earned*

38. Indiana University38 SunMonTueWedThuFriSatTotal Date04/10/0504/11/0504/12/0504/13/0504/14/0504/15/0504/16/05 Hours Worked Comp Hours Used PTO Used Sick Hours Used Holiday Hours Used Other** Hrs Above Std (P/T) Absence w/o Pay Total (Hours in Pay Status) Total Absence w/o Pay Overtime (Hours over 40) Overtime Hours to be Paid Comp Hours Earned*

39. Payroll Processing

40. 40 Indiana University Payroll Processing for PAO Employees OVT payments processed on next MO on-cycle Addtl reg hrs (HAS) for part-time processed on next off-cycle ABE hrs entered on current MO voucher or on adj voucher for next MO on-cycle

41. 41 Indiana University Adjustment Vouchers for PAO Employees Hrs broken down into FLSA wkly periods per month Separate earn codes/hours by payroll – on-cycle/off-cycle Use “inflated OVT rate” if addtl pay (temp, etc) in same wkly period Include detailed explanations

42. Other Issues

43. 43 Indiana University Other Issues Valid Job Combinations Additional Pay Flat Rates Position E-Docs Temporary Pay Hourly Appointments

44. FLSA Information Session Implementation of Changes Indiana University 2005 Department of Labor's Fair Labor Standards Act (FLSA) Compliance Review Web site: http://www.indiana.edu/%7Euhrs/flsa/index.html http://www.indiana.edu/%7Euhrs/flsa/index.html