1. Fair Labor Standards Act (FLSA)
Presented by
County of Riverside – Human Resources
Debbie Shinn
Jennifer Moquin

2. Fair Labor Standards Act (FLSA)
Requires employers to compensate non-exempt employees one-and-one-half-times their regular rate of pay, for hours actually worked over 40 in an FLSA work week.
Exempt employees are not entitled to receive FLSA overtime.

3. What is changing?
The County’s Classification & Compensation Unit is reviewing all job classifications to determine whether each class is exempt or non-exempt.
Some classifications will move from exempt to non-exempt; others will move from non-exempt to exempt. (Please see the Class and Salary listing located on: under Resources for the latest update.)

4. Who is subject to the overtime changes?
FLSA overtime applies to “non-exempt” employees within the following Bargaining Units:
SEIU
LIUNA
As well as:
Non-exempt employees covered by the Management Resolution.
Exempt employees are not eligible for overtime pay under FLSA rules.

5. FLSA Overtime Calculations:
Overtime is based on time actually worked over 40 hours in an FLSA work week (not time paid). For example, Suzie reported 32 hours Regular, 8 hours Vacation and 4 hours Overtime. Suzie is not eligible to be paid time and one half for the overtime hours, since she worked fewer than 40 hours in the FLSA workweek.

6. FLSA Overtime Calculations:
An FLSA work week is based on an employee’s FLSA schedule as listed in Time & Labor.
FLSA work weeks consist of 168 consecutive hours (7 days x 24 hours per day).

7. FLSA Work Schedules
Overtime will not be evaluated accurately unless the correct FLSA schedule is updated in PeopleSoft HRMS.
Timekeepers will be given detailed instructions for updating these schedules in HRMS.

8. How the System will Account for 9/80 Days:
In the example above, John works a 9/80 schedule with non pay week Monday off. For those on 9/80 schedules, the 8 hour day is divided in half. (For example, hours between 8 a.m. and noon would fall in FLSA Week 1. Hours between 12:30 and 4:30 p.m. would be in FLSA Week 2.)

9. FLSA Rate: FLSA rate is computed as:
(Total hours worked x the pay rate) + (total cost of applicable differentials) divided by the total hours worked (including overtime hours) = average FLSA rate.
Example: Employee's pay is $10.00 per hour. The employee has $ in differentials earned and has worked 40 regular hours, and 6 overtime hours. The FLSA rate will be computed as (46 x $10.00) + $32.00)/46 = $ The FLSA Overtime rate is $10.70 x 1.5 = $16.05.

10. Evaluation of Hours Worked
At the end of the pay period, time worked in excess of the employee’s schedule will be evaluated and compared to the FLSA work week. If the FLSA work week has not been completed during the pay period, hours in excess of the scheduled hours will be paid at straight time (XOT).
The following pay period the entire FLSA workweek will be re-evaluated and eligible hours (those worked over 40 in the FLSA work week) will be adjusted and paid at the FLSA overtime rate.
After re-evaluation, if the hours are not eligible for FLSA overtime there will be no adjustment made in the following pay period.

11. Time Sheet Examples
John Smith works a 9/80 schedule, with non-pay week Monday off. During the pay period of 4/12/07 through 4/25/07, John is claiming that he has worked 2.0 hours overtime during the current pay period.

12. In the paycheck sample 4/12/07 – 4/18/07 Mr. Smith was compensated
In the paycheck sample 4/12/07 – 4/18/07 Mr. Smith was compensated .5 straight time on 4/17/07. The system evaluated the time as straight time since Mr. Smith had taken vacation and the total hours worked were less than 40.

13. The additional 1.5 hours were paid at straight time for 4/19 and 4/25/07. The hours for 4/19/07 would not be considered overtime since Mr. Smith took vacation and did not work over 40 hours. The half hour on 4/25/07 will be evaluated in the following pay period.

14. If it is determined that John Smith had worked over 40 hours during FLSA Week 3, Mr. Smith would see an adjustment for the remaining time on the following paycheck.

15. Summary
Overtime adjustments will be made after the FLSA schedule is complete and evaluated.
Overtime is paid on FLSA weeks completed during the pay period.
The 9/80 day will be split in half to total 40 hours scheduled in each FLSA work week.

16. FLSA
Let’s review what has changed regarding payment of FLSA Overtime at the County of Riverside.

17. Review Choose the best answer:
John is a Custodian and works five 8 hour days, Monday through Friday (his FLSA schedule is Thursday through Wednesday). Monday is a holiday and John is paid for 8 hours holiday. John worked 10 hours each day on Tuesday, Wednesday, Thursday and Friday. How much overtime would John be entitled to in the pay period?

18. Review Choose the best answer below:
A.) John is entitled to 4 hours overtime
B.) John is not entitled to overtime
C.) John is entitled to 8 hours overtime

19. Answer B.) John is entitled to 4 hours overtime.
Due to the holiday in Week 1, John only had 36 hours worked including the 4 hours overtime reported. During FLSA Week 2 John had 44 hours worked, therefore John would receive 4 hours paid at straight time in FLSA Week 1 and 4 hours paid at time and one half for FLSA Week 2.

20. Review Choose the best answer:
Jim periodically is required to stay late for his job as a Department Director. Jim’s position is considered exempt. Below is an example of Jim’s timesheet. How much overtime is Jim entitled to be paid?

21. Review Choose the best answer:
A.) Jim is entitled to 9 hours overtime.
B.) Jim is entitled to 5 hours overtime, since he only had 36 hours worked in week 1.
C.) Jim is not entitled to any overtime.

22. Answer
C.) Jim is not entitled to any overtime Since Jim’s classification is exempt, he is exempt from Federal overtime regulations.