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Review:Fair Labor Standards Act (FLSA)District Overtime Compensation

Presented to SAISD Non-Exempt Employees

Presenters: Campus Principal/Department Head2013-2014

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Who is covered by the FLSA?(Non-Exempt Workers)

Paraprofessional and Classified employees paid by the hour such as: Secretaries Data/Attendance Clerks Instructional Assistants Custodians Food Service Managers, Cooks, etc. Police Officers

For complete list, refer to handout or call Travis McKelvain at 554-8460.

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What does the law require? (Cont’d)

Overtime compensatory time or pay at a rate of not less than one and one-half times of their hourly rate of pay is required for hours physically worked in excess of 40 hours in a work week.

* The term “overtime” refers specifically to time worked in excess of 40 hours in a work week.

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What does the law require? (Cont’d)

The scheduled workweek for most instructional assistants is 37.5 hours. These employees are to be compensated at the standard rate (hourly wage) for additional hours worked up to 40 hours. The overtime rate increases to one and one-half times after physically working 40 hours.

* The terminology used to describe this requirement for overtime, whether it is provided in compensatory time or pay, is “additional compensation”.

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What does the law require?

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 an hour.

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What does policy require? (Non-Exempt)

Overtime must be authorized before the overtime is scheduled to be worked

Payment shall be in compensatory time unless otherwise notified

Comp time may not accrue beyond 60 hours and must be used within the duty year in which it is earned (Exceptions must be approved by Human Resources)

The SAISD work week begins12:00 a.m. Saturday and goes through 11:59 p.m. Friday

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What are FLSA Exemptions?

Exemptions are determined based on actual work and responsibilities, not titles, job descriptions, or incumbent qualifications.

Exempt status depends on: Salary level Primary duty Basis of pay

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What does policy require? (Exempt)

The salaries of all eligible EXEMPT employees are intended to cover all hours worked.

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What is a Supervisors’ responsibility regarding overtime?

Notify employees of procedures

Establish internal procedures to include pre-approval and record keeping

Adhere to Board Policy DEA (Local) (Legal) and Administrative Procedure C3

Maintain appropriate documentation including Form C3-A to track accrual and payment of overtime

Take appropriate disciplinary action against violators – after compensating

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What is the preferred way to address additional time worked?

1st Flex Time:Flex time is adjusting an employee’s hours within the workweek to prevent an employee from exceeding 40 hours in a single workweek.

Example: Janie receives permission to stay two hours late on Monday and leaves two hours early on Friday. She has worked her scheduled 40 hour workweek and no overtime compensation is required.

* Flex time must be used within the same workweek.

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What is preferred way to compensate an employee for Overtime

1st Compensatory Time:Compensatory time is payment in time rather than money. Compensatory time is computed at the same rate as pay, hour for hour up to 40 physical hours and 1.5 hours for every hour worked beyond 40 physical hours within the workweek.

* Compensatory time shall not accrue beyond 60 hours annually and must be used by August 31 of each year

2nd Pay: Standard rate to 40 hours, premium rate (time and a half) beyond 40 physical hours

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What are the implications?

Nonexempt employees must be compensated for “volunteering” or “unauthorized” work beyond their scheduled work day

For all hours physically worked over 40, compensation must be calculated at the premium rate of one and one half times the employee’s standard pay or time

In accordance with administrative procedure C3, funds must be in the campus budget prior to authorizing pay for overtime

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Calculating Overtime

Additional compensation is required for all hours worked beyond the scheduled work hours in a workweek.

Rate of compensation is determined by the number of hours beyond 40 an employee has physically worked.

Standard Rate = hourly rate of pay or time up to 40 hours physically worked within workweek.

Premium Rate = One and one half (1.5) times the hourly rate of pay or time begins after an employee has physically worked 40 hours in a workweek.

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Example #1 – Standard Rate

Ms. Smith, an instructional assistant, works 37.5 hours per week. She assisted the principal Wednesday evening for an additional 2 hours.

Ms. Smith worked a total of 39.5; two hours beyond her scheduled workweek.

Ms. Smith is entitled to two hours of additional compensation at the standard rate because she did not physically work the 40 hours required to receive time and one-half.

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Example #2 – Premium Rate

Ms. Garcia, the secretary, works 40 hours per week. Ms. Garcia also assisted the principal for two hours Wednesday evening.

Ms. Garcia physically worked a total of 42 hours; two hours beyond her scheduled workweek.

Ms. Garcia is entitled to 2 hours of overtime at the premium rate of one and one-half her hourly rate because she exceeded 40 hours during the workweek.

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Example #3 – Standard &Premium Rate

Mr. James, a PE Assistant, worked 5 hours Thursday evening helping the coach prepare for Field Day.

Mr. James physically worked 42.5 hours, 5 hours beyond his scheduled workweek of 37.5 hours.

2.5 hours will be compensated at the “standard rate” (37.5 + 2.5 = 40)

2.5 hours will be compensated that the “premium rate” (40 + 2.5 = 42.5)

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What happens when a dual role exists?

Employee’s who have children on a campus may participate in activities such as those listed below without the expectation of additional compensation: Assist in the child’s classroom Attend field trips Drive the U-Haul for the band Chaperone dances, games, programs, etc.

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What are the restrictions?

• Employee’s child must be participating in the event

• Employee must request to participate in the event

• An employee who is volunteering in their child’s classroom or who is volunteering to attend a field trip, etc., with their child’s class must have approval of the principal/supervisor and will be required to use a personal day.

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What are the consequences for non-compliance?

The District will address violations FLSA through: The evaluation process Other appropriate disciplinary actions such as:

a. Documentation

b. Reassignment

c. Termination

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Required Forms

Acknowledgement FormAfter today’s training, participants will be required to sign an Acknowledgement Form stating understanding of District overtime policies and procedures

C3-C Extended Hours Completion of C3-C is required for any employee

who must stay beyond the scheduled workday due to extenuating circumstances such as transportation.

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Where can I learn more?

References: http://www.dol.gov/esa/regs/compliance/whd/hr

g.htm#8

Contact: HR for rules and regulations Finance for payroll questions