Fair Labor Standards Act (FLSA) Education
description
Transcript of Fair Labor Standards Act (FLSA) Education
Fair Labor Standards Act (FLSA) Education
May 2005Revised February 2006
Today’s Facilitators Jami Painter, University Office of Human
Resources – [email protected]
Campus Human Resources Representative Joyce Winn, University of Illinois at Chicago,
Academic Human Resources - [email protected]
Debi Stone, University of Illinois at Urbana-Champaign, Academic Human Resources – [email protected]
Patti Sims, University of Illinois at Springfield, Human Resources – [email protected]
Today’s Objectives To provide education about the Federal
FLSA law and regulations. To provide an overview of the University’s
review process. To provide a summary of the impact on
affected employees. To provide an overview of the reporting
and record retention process for employees changing from exempt to salaried non-exempt status.
FLSA – Background Fair Labor Standards Act (FLSA)
Established in 1938 by the Department of Labor (DOL) Purpose
Establishes standards for: Minimum Wage Overtime Pay Child Labor
DOL first issued exempt status regulations in 1940 Last modification in 1954
Recent regulation revisions effective August 23, 2004 Section 541 (29 CFR 541 et al) – White Collar Exemptions
FLSA - Background FLSA generally requires that employees be
paid: At least federal minimum wage of $5.15 per
hour (Illinois law is $6.50 per hour) Overtime premium pay of time-and-one-half of
the employee’s regular rate of pay for all hours worked over 40 in a workweek for employees in hourly non-exempt status.
Overtime premium pay of one-half of the employee’s regular rate of pay for all hours worked over 40 in a workweek for employees in salaried non-exempt status.
White-Collar Exemptions White-collar exemptions allow for
exemptions from these requirements. Salary Test
1. Employee must be paid at least a certain compensation level;
2. Employee is paid on a salary ,rather than hourly, basis; and
Duties Test3. Employee performs certain exempt duties.
White Collar Exemption Requirement #1 (Salary Test) Salary level
Minimum paid must = $455 per week or more. If paid less than $455 per week, cannot be
exempt even if he/she meets the duties test.
If paid $455 per week or more, can be exempt only if he/she also satisfies the duties test.
Salary cannot be prorated based on FTE.
White Collar Exemption Requirement #2 (Salary Test) Form of payment
Employee must be paid a flat salary, not by the hour (Academic Monthly Salary)
Employee must regularly receive a predetermined amount that cannot be reduced because of variations in the quantity or quality of work performed
White Collar Exemption Requirement #3 (Duties Test) FLSA, Section 12(a)(1) provides exemption
from minimum wage and overtime pay for bona fide employees in the following areas: Executive Administrative Professional Outside Sales Highly Compensated
Section 13(a)(17) also exempts certain computer employees.
University Review Two cross-campus committees formed
Summer of 2004. Academic Civil Service
Representatives from University Human Resources, Campus Human Resources, Legal Counsel, Provosts Offices
Seyfarth Shaw Attorneys, LLP
Civil Service ReviewSalary Test All exempt Civil Service employees satisfied the
salary test ($455/week) based on Banner reportDuties Test All Civil Service classifications were examined for
duties test compliance. In depth review of job descriptions, SUCSS
classifications, and work performed was conducted for several classifications. Some of these included:
Space Administrator III Graphic Designer II Assistant Program Director
Admissions and Records Officer II Events Administrator Information Supervisor Budget Analyst I
Civil Service – Duties Test Selected classification review
State Universities Civil Service System classification review against FLSA regulations
Job description review against FLSA regulations Interviews with supervisors/department heads
to evaluate work performed against FLSA regulations
All Civil Service classifications currently classified as Exempt met the duties test for FLSA exemption.
Academic ReviewSalary Test
Banner report identifying all Academic employees compensated below the $455/week minimum
Total number of Academic employees University wide not meeting salary test = 152
UIC – 90 UIS – 17 UIUC – 45
Academic – Duties TestDuties Test Banner report identifying all Academic employees
(job titles and positions) Review conducted of all Academic positions. In depth review (job descriptions reviewed and
interviews with supervisors/department heads) based on legal counsel recommendations and peer institution reviews, for the following positions: Assistant Coaches Resident Directors Graduate Assistants
Academic – Duties Test Results The following positions met the duties
test for FLSA exemption: Assistant Coaches Resident Directors
Some individuals in these positions may not have met the salaries test, and therefore, cannot be classified as FLSA exempt.
Graduate Assistants – Duties Test Results The following assistantship positions met
the duties test for FLSA exemption: Teaching Assistants (TA) Research Assistants (RA) Para-Professional Assistants (PGA)
TA, RA, and PGA position’s primary role is that of student, not employee, so the salary test is not required.
Graduate Assistants – Duties Test Results Graduate Assistants (GA) did not meet the duties
test and must be classified as salaried non-exempt
Re-classification as salaried non-exempt employees will be effective 8/16/05
Approximate number of GA’s University wide not meeting duties test for 2004-2005 Academic year = 756 UIC – 173 UIS – 160 UIUC – 423
2005-2006 Academic year totals for GA’s may vary
Final Review - Counts Civil Service – Zero employees will be changed
from exempt to salaried non-exempt based on the salary and duties test.
Academic Professionals (AP) 152 employees will be changed from exempt to salaried
non-exempt status based on the salary test. Zero employees will be changed from exempt to salaried
non-exempt based on the duties test. Graduate Assistants (GA) – 756 employees for
the 2004-2005 Academic year would have been changed from exempt to salaried non-exempt status based on the duties test.
Salaried Non-Exempt Employees What will change?
Eligibility for overtime compensation Tracking hours worked
When will the change be effective? On August 16, 2005, the following will occur:
Exempt Indicator on NBAPOSN in Banner changed by Campus HR for individuals identified from the review who are going from exempt to salaried non-exempt status
Academic Professionals not meeting salary requirement begin tracking hours
Graduate Assistants (GA’s) begin tracking hours
Eligibility for Overtime Compensation
Paid predetermined salary on a monthly basis (Academic Monthly Payroll)
Eligible for overtime pay at one-half the hourly rate for all hours worked over 40 for each workweek
Compensatory Time Monetary Compensation
Compensation Compensatory Time
Employees discretion Used at one-half time the number of hours
worked over 40 At time of termination/separation, paid out all
unused compensatory time at one-half the regular hourly rate at the time of termination/separation
Balances and usage maintained within the unit Maximum compensatory time accumulation
allowed = 240 hours
Compensation Monetary Compensation
Paid at one-half the regular hourly rate (full-rate may be found on NBAJOBS, Job Detail Screen, Rate field)
Paid in the form of an adjustment on the job that the overtime was worked, following the end of the pay period in which the overtime was worked
Overtime paid in increments of 15 minutes for hours worked over 40 in a work week
0-7 minutes = 0 8-22 minutes = 15 (.25) 23-37 minutes = 30 (.5) 38-59 minutes = 45 (.75)
Overtime Payment Overtime compensation in the form of pay
Process as an adjustment Earning code = ADD Include dollar amount on monthly job Comment field = FLSA OT
Adjustment must be processed and paid within 13 days of the end of the pay period
Job Aid to assist with performing an adjustment can be found at http://www.obfs.uillinois.edu/jobaids/DTE_PayrollAdjustments.doc
Tracking Hours Academic Salaried Non-Exempt employees
will track hours on the FLSA Salaried Non-Exempt Academic Timesheet (Excel spreadsheet) Form is available in NESSIE, HR Forms section,
at https://nessie.uihr.uillinois.edu/cf/index.cfm?item_id=161
Form may be downloaded and saved to personal desktop/folder for each employee.
FLSA Salaried Non-Exempt Academic Timesheet
Report total hours worked per day Automatic Calculations
Hours worked over 40 in each workweek Number of hours due to employee in the form of
comp time or overtime payment for each monthly pay period
Employee and Supervisor signature required on all timesheets in which overtime hours were accrued
Units may choose to collect employee timesheets and signatures for all months for documentation and retention purposes
Spreadsheet/paper form retained in the unit
FLSA Salaried Non-Exempt Academic Timesheet
Hiring Salaried Non-Exempt Academic Staff DART calculator will be available to
determine if employee meets the minimum salary test Administrative Applications section in DART FLSA exemption status should be determined
BEFORE a verbal or written offer is made Unit enters annual salary and number of
months of service; calculator displays weekly salary
Until calculator is available, units may manually determine the weekly salary by using this formula: Annual Salary / # Mo Paid / 4.333 = Weekly Salary
Hiring Salaried Non-Exempt Academic Staff Banner Position Creation and Maintenance
Exempt Indicator defaults from the p-class Confirm Exempt Indicator box in NBAPOSN is
not checked If checked, uncheck the field
Employees utilizing same p-class may have different FLSA exemption statuses because of weekly salary
Banner FLSA Indicator Campus Human Resources will fix FLSA
Indicator for Academic employees identified during the review
Beginning August 16, 2005, units will be responsible for ensuring FLSA status is correct (UIC and UIUC only)
Academic Exempt Reporting Applies to the following employee groups:
Academic Professionals (AP) who meet the $455 salary requirement
Faculty Teaching Assistants (TA) Research Assistants (RA) Para-Professional Assistants (PGA) Post-Doc Research Associates/Interns
Academic Exempt Reporting Report absences in four (4) and eight (8) hour increments
only. Part-time Academic employees report in half- and full-day
increments based on their work schedule. Example: an employee who works six hours per day would report in
three and six hour increments. Employees may not accumulate time over multiple days to
reach the 4 and 8 hour increments. Example: an employee who is absent two hours on Monday and
two hours on Tuesday does not report four hours of absence. Absences of less than 4 or 8 hours per day are not reported
against vacation or sick leave usage. Exempt employees are still expected to be available for
customers/clients and perform their work responsibilities above and beyond the normal University workweek, in order to fulfill their professional responsibilities.
Summary No Civil Service employees will be changed from exempt to
non-exempt All Academic Professional employees not meeting the
minimum salary requirement ($455/wk) and all Graduate Assistants (GA’s) will be changed from exempt to salaried non-exempt status effective August 16, 2005
Academic Professionals not meeting salary requirement and all GA’s will begin tracking hours on FLSA Salaried Non-Exempt Academic Timesheet August 16, 2005
Units responsible for determining FLSA exemption status and verifying FLSA Indicator in Banner August 16, 2005 (UIC and UIUC only)
Exempt Academic employees report absences in 4 and 8 hour increments only (full- and half-day for part-time employees)
Online Resources FLSA Information and Resources
https://hrnet.uihr.uillinois.edu/dart-cf/index.cfm?Item_id=2734 FLSA Salaried Non-Exempt Academic Timesheet
(NESSIE HR Forms, Policy/Labor, and Leave sections) https://nessie.uihr.uillinois.edu/cf/index.cfm?item_id=161
Pay Adjustment Job Aid http://www.obfs.uillinois.edu/jobaids/DTE_PayrollAdjustments.doc
2006 Payroll Schedule http://www.obfs.uillinois.edu/earnings/2006payrollschedule.xls
DART Administrative Applications https://eas.admin.uillinois.edu/eas/servlet/EasLogin?redirect=https://hrnet.uihr.uillinois.edu/dart-cf/admin/index.cfm
Fair Labor Standards Act
QUESTIONS?