Functional Area #1 - Compensation and Wage Hour - P11 Functional Area #1 - Compensation/Wage and...

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Functional Area #1 - Compensation/Wage and Hour – P1

©2017 TPO - The HR Experts All Rights Reserved. www.tpohr.com

OVERVIEW OF THE CLASS AND LEARNING OBJECTIVES

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Presented by:

Gina de Miranda, M.A., SPHR-CA, SHRM-SCPTPO Bilingual Consultant

PHRca [email protected]


OBJECTIVES FOR THIS CLASS

Helping You…

• Get Registered for the PHRca – Painlessly!

• Understand The Test’s Dynamics and Acquiring Test-Taking Skills

• Create Your Personal Strategy for Taking and Passing This Test

• Master the Sections that You Need to Master to Get a Passing Grade

• Create the Foundation for Your Future Career Goals

• Get an Overview of The Wage and Hour Section of the Test

2©2017 TPO - The HR Experts All Rights Reserved. www.tpohr.com

HELPING YOU TO GET REGISTERED

• To register, you need to go to HRCI.org

• Here is where you apply: https://www.hrci.org/how-to-get-certified/apply-for-certification/application-process

• You will need an updated resume and job description to fill out the application form which you will download from the site or fill out online.

• Before you fill out the application, you will need to review the qualifications for the test.


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QUALIFICATIONS FOR THE PHRca

You Are Qualified to Take the PHRca Exam…

If you meet ONE of the following conditions for education and experience:

• At least one year of experience in a professional-level HR position + a Master’s degree or higher,

• At least two years of experience in a professional-level HR position + a Bachelor’s degree, OR

• At least four years of experience in a professional-level HR position + a high school diploma.


AFTER REGISTRATION

Once you are registered for the test, you will have 180 days during which the test may be taken. Try to take the test as soon as possible AFTER the prep class is finished. Stay in test-taking shape, by doing the following:


While you are waiting, keep taking practice tests.

Work on memorizing your facts, formulas and knowledge.

Have friends drill you or use the flash cards as much as

possible.

Work on keeping your mind in the right state as outlined in test dynamics slide.

UNDERSTANDING THE TEST’S DYNAMICS

The test has four sections corresponding to the functional areas of knowledge that you must know. The Four Functional areasand their proportionate weight for the exam are:


Compensation/Wage and Hours = 22%

Employment and Employee Relations = 46%

Benefits and Leaves of Absence = 20%

Health, Safety and Worker’s Compensation = 12%

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CREATING YOUR OWN STRATEGY

Before you came to class, you should have taken the pre-test. This permits you to know what you know and where you are weak. Let’s use that knowledge.


• Compensation/Wage and Hours• Employment and Employee Relations• Benefits and Leaves of Absence• Health, Safety and Worker’s Compensation

• WHERE YOU ARE STRONG • WHERE YOU MUST FOCUS YOUR STUDIES• WHERE YOU NEED HELP

MASTERING TEST TAKING

Test-taking is a skill like any other skill. Mastering test-taking is a function of:

• Understanding and being used to a timed exercise

• Remembering facts and formulas

• Pacing yourself during the test

• Remaining calm, focused and logical during the test

• Reading every word in the question and determining those which are intended to create confusion

• Eliminating answers8


CLASS RULES FOR SUCCESS

You will need to do your readings each week as well as exploring some of the websites from some of the agencies that we will be talking about.

You will need to bring questions to class about what you have read.

You will need to apply what you learn via the practice test-taking, flash cards and other memorization tools that we are providing.

You will need to practice calculating overtime, non-productive time and other concepts.

By the way, non-productive time calculations will not be on this test, because the court cases and AB 1513 did not come into effect until 2015, so they won’t be on this test. You need to be aware of these concepts for your own career.


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FUNCTIONAL AREA #1

Compensation/Wage and Hour


EXAM-SPECIFIC OVERVIEW“Getting it in to Context”

FUNCTIONAL AREA #1Wage and Hour

This area is worth 22% of your test score

Responsibilities under this functional area:

• Develop and implement policies and procedures to comply with state law.

• Ensure compliance with state wage and hour laws as outlined in the 17 wage orders from the Department of Industrial Relations.

• Develop and implement policies and procedures relating to independent contractors.

• Establish and administer payroll, timekeeping, documentation and records retention policies and procedures under laws governing compensation.




Knowledge:

• Definition of all wages (including split shifts, reporting time pay, on call, makeup time, premium pay, travel time and commissions)

• Wage orders

• Minimum wage requirements and exceptions (prevailing wages and living wages)

• Vacation pay and paid time off (PTO)

• Overtime regulations including calculating multiple rates of pay and effects of bonus payments on overtime calculations

• Job classifications for exempts and non-exempts©2017 TPO - The HR Experts All Rights Reserved. www.tpohr.com

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Knowledge Continued…• Rules pertaining to independent contractors

• Timing of payments (for example: regular pay, overtime, direct deposit and final pay) as well as fines and penalties for non-compliance)

• Rest and meal periods

• Definitions of work day, work week including alternative work week schedules (aws)

• Permitted and prohibited payroll deductions (example: exempt employees and gratuities)

• Business expense reimbursement13




Knowledge Continued…

• Garnishments and bankruptcy

• Role and responsibilities of the Department of Labor Standards Enforcement

• State law requirements for timekeeping

• Legal requirements for individual notices and documentation on pay stubs

• Legal requirements for postings and notices

• Documentation and records retention requirements14©2017 TPO - The HR Experts All Rights Reserved. www.tpohr.com


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ORG CHART for DEPARTMENT OF INDUSTRIAL RELATIONS

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FUNCTIONAL AREA #1

Compensation/Wage and Hour

EXAM PREPARATION COURSE

Study Guide Review


Wage Claim Adjudication

Adjudicates (adjudicates means settles, resolves, decides or referees when necessary) wage claims on behalf of workers for claims of unpaid wages, overtime or vacation.


Bureau of Field Enforcement

Investigates and enforces statutes covering workers’ compensation insurance coverage, child labor, cash pay, unlicensed contractors, Industrial Welfare Commission Orders, and group minimum wage and overtime claims.

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PUBLIC WORKS

Investigates and enforces statutes covering private contractors with regards to prevailing wage law.


Retaliation Complaint Investigations

Investigates complaints alleging discriminatory retaliation in the workplace.


Judgement Enforcement

Enforces judgements for unpaid wages and penalties

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Department of Licensing & Registration

Provides licensing and registration for organizations that must have licenses to be in business.


Legal

Represents legal cases.

Amicus Briefs

Amicus Briefs are legal documents filed in appellate court cases by non-litigants with a strong interest in the subject matter. The briefs advise the court of relevant, additional information or arguments that the courts might wish to consider.


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Industrial Welfare Commission Orders


OFFICIAL NOTICEINDUSTRIAL WELFARE

COMMISSIONORDER.NO. 5-2001

REGULATING WAGES, HOURS AND WORKING

CONDITIONS IN THE PUBLIC HOUSEKEEPING

INDUSTRYEffective July 1, 2003 as amended

Revised 10/2006


1. Manufacturing

2. Personal Services

3. Canning, Freezing and Preserving

4. Professional, Technical, Clerical, Mechanical and Similar Occupations

5. Public Housekeeping

6. Laundry, Linen Supply, Dry Cleaning and Dyeing

7. Mercantile

8. Industries Handling Products After Harvest

9. Transportation

10. Amusement and Recreation

11. Broadcasting

12. Motion Picture

13. Preparing Agricultural Products for Market on the Farm

14. Agricultural

15. Household

16. Certain On-site Occupations in the Construction, Drilling, Logging and Mining Industries

17. Miscellaneous Employees

Industrial Welfare Commission (IWC)

©2017 TPO - The HR Experts All Rights Reserved. www.tpohr.com27

1. Manufacturing

2. Personal Services

3. Canning, Freezing and Preserving

4. Professional, Technical, Clerical, Mechanical and Similar Occupations

5. Public Housekeeping

6. Laundry, Linen Supply, Dry Cleaning and Dyeing

7. Mercantile

8. Industries Handling Products After Harvest

9. Transportation

10. Amusement and Recreation

11. Broadcasting

12. Motion Picture

13. Preparing Agricultural Products for Market on the Farm

14. Agricultural

15. Household

16. Certain On-site Occupations in the Construction, Drilling, Logging and Mining Industries

17. Miscellaneous Employees

Which Four Orders Have Variables to the Overtime Requirements?

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Orders Four and Seven Variables to The Overtime Rules

Orders 4 and 7 - Inside Sales

• The employee’s earnings exceed 1.5 times the state minimum wage; and

• At least 50 percent of the employee’s total compensation is from commissions.


Order Ten Variation from Overtime

Order Number 10 – Ski Industry

• In the Ski Industry overtime does not kick in until an employee has worked in excess of ten hours in one day or 48 hours in a week.


Order 14 Variation from Overtime

Order Number 14 – Sheepherders

• Sheepherders are paid a different rate than is required under California minimum wage laws, they have requirements for certain working conditions such as a place to receive mail, phone and visitor access to fixed site housing or mobile housing.


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Considering the IWC Orders

The Big Difference Between Exempt vs. Nonexempt…

Nonexempt are Covered by The IWC Orders.Exempt are NOT Covered by The IWC Orders.Employers have the burden of proof.



Exempt Employee

What is an Exempt Employee?

Compensated based on service and results.

Must receive a salary equal to at least two times minimum wage calculated on a weekly basis.

At least 51% of an employee’s job must be classified as exempt activities.


Nonexempt Employee

What is a Nonexempt Employee?

Compensated by the hour

Must be paid AT LEAST minimum wage

Receives overtime over 8 hours in one day

Covered by all meal and rest break rules in the IWC orders

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Example:

Retail Store Manager


Employee Working as Exempt and Nonexempt

What are the Six Exemption Tests?

• Administrative

• Executive

• Professional

• Computer

• Outside Sales

• Commissioned Inside Sales


Who Needs a Child Labor Work Permit?

Anyone under age 18 who has not yet graduated from high school or earned their GED


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What is an Independent Contractor?

An Independent Contractor is a person, business, or corporation that provides goods or services to another entity under terms specified in a written contract or verbal agreement. Employers need to be careful when classifying individuals that are conducting business for them to ensure they are correctly classifying them as an independent contractor or as an employee. Because independent contractors are not employees, many state and federal laws do not apply when dealing with the compensation owed for the work performed. Therefore, an incorrect classification can result in fines, penalties, and unpaid wages.


What is Minimum Wage?

The minimum wage is the lowest amount of compensation an employer can offer an employee to perform work, with few exceptions.


What is Prevailing Wage?

In government contracting, a prevailing wage is defined as the hourly wage, usual benefits and overtime, allegedly paid to the majority of workers, laborers, and mechanics within a particular area. Prevailing wages are established by regulatory agencies for each trade and occupation employed in the performance of public work, as well as by State Departments of Labor or their equivalents.


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What is Living Wage?

A wage that is high enough to maintain a normal standard of living.



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