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FastFactsFeature Presentation

March 28, 2012

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© 2012 The Johns Hopkins University. All rights reserved.

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Today’s TopicWe’ll be taking a look at…

Hours Worked under the Fair Labor Standards ActComp Time vs. Time Off Plan

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Today’s PresenterJill HornCompensation Manager for The Johns Hopkins University

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Session Segments

PresentationJill will talk about what constitutes paid working time.During Jill’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Jill will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.eduYou can also send us an instant message!

GoogleTalk – HopkinsFastFacts@gmail.comAOL Instant Messenger – HopkinsFastFactsMSN – FastFacts@jhu.edu

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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How To View Full Screen

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Hours Worked and Time Off Plans

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FastFacts Series on Compensation Topics

Four FastFact sessions:1. Hours Worked and Time Off Plans2. Understanding & Calculating Regular Rate

(April 24, 2012)3. Tracking Time in E210 & Processing Overtime in SAP

(May 10, 2012)4. Overtime Pay – Real Life Scenarios & Special Issues

(June 7, 2012)

This presentation applies to university non-bargaining unit employees.

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What Are Hours Worked?

Compensable work time under the Fair Labor Standards Act (FLSA)

FLSA governs labor practicesJHU is covered by the FLSA

Applies to non-exempt employeesApplies regardless of where the work is performed (i.e., at home)

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“Suffered or Permitted”

Work not requested but suffered or permitted to be performed

Must be paid for by employerEven if employee does not obtain permission to work additional hours

Employees who work without prior authorization must be paid but may be subject to disciplinary action (JHU policy)

Even if performed during lunch or before start time Even if employee does not want to be paid (e.g., volunteering time to get work done)

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Waiting Time – “Engaged to Wait”

Counted as hours worked when:Employee is unable to use the time effectively for his or her own purposes; andTime is controlled by the employer

Not counted as hours worked when:Employee is completely relieved from duty; and Time is long enough to enable the employee to use it effectively for his or her own purposes

Determining when waiting time is compensable may not always be straightforward. Consult with HR.

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On-Call Time

Counted as hours worked when:Employee has to stay on the employer’s premisesEmployee has to stay so close to the employer’s premises that the employee cannot use that time effectively for his or her own purposes

Not counted as hours worked when:Employee is required to carry a pagerEmployee is merely required to leave word at home or with the employer on where he or she can be reached

Determining when on-call time is compensable may not always be straightforward. Consult with HR.

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Rest & Meal Periods

Meal periods are not hours worked when:Meal break is generally at least 30 minutesEmployee is free to leave his or her work areaEmployee is relieved of duties for the purpose of eating a meal

Rest periods of short duration (normally 5-20 minutes) are counted as hours worked and must be paidBreastfeeding breaks

Law requires provision of “reasonable” unpaid breaks to nursing mothers for up to one year every time they need to express breast milkRequired to provide employees a private location other than bathroom

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Sleep Time

Less than 24 hour dutyEmployee who is on duty for less than 24 hours and must work when required is considered to be working even if allowed to sleep or engage in other personal pursuits

Duty of 24 hours or moreEmployers can exclude bona fide sleep* and meal periods

* Bona fide sleep = Regularly scheduled sleeping period of no more than 8 hours with adequate sleeping facilities, minimum 5 hours uninterrupted sleep time, and employer/employee agreement to exclude sleep time

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Lectures, Meetings, & Training Programs

Time employees spend in meetings, lectures, or training is considered hours worked and must be paid, unless all of the following criteria are met:

Attendance is outside regular working hours, and Attendance is voluntary, andThe course, lecture, or meeting is not job related, and The employee does not perform any productive work during attendance

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Travel Time

Whether time spent traveling is work time depends upon the kind of travel involvedOrdinary “home to work” travel is not work time

Travel to alternative work site is still normal “home to work” travel

Travel between job sites during the normal work day is work time

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Travel Time – Special Rules

Special rules apply to travel away from the employee’s home communityExample:

Employee required to travel to NYC for dayTravel time 8:00 a.m. to 7:00 p.m.Normal working hours 9:00 a.m. to 5:00 p.m.Time traveling and working is compensable EXCEPT:

“Home to work” travel, i.e., home to train station – Only include amount of time that is similar to amount of

time spent in normal commute from home to work

Meal time

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Travel Time – Overnight

Considered work time when…Travel is during the employee’s regular working hours whether or not employee actually performs workTravel is during regular working hours on non-working days such as Saturday or SundayEmployee performs work while travelingEmployee is required to operate vehicle or other mode of transportation

Meal times still deducted from hours worked

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Travel Time – Overnight

Not considered work time when…Travel time outside of regular working hours as a passenger is not compensable time

Other consideration…If the employee has option of public transportation but chooses to drive, the employer may count hours worked as either the driving time or the time using public transportation

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Travel Time – Overnight Example

ScenarioNon-exempt employeeStandard work schedule is M-F 8:30 a.m. to 5:00 p.m.Normal home to work commute time is 30 minutesSent from Baltimore to Florida for work conferenceTravels to Florida via airplane Sunday from 9:00 a.m. to 4:00 p.m.

Leaves house at 8:30 a.m. to drive to Baltimore airportTakes 30 minutes to eat meal while traveling Leaves airport in Florida at 4:00 p.m. to take train to hotel; arrives at hotel at 5:00 p.m.

Travels home via airplane Tuesday from 4:30 p.m. to 10:30 p.m.

Leaves hotel in Florida at 4:00 p.m. to take taxi to airportSpends 2 hours on plane working

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Travel Time – Overnight Example

Sunday: Total Hours Worked is 7.5 hours6.5 hours: airplane travel during working hours minus 30 minute meal time 1 hour: train travel to hotelTravel from house to airport not included even though it was during normal working hours because it is considered “home to work” travel

Tuesday: Total Hours Worked is 3 hours½ hour: taxi travel to airport during working hours½ hour: airplane travel from 4:30 p.m. to 5:00 p.m. (time after 5:00 p.m. not included because not during working hours)2 hours: working on airplane

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Travel Time – Overnight Example

What if employee was required to drive from Baltimore to Florida?

All driving time would be considered hours worked whether or not during normal working hoursMeal times excluded

What if employee chose to drive?Employer may determine hours worked by using either the driving time or the time using public transportation

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Other Situations

Preliminary & Postliminary activitiesActivities performed before or after employee’s specified work scheduleCompensable if “integral and indispensable” to an employee’s “principal activities” (Not clearly defined)“Continuous workday” – all activities between first and last principal activity on a work day are compensable

Non-compensable activity example:Employee working at restaurant at airportRequired to pass through security screeningActivity required by airport not restaurant; restaurant not benefited

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Other Situations

Compensable activity examples:Donning and doffing clothing (depends on circumstances)

Takes place on employer’s premisesHeavier and/or more unique gear or uniform, i.e., mesh apron, shin & arm guards, special suit for working with hazardous material

Maintenance of machineryE.g., employee who operates machinery is required to oil and clean it in order to operate

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De Minimis Rule

Allows for insignificant periods of time outside scheduled working hours to be disregarded in recording working timeApplies only where a few seconds or minutes of work are involved and where the failure to count such time is due to considerations justified by industrial realities, e.g., cannot as a practical administrative matter be precisely recorded for payroll purposesDe minimis definition varies, e.g., $1+ of additional pay, 10 minutes additional time, etc.

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Keeping Track of Hours Worked

Complete and accurate records of hours worked is required by FLSA and JHU Policy for non-exempt staffE210 is not only a leave tracking system; should be used to record actual hours workedNon-exempt employees need to record their work hours weekly and supervisor/timekeeper needs to review time sheets weekly

Additional pay for hours worked beyond regular standard hours must be submitted in SAP for payment within the next pay period

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Comp Time vs. Time Off Plan

Comp Time – The substitution of additional hours worked today for leave at a later date in a following pay period

Not permitted by law (Private employers like JHU)Time Off Plan – Allows time off during the same pay period in which the employee worked in excess of the standard work week

Permissible but difficult to administer properlyDiscourage the use of time off plan

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Implementing Time Off Plan

Calculating time off for hours worked…… in excess of standard work week but less than 40 hours:

1 hour worked equals 1 hour time off… in excess of 40 hours:

1 hour worked equals 1.5 hours time off Overtime hours can only occur in the first week of the pay period and the leave (time off) must be taken in the second week of the same pay periodUnless you can give time off in the same pay period in which the overtime was incurred, the employee must be paid accordingly for all hours worked by submitting a Bonus/Supplemental ISR

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Summary

Hours WorkedCompensable work time under Fair Labor Standards ActRequired to pay non-exempt employees for all time workedUnderstanding what constitutes Hours Worked:

Wait Time, On Call Time, Meal & Rest Periods, Sleep Time, Travel Time, Lectures, Meetings, Training, Preliminary and Postliminary Activities

Time Off Plan Allows time off during the same pay period in which the employee worked in excess of the standard work week

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FastFacts Series on Compensation Topics

As a reminder, the other FastFacts in this series will cover the following topics:1. Understanding & Calculating Regular Rate

(April 24, 2012)2. Tracking Time in E210 & Processing Overtime in SAP

(May 10, 2012)3. Overtime Pay – Real Life Scenarios & Special Issues

(June 7, 2012)

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We’re going to open the phone lines now!

There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.

We’ll be answering questions in the order that we receive them.

We’ll also be answering the questions that were emailed to us during the presentation.

If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

Q&A

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: fastfacts@jhu.edu

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Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!