FLSA Fair Labor Standards Act
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1 FLSA Fair Labor Standards Act Staff Information and Training Dawn Miller, Sr. HR Generalist November 14,
2 Welcome and Agenda Overview of the FLSA and upcoming changes Difference between exempt and non-exempt Moving from exempt to non-exempt What constitutes work as defined by regulation? Travel time, on-call and the FLSA Managing compliance and overtime Q & A 2
3 Why Change & Why Now? To comply with the Fair Labor Standards Act (FLSA) FLSA affects most public and private employers Effective Date 12/1/2016 (pay period beginning 11/20) 3
4 Valued Contributions All work performed in exempt and non-exempt positions is important to Augsburg s success Your contributions to Augsburg are valued and appreciated This is a major change - we will encounter unforeseen questions and challenges and will work through them together 4
5 Overview of FLSA Fair Labor Standards Act Signed into law in 1938 Establishes minimum wage, workweek, overtime pay, recordkeeping and youth employment standards Established tests for which positions may be classified as exempt from overtime (salaried) Duties and Salary Tests 5
6 Non-Exempt or Exempt Non-Exempt Commonly known as hourly Employees are paid for all time worked Overtime is paid for hours worked in excess of 40 hours per week Must be allowed a meal break for every 8 hours worked Most U.S. workers are in this classification Exempt Commonly known as salaried Paid a weekly amount regardless of how many hours are worked Overtime is not paid for hours worked in excess of 40 hours per week Employee must earn a minimum weekly salary Position must pass one or more duties test(s) 6
7 Duties Tests In addition to the minimum salary, employees must meet one or more duties tests Executive Administrative/Academic Administrative Learned Professional Teacher Outside Sales/Artistic/Computer 7
8 Salary Effective December 1, 2016, employees classified as exempt under the FLSA must be paid a minimum salary of $913/week Annual salary of $47,476 Minimum salary may NOT be pro-rated for part-time employees Employees working 9,10 or 11 month terms may still be exempt if they meet the weekly salary requirement for the months they work 8
9 Moving from Exempt to Non-Exempt Positions have been re-classified as non-exempt if both the duties and salary tests are not met The duties tests may be met, but if salary does not meet the minimum weekly threshold employees will be re-classified as non-exempt to maintain compliance with FLSA 9
10 Overtime Must Be Paid To any non-exempt employee who works in excess of 40 hours in an established workweek At 1.5x the employee s regular rate of pay Compensatory time a.k.a. comp time is allowed only in the public sector 10
11 Definition of Workweek Fixed and regularly recurring period of 168 hours seven (7) consecutive 24- hour periods Augsburg s workweek is: Sunday Saturday 11
12 Workweek Schedules Workweek schedules may fluctuate without overtime costs as long as employees do not work more than 40 hours in the established workweek Employees may not work more than 40 hours in one week of the pay-period, and less in the other week in order to avoid paying overtime 12
13 Meals Augsburg s employee handbook states: All staff working six (6) or more hours per day are expected to take a meal break. Staff working eight (8) or more hours per day are required to take a meal break. Meal breaks are generally 30 minutes in length and are free from interruptions. 13
14 Meals A standard workday is 8.5 hours, which includes a 30 minute unpaid meal break Meal breaks are automatically deducted in Kronos Non-exempt employees are expected to take their meal break every day Supervisor approval is needed to cancel meal to pay employees who miss their meal break Employees may not work through lunch and leave after eight (8) hours of work to reduce their workday 14
15 Break/Rest Periods Short duration usually less than 20 minutes Counted as hours worked and are paid Staff may not combine or forego breaks in order to leave early 15
16 Recording Hours Staff are responsible to keep records of their time worked; managers are responsible to ensure they are accurate Timesheet looks different for non-exempt employees Space to record time in/out each day Daily entry into Kronos is strongly encouraged Generally, recorded time should equal your FTE 16
17 Accurate Records Employees are responsible for maintaining and reporting accurate records of time worked Employees may not work off the clock or volunteer time The system will round and pay to the nearest 15 minutes All vacation and sick time must be reported accurately 17
18 What Constitutes Work? Checking and responding to and/or voic from any location Making or returning calls for Augsburg business Representing Augsburg at community events for which staff are required to attend Travel may be considered work time, but in very specific circumstances 18
19 Travel NOT Involving Overnight Stay Travel from home to Augsburg Travel from home to work site Travel from work site to work site Travel from work site to work site, but stop at shop for own convenience Meal times Compensable X X (work site to work site) Non Compensable X X X (stop at shop or home) X 19
20 Travel Involving Overnight Stay Travel occurs during normal work hours during normal working days Travel occurs during normal work hours on non-working days Travel occurs outside the employee s normal working hours Free-time spent at a hotel Meals Performing work while traveling Driving a vehicle after normal work hours, carrying other employees (if driver is required to drive) Passenger riding in a vehicle after normal work hours Compensable X X X X Non Compensable X X X X 20
21 Volunteering Hourly staff must be compensated for hours worked when tasks are similar to their normal duties Exceptions: Hourly employees may be volunteers when all of the following conditions are met: Services are not similar or related to the type of work the employee is paid to perform Services are done freely and without coercion Services are performed for civic, charitable or humanitarian reasons for which no compensation is received beyond expenses or a nominal fee Example: Hourly staff who volunteer for Augsburg graduation ceremony 21
22 Conferences and Events Employees who attend conferences and events should adjust their schedules to avoid overtime when possible Advance planning is key Consider splitting the workday and offering time off during the middle of a long-event, if possible 22
23 On-Call Employees required to remain on-call on the employer s premises are working while oncall and will be paid - Engaged to Wait Employees required to remain at home oncall or allowed to leave a message where they can be reached are not working and are not paid (in most cases) Waiting to Engage 23
24 Overtime Policy All overtime must be pre-approved Overtime must be paid even if it wasn t pre-approved Overtime is paid for hours worked only Holidays, vacation and sick time do not count toward overtime 24
25 Staff Kronos Training Kathy Uecker, Payroll Specialist
26 Key Concepts: Staff Time Entry You are encouraged to record your time or time off daily. You are required to record your time accurately. Employees must Submit for Approval their timesheet by 2pm Monday afternoon the week of Pay Day. You will be locked out of your timesheet after this time. Only your manager or Payroll will be able to edit or reject (reopen) your timesheet for editing. Manager Approval deadline is 10am Tuesday morning. You will not be paid if you do not complete your timesheet.
27 Access and Logging In Login to Inside Augsburg and click on Administrative Tasks and then Time Entry. Once in the Time Entry system on the right side you ll see My Timesheet under Quick Links.
28 Entering Time Use My Current Timesheet to enter time for the current pay period. Depending on when you are accessing your timesheet you may need to use My Historical Timesheets. Things to check before entering time: Make sure you check the Time Sheet dates to ensure you are on the correct pay period. (A) If you need the Previous Timesheet, you can click on the arrow pointing left to open the Previous Pay Period Timesheet. (B) If you never open/viewed your timesheet in the active pay period it will disappear, meaning it will not appear in current or historical. Use the instructions (B) above to open/view the Previous Pay Period Timesheet. B A
29 If you have more than one position, go to the position column and click on the magnifying glass. This will bring up any positions assigned to you. Click on the flag to select the appropriate position.
30 Enter your hours worked in the From (start time) and To (end time) fields. This will give you a Raw Total of hours. Raw Total is before the ½ hour Meal Deduct is taken. Calc. Total is the number of hours paid after the ½ hour Meal Deduct is taken. Make sure you are putting in the am and pm when entering From and To (i.e.: 8a or 8:00a, 3p or 3:00pm). Make sure you save your timesheet each time you complete your entries. Your Calc. Total will populate once you click the Save.
31 Separate Lines should be used for each work instance in a day. Split shifts Non-work related appointments Multiple Positions To add a line, click on the circle with the + sign. To subtract a line, click on the X to remove the line.
32 Adding Time off to your timesheet: Select the Time Off from the Time Off column using the drop down arrow or the magnifying glass. If you have never used a code previously you will need to initiate it through the magnifying glass. If requested through the system, it will auto populate the timesheet. Enter the number of time off hours into the Raw Total column. Do NOT enter your From and To times on time off days. Put in the Raw Total hours ONLY. If From and To times are added with time off it will count as time worked. For Time Off, Raw and Calc. Total hours will match.
33 Submitting Your Time Make sure all entries are accurate. Watch out for double entries of time off. Watch out for am and pm time entry errors. Make sure Total Hours (Calc. Total) totals your authorized hours. Unless otherwise authorized. When you are ready to submit your timesheet for approval, click the Submit For Approval button on the upper right toolbar.
34 Time Entry Errors If you submit a Timesheet in error and need it reopened for further editing, please payroll@augsburg.edu. You will be required to Submit For Approval again. Never adjust hours in the current pay period to account for a previous pay period error. Please notify Payroll if this occurs.
35 Questions? Thank you! 35
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