Non-exempt Employee: an employee designated by the County to be covered by the provisions of the Fair Labor Standards. FLSA code is N.

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1 Definitions Regular Work Schedule: an employee s specific work days, work weeks, work periods, and work shifts, established on a regular, ongoing basis as determined by the County. Pay Period: begins Tuesday 12:01am and ends two weeks later Tuesday 12:00 am. The pay period will not change with the adoption of a 9-80 schedule. The pay date will also remain the same, every other Wednesday (9 days after the end of the pay period). Work Week: A regular 7 day work period. (All current non-exempt employees have a work week that begins Tuesday 12:01am and ends one week later on Tuesday 12:00 am.) Exempt Employee: an employee who has been designated by the County as exempt from the provisions of the Fair Labor Standards Act. FLSA codes of A, E, P, N7K and N7J. Non-exempt Employee: an employee designated by the County to be covered by the provisions of the Fair Labor Standards. FLSA code is N. (Statutory and non-statutory overtime as it applies to weekly OT): Statutory Overtime (Overtime required by law) Statutory Overtime for a non-exempt employee is defined as all hours worked in excess of 40 in a 7 day work week. For example, an employee s work week begins on Tuesday 12:01am (1 minute after midnight) and ends one week later on Tuesday 12:00 am (midnight). The employee works 8 hours a day: Tues, Wed, Thurs, Friday and Monday and also works an additional 8 hours on Saturday. This employee is entitled to 8 hours of statutory overtime. Statutory overtime may not be waived, as it is required by law. T W TH F SA SU M OT 8 40 hrs Reg and 8 hrs Stat-OT Non-Statutory Overtime (MOU or contractual overtime) Non-Statutory Overtime for non-exempt employees is defined as all hours worked in excess of 40 hours in pay status in a 7 day work week. (Pay status hours include time worked, vacation, sick leave, comp time used, holiday benefit, jury duty, etc ). The same employee used in the previous example works 8 hours a day: Tues, Wed, Thurs, and uses 8 hours vacation on Friday and Monday, but also works 8 hours on Saturday. This employee is not entitled to statutory overtime, but is entitled to 8 hours of nonstatutory overtime. Non-statutory overtime is not required by law and may be waived with consent of the Union. T W TH F SA SU M V 8OT 8V 40 hrs Reg and 8 hrs Non-Stat OT 9-80 Background Information.doc Page 1 of 5 updated 6/26/08

2 Overtime Summary Overtime - Non-Exempt Employee Overtime for the non-exempt employee is divided into statutory overtime and nonstatutory overtime. Non-exempt employees earn overtime for all hours in excess of the normal full-time daily work schedule, all hour in excess of 40 in a regular 7 day work period, or all hours in excess 80 in a pay period. Overtime - Exempt Employee who earns statutory or contractual overtime Overtime for exempt employees is defined as all hours in excess of the normal full-time daily work schedule or in excess of 80 per pay period. Work Week: A regular 7 day work period. All current non-exempt employees have a work week that begins Tuesday 12:01am and ends a week later Tuesday 12:00 am Work Week: A 9-80 work week changes at a specific time on a specific day. Doing so we can take the 8 hour day and apply 4 hours to one work week and 4 hours to another. Example of Work Week for a 9-80 pay rule where the work week begins Monday 12pm. Week 1/ of a new 9/80 Monday 12pm M beginning at 12P> T W TH F SA SU M before 12pm /off / Week 2/ of a new 9/80 Monday 12pm M beginning at 12P> T W TH F SA SU M before 12pm / off/ Class Exercise 9-80 work week 9-80 Background Information.doc Page 2 of 5 updated 6/26/08

3 The major challenge we face during the transition period is the overlapping when a change of work week is made. (1) The work week is changing but the pay period is not and (2) During the transition we must calculate overtime for the old work week that ends at 12 midnight on Monday (3) And calculate overtime for the new work week which bounces back and begins in the old pay period. (4) And compute the amount of paid leaves to be applied during overlapping work weeks. In the example, the employee s 8 hour day is the first Monday of the new pay period. Assuming the employee was worked Mon-Fri 8a-5p. But, he then has 4 hours (1p to 5p) on Monday towards his statutory overtime limit for the first week of the new 9/80 work week, which begins at 12 noon on Monday in the old pay period. He will be paid all 8 hours worked on Monday in the previous pay period. TimeSaver looks back into the previous pay period to Monday at noon because the 9/80 pay rule re-defines the work week to do so. We now owe the employee 4 hours of halftime due to the statutory overtime Week 2 of previous pay period (M-F, 8 to 5) prior to 9/80 Week 1 of first pay period of the new 9/80 work schedule T W TH F SA SU M M T W TH F SA SU M Wk 2: 40 hrs / / Wk 1: 8a 12p,. 12p-1p lunch 1p-5p Week 2 of first pay period of the new 9/80 M T W TH F SA SU M / Off / Wk 2: However, if agreed, the employee who voluntarily requests a 9/80 schedule could use a minimum of 4 hours of leave (vacation or comp time) during that first week of the new 9/80. This would change the status of the overtime from statutory to non-statutory. The employee can then waive non-statutory overtime; with approval from the Union. If the employer agrees to the schedule, but the county can not accommodate the time-off request, statutory overtime must be paid Background Information.doc Page 3 of 5 updated 6/26/08

4 Practice Transition from 5-8 s M-F 8a-12p 1p-5p to 9-80 Mon 12p 8/Off Practice Transition from 5-8 s M-F 8a-12p 1p-5p to 9-80 Fri 12p Off/8 Practice Transition from 5-8 s M-F 8a-12p 1p-5p to 9-80 Wed 12p 8/Off 9-80 Background Information.doc Page 4 of 5 updated 6/26/08

5 Practice Transition from 4-10 s M-TH 7a-12p 1230p-530p to 9-80 Fri 12p Off/ Background Information.doc Page 5 of 5 updated 6/26/08