Time Entry Training for Newly Nonexempt Positions
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1 Time Entry Training for Newly Nonexempt Positions November 2016 Training Facilitators: Doug Anderson, Payroll Manager Andrea Little, University Human Resources Lisa Negus, University Human Resources Ruth Carlton-Appleton, University Human Resources
2 Objectives Develop an understanding of the requirements for a nonexempt employee around time Develop a working knowledge of what is compensable time and the resources available to assist in determining compensable time Understand your responsibilities as a time entry person in your department Understand and interpret the Nonexempt Wage and Hour Report 2
3 Newly Nonexempt Employees Employee Type Impact Contract (K base) Will require individual analysis of those employees below the new salary threshold of $47,476 ($913 per/week). Faculty In general, faculty with the primary duty of teaching (Adjunct Instructor, Adjunct Assistant Professor, Adjunct Associate Professor, Adjunct Professor, Assistant Professor, Associate Professor, Professor, Lecturer, Senior Lecturer, Clinician, and Senior Clinician) and those otherwise exempt will remain exempt and not be eligible for overtime. Other faculty positions/titles will require individual analysis. Graduate students not on Same as Undergraduate Student Employees assistantship but working as a student employee Graduate Teaching No change. In general, these individuals are considered exempt under the teaching exemption. Assistantships Graduate Students on No change. In general, they are not considered employees. They do not have to track their Assistantship (Research or hours worked and are not eligible for overtime. Administrative) Merit (AFSCME and S&C) No change. Postdoctoral Scholars (excluding Vet Med residents and interns) Professional & Scientific Undergraduate Student Employees Postdoctoral Scholars that do not meet the new weekly salary threshold of $913 per/week likely because of their fractional appointment are non-exempt and will be required to track their hours. D-base Residents and Interns are exempt employees and are not required to track hours worked. Group that will see the biggest change. In general, those falling under the new salary threshold and not qualified as an exempt employee will be non-exempt and will be required to track hours worked and may be eligible for overtime. No change. Cannot work more than 20 hours per week during the semester. 3
4 FLSA Employment Categories The FLSA categorizes all workers either as covered ( nonexempt ) or exempted ( exempt ) from the overtime provisions outlined by the Act. Nonexempt Are considered covered by the overtime provisions of FLSA; Are paid an hourly rate, or wage, for every hour worked; Perform work that does not meet the FLSA exemption tests; and Earn compensatory time off (when allowed by the supervisor) or overtime pay for each hour worked in excess of 40 hours per workweek. Exempt Are considered exempt from the overtime provisions of the FLSA; Are paid an annualized amount, or salary, for performing the whole job, not for every hour worked; Are not required to track, record, earn or receive overtime compensation; and Must be paid a regular salary of at least $913 per workweek ($47,476 per year), with few exceptions such as teachers, physicians, and attorneys. 4
5 Timekeeping Requirements Under The Law Timekeeping components ISU s Work Week Policy Compensable time (work time) Overtime compensation Recordkeeping obligations Responsibilities How will you know who should track time? ereport PAYRL- Nonexempt Salary Roster Report 5
6 Work Week Policy Defined by the University as 168 consecutive hours from - 12:01 am Sunday and ending the following Saturday at 12:00 midnight 6
7 Compensable Time Time Worked = Time Paid The FLSA requires payment to nonexempt employees for any work that the employee is suffered or permitted to work The FLSA considers work that is Suffered or Permitted to be: any work the employer knows about or could have found out about 7
8 Compensable Time Compensable All hours worked for the benefit of ISU Short rest break periods less than 20 minutes Time spent waiting or downtime during the workday Hours worked beyond normal schedule Not Compensable Commute to work Lunch breaks of 30 minutes or more, as long as no work is performed 8
9 Overtime Compensation Any worked hours over 40 in a Work Week Doesn t include any leave time (vacation, sick leave, comp time, etc.) or holidays Overtime can be accrued as compensatory (comp) time or paid in cash (overtime compensation) in the employee s next regularly scheduled paycheck Overtime is calculated at time and one-half 1.5 x hourly rate 9
10 Record Keeping Nonexempt Wage and Hour Reports Leave Records Compensatory Time (Comp Time) Acknowledgement Form PAYRL- Nonexempt Salary Roster Report 10
11 Record Keeping Electronic signatures on Nonexempt Wage and Hour Reports Appropriate documentation of changes to the Nonexempt Wage and Hour Report Appropriate document storage Appropriate electronic file type 11
12 Role Key Responsibilities Nonexempt Employee Enter time, hours worked on Nonexempt Wage and Hour Report (daily/weekly) or through a university approved timekeeping system Submit Nonexempt Wage and Hour Report monthly or hours worked through university approved system Request approval from supervisor to work OT in advance of working overtime Sign Compensatory Time Acknowledgement Form Manager or Supervisor Communicate work load and OT expectations to employee Respond to requests by the employee to work OT Monitor employee hours (daily/weekly) Address worktime, workload, or OT issue promptly Approve Nonexempt Wage Hour Reports Submit Nonexempt Wage and Hour Report to time entry staff (or sign off on university approved system) Initiate Compensatory Time Acknowledgement Form for processing at the department if wishing to have employee consider Time Entry Person (e.g., department, payroll, admin) Collect Nonexempt Wage and Hour Reports Monitor exceptions Work with supervisors to correct error or problems Enter data for payroll processing Monitor PAYRL- Non-exempt Salary Roster report to ensure receiving Nonexempt Wage Hour Report from all employees as identified on the report Maintain the official records for compliance with the University s standard and record retention schedule 12
13 Let s try it out Functionality of Nonexempt Wage and Hour Report Carryforward hours Leave tracking for 40 hour/week Overtime Holiday pay Fractional employees 13
14 Full-time Example 14
15 Carryforward Hours How does the employee reflect carryforward hours on their Nonexempt Wage and Hour Report? These are hours recorded on a previous Report that relate to the first week of the current pay period. 15
16 Leave Tracking for 40 Hours Per Week Leave should not be recorded that would take the employee above 40 hours in a week. (The form will highlight these exceptions.) Leave on this example should be reduced to 6 hours of vacation. 16
17 Overtime/Comp Time The Nonexempt Wage and Hour Report takes the comp time election and converts the overtime to time and one-half to bank as comp time. 17
18 Holiday Pay If holiday hours take the employee above 40 hours, the employee will get straight time (hour for hour, not time and one-half) for the hours the holiday takes them above
19 Fractional Employees (less than 40 hours) Fractional employees get straight pay, hour for hour, for time above their fraction. In next example, 3/5 employee who works 30 hours in a week would receive 6 hours of straight pay added to next month s pay. Fractional employees get their fraction for every holiday, scheduled or not. In next example, 3/5 time employee would receive 4.8 hours. 19
20 Fractional Example 20
21 Cutoffs for Entering Leave and Exception Payments into ADIN/HT System The time entry person is responsible for establishing and communicating to supervisors the INTERNAL cutoff date for receipt of Nonexempt Wage and Hour Reports, taking into consideration time needed to adequately review. Institutional Cutoffs for Entry: 9 th Day of Month; unless weekend then following Monday = Cutoff for entry of leave taken 17 th Day of Month; unless weekend then following Monday = Cutoff for entry of exception pay in order to meet payroll deadline 21
22 Recording Overtime from the Nonexempt Wage and Hour Report into ADIN/HT System Overtime should be paid out at the end of the next month s paycheck (should not be paid out on a mid-month paycheck). 22
23 Recording Straight Pay Payouts from the Nonexempt Wage and Hour Report into ADIN/HT Straight time should be paid out at the end of the next month s paycheck (should not be paid out on a mid-month paycheck). 23
24 Reasons to Payout Comp Time Comp time should be paid out: on June 30 if not used if the balance goes above 80 with a transfer to another department with a change to an exempt position upon resignation 24
25 Recording Comp Time Payout into ADIN/HT System 25
26 Recording Leave Time from the Nonexempt Wage and Hour Report into ADIN / HT System 26
27 In Summary... Identify nonexempt employees and ensure Nonexempt Wage and Hour Reports are received Communicate with supervisors to correct Nonexempt Wage and Hour Report problems/errors Communicate internal cutoff dates for Nonexempt Wage and Hourly Reports with supervisors and meet University deadlines for entry into ADIN/HT System Retain records per University policy 27
28 Next Steps/Action Items If you have not, sign up for FLSA online training for new nonexempt employees and supervisors - Visit the FLSA website/read Q&A - Contact any of Time Entry training facilitators with questions 28
29 Who to Contact Questions on what is compensable time: University Human Resources, Your UHR Liaison Questions on time entry: Sue Ackerman, Payroll,
30 Questions and Comments 30
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