New Rules for Overtime: How Technology Has Changed On the Job Presented by Jodie-Beth Galos, Esq.
Do you know where your employees are?
FLSA Created when the U.S. was a manufacturing nation Today s work is more intellectual. FLSA operates with the dated 9-to-5 concept.
How does workplace flexibility impact old payment obligations? FLSA Covered employees must be paid time-anda-half overtime pay. Hours are not limited as long as the employee is over 16.
State law may impact these payments. 2 classes of employees 1. Nonexempt 2. Exempt Pay Requirements
Exempt vs. Nonexempt To protect less-educated workers Exempt employees were more likely to be educated.
3 Requirements 1. How much is the employee paid? 2. How is the employee paid? 3. What is the nature of the employee s work?
3 Requirements The burden of proof is on the employer. The same title does not mean the same exemption status.
De minimus exception Compensable time is when one is suffered or permitted to work. It s still overtime even when the work is unauthorized. Overtime
Workweeks Each workweek stands alone. No averaging, no time off in a different week
Workweeks FLSA does not guarantee hours or schedules. Failure to pay can lead to years of back pay and attorneys fees.
DOL Timekeeping App Allows employees to create their own time records Records become important when allegations against an employer come up. There is a potential for mistakes and time theft.
Workweeks How do you track work hours outside the traditional office walls? Time spent emailing can add up. There is a risk with all nonexempt employees.
rincipal Activity All duties that constitute an integral part of the employee s job If an employee works remotely before or after a shift, that is compensable. An employee s commute can become compensable if a principal activity was performed before leaving.
ours Evaluate how many hours nonexempt employees were working. Recognize old policies don t fit the 21st-century workplace.
Telecommuting Telecommuting has increased in recent years. 55% of employers offer telework options. FLSA covers work performed off-site.
Telecommuting Law presumes employers can monitor hours worked. Most suits allege employers failed to monitor hours worked. 24/7 businesses means unconventional hours worked.
Sleeping Less than 24 hours is paid time even if sleeping is allowed. More than 24 hours working may exclude sleeping.
Breaks Breaks of 20 minutes or less must be paid. Meal periods 30 minutes or longer do not need to be paid. Employers don t have to count mealtime even if employees must be available.
Training doesn t count if... 1. It s outside of work hours. 2. It s voluntary. 3. It s not job-related. 4. The employee does no other work. Training
Engaged to Wait Compensable time that s controlled by the employer Same rules for those who work off-site
Waiting to Be Engaged 1. Relieved from duty 2. Long enough to use time for self 3. Told in advance they can leave 4. Told when to return
Travel Time Home-to-work travel isn t work time. Working during a commute is work time. Travel time counts if it is between arrival and departure.
Travel Time Travel out of town is work time. Compensable time must cross the normal workday. Travel time outside of regular hours is noncompensable.
Pay Deductions Exempt employees receive full salary for any week they perform work. Pay is not required for weeks where no work was performed.
When Deductions Are Allowed 1. Absent for personal reasons 2. Absent due to sickness or disability 3. Offset jury fees 4. Penalties for safety rule violations 5. Unpaid suspensions 6. Unworked days of initial or last week 7. Unpaid FMLA leave
Reimburse inadvertent deductions. Improper deductions can change exemption status. Clearly communicate your pay policy. Deductions
Divide compensation by hours worked. Convert salary to hourly rate. Overtime
2 Compensation Strategies 1. Fluctuating workweek 2. Belo contract
Any money received is part of straight time rate of pay. Allocate bonuses on a pro rata basis during that period. Many employers increase regular rates. Overtime Calculation
Avoid Unauthorized Overtime Have a policy that defines company expectations. Address use of mobile devices and remote access. Require reporting of all work outside regular hours.
Avoid Unauthorized Overtime Set rules on how off-the-clock time should be used. Be aware of how supervisors encourage being available.
ecord Keeping Audit employees time sheets. Require employees to certify accuracy. Have a formal complaint system. Define telecommuting workdays.
Do an internal audit. Is the overtime necessary? You may discipline for policy violations. Evaluate Overtime
Training Review policies at hire and periodically after. Communicate work hour expectations.
Conclusion How we determine work hours in a constantly connected world What pay obligations are Wage-and-hour rules for nontraditional work Deduction rules Calculating overtime
Welcome to New Rules for Overtime: How Technology Has Changed On the Job Q&A With Jodie-Beth Galos, Esq.
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