Fair Labor Standards Act (FLSA) Overtime Law 2016 Mandated by Presidential Executive Order and DOL Law Change (Section 7) Guide for Implementation at Troy University PLEASE NOTE: The policies and forms used in this guide are subject to change. Changes will be updated to this document as they occur.
Definitions Index Exempt Employees Not authorized to be paid overtime pay, regardless of hours worked Non-Exempt Employees Must be paid 1.5 times their hourly rate of pay for all hours worked over 40 in a designated work week FLSA -Fair Labor Standards Act (federal law) that establishes criteria for classifying positions as exempt or non-exempt. Comp Time Compensating employees for overtime worked by giving them 1.5 hours credit for any hours worked over 40 in a designated work week, to be used at a later date Flex Adjusting hours within a workweek to avoid working overtime Key Implications of New FLSA Law: Effective December 1, 2016 Some employees previously considered exempt will be reclassified as non-exempt based on criteria provided by the Department of Labor This transition is not a negative reflection of employees position, but serves as a way to benefit employees by ensuring they are appropriately compensated for overtime This law was designed to adjust the salary threshold for determining overtime pay (over 40 hours per week). Previously, the threshold was $23,660 per year. The threshold has been increased to $47, 476 per year. This means that employees earning less than $47,476 should be considered non-exempt, which means they are not exempt from receiving overtime pay. There are exceptions to this rule, which relate to the type of position held If you are already considered a non-exempt, or hourly-paid employee, this change will not affect you Employees not impacted by new law: Teachers, Coaches, Certain academic administrative personnel who make as much as entry level teachers ($42,000) Implementation at Troy University Overtime will be used by Troy only when absolutely neccessary and approved by proper authority level Overtime pay will be 1.5 times the hourly rate for all hours over 40 in a work week Employees will not be allowed to work comp time Flex time will be permitted as long as it equals 40 hours within the work week (Sunday - Saturday) and is approved by the supervisor Student and part-time workers not impacted Monthly employees impacted will be changed from exempt to non-exempt
Impacted employees will... Implementation at Troy University, continued Still get their same annual leave and sick leave hours Still earn the same rate of pay Still be paid monthly Must enter hours for tracking purposes only Time Approval Supervisors will have to approve hours for these impacted employees Overtime forms must be submitted and approved prior to any employee being permitted to work overtime Overtime must be approved by the Associate Vice Chancellor/AD, Dean level (or equivalent), or above with regular reports to their Senior Vice Chancellors on overtime approval Minimizing Overtime Supervisors will be expected to make reasonable alternative decisions, if possible, to avoid overtime Responsibility to minimize overtime is that of both employee and supervisor Critical mission needs are the driving factor Working from Home On call at work is work time; at home it is non-work time, unless the employee actually does work Being called back to work or called-on to work after going home is work time but not the travel time from home to work and back If work is required to be performed, it is considered work hours If work benefits the University, it is considered work hours. If it benefits the employee, it is not considered work hours
Travel Time - How to Determine Work Time Travel Time Travel time to and from work is not considered work time If the employee is called back to work after having left the workplace, it is considered work time Time spent traveling as part of principal activity during normal work day is considered work Travel that keeps an employee overnight is considered work if it is approved by the University as work travel Travel time aboard a plane, train, bus, or personal vehicle does not count as work unless the employee is the driver and approved to use their personal vehicle Any travel time that cuts across the normal working hours of the employee will be counted as work hours, even when it is on a non-working day (weekend, holiday, etc.) EXAMPLE If an employee normally works M-F from 8-5, and is traveling during those hours on Sat. and/or Sun., those hours would be considered work hours. The same is true for time doing work at the travel location (seminar, workshop, presentation, etc.) Any work that the employee is required to perform is considered working hours. Social/sleep time would not be considered work hours. Travel time outside normally scheduled work hours as a passenger on an airplane, train, bus, boat or automobile will not count as work hours Meal times, social time, sleep time, and normal driving time to-and-from work on a normal work day must be deducted from travel hours Any work required by the University is considered work hours. If it benefits the employee, it is not considered work hours. Additional Implementation Factors Working 12 hours in one day is not overtime unless the employee works more than 40 hours in a work week Working on holidays does not justify additional pay unless employee works more than 40 hours in a work week Working on an Administrative day does not get the employee additional pay since they have not worked more than 40 hours in the work week, and they are getting paid for the entire week anyway
Recording Work Employees will enter their workhours weekly on the Monthly Employee Time Sheet found on the Troy HR website under Forms. This is an Echosign form. ALL non-exempt monthly-paid employees MUST complete weekly timesheets, regardless if overtime was worked or not. Once the employee presses submit, the form goes to the employee s supervisor for approval and will be filed for record When supervisor disapproves, the employee is notified (like sick leave) that hours are not entered correctly, and to resubmit the form Employees and supervisors should save a copy of their Time Sheets in the event overtime pay is required, or if audited by the DOL. Requesting Overtime Approval When employees are asked to work more than 40 hours in a workweek (Sunday thru Saturday), an Overtime Approval Request Form must be completed for that week and approved prior to working the overtime Employees must obtain approval for overtime before working over 40 workhours in a week The Overtime Approval Request Form should be filed by the employee, one copy sent to the supervisor and one copy sent to Human Resources. This form will be used to request payment for overtime pay. Requesting Overtime Payment Employees will submit the following package if they worked more than 40 hours in any workweek: Copy of any Monthly Employee Weekly Time Sheet where more than 40 hours are to be paid as regular pay or as overtime pay Overtime Approval Request Form for that week Monthly Employee Supplemental Pay Form for the total extra hours worked for that week Critical Documents Monthly Employee Time Sheet Overtime Approval Request Form Monthly Employee Supplemental Pay Form All forms will be located on the Human Resources website
EXAMPLE OVERTIME APPROVAL REQUEST FORM EMPLOYEE S NAME (Last) ( First) EMPLOYEE S ID# EMPLOYEES S TITLE EMPLOYEE S DEPARTMENT NUMBER OF OVERTIME HOURS REQUESTED DATE(S) OVERTIME WILL BE WORKED ESTIMATED DOLLAR AMOUNT OVERTIME WILL COST PURPOSE/JUSTIFICATION FOR THE OVERTIME REQUESTED SUPERVISOR S SIGNATURE DATE SENIOR LEVEL SUPERVISOR S SIGNATURE DATE (If Applicable) ASSOC. VICE CHANCELLOR, DEAN, ASSOC. AD (OR EQIVALENT LEVEL OR ABOVE) DATE (SEND A COPY OF COMPLETED FORM TO HUMAN RESOURCES)
EXAMPLE Monthly Employees Weekly Time Sheet 000000190 Jack Stack ID # John Doe (SAMPLE 1) Name Analyst of FLSA Title jdoe1222@troy.edu Email Supervisor 334-xxx-xxxx Supervisor Phone Number jstack4444@troy.edu Supervisor Email Week Ending Work Week Day Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 12/10/16 Regular Work Sick Vacation Other Other Type Total 12/4/16 0 0 12/5/16 4 2 2 8 12/6/16 0 8 8 12/7/16 11 11 12/8/16 5 5 12/9/16 4 4 Add l Reglular 12/10/16 4 4 4 Worked > 40 28 2 0 2 40 4 0 We certify the hours recorded on this time sheet are correct. Employee Signature Supervisor Signature In this example, the employee would NOT get paid overtime. This employee only had 28 WORKING hours.
EXAMPLE Monthly Employees Weekly Time Sheet 000000190 Jack Stack ID # John Doe (SAMPLE 2) Name Analyst of FLSA Title jdoe1222@troy.edu Email Supervisor 334-xxx-xxxx Supervisor Phone Number jstack4444@troy.edu Supervisor Email Week Ending Work Week Day Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 12/10/16 Regular Work Sick Vacation Other Other Type Total 12/4/16 0 0 12/5/16 8 8 12/6/16 8 8 12/7/16 12 12 12/8/16 9 9 Add l Reglular 12/9/16 3 3 5 12/10/16 0 0 4 Worked > 40 40 0 0 0 40 0 9 We certify the hours recorded on this time sheet are correct. Employee Signature In this example, the employee WOULD get paid for overtime hours. They had 49 working hours and would get paid for 9 hours of overtime.
EXAMPLE Monthly Employees Supplemental Pay Form (for pay over a regular 40 hour week) John Doe 000000190 Name ID # Analyst of FLSA Title jdoe1222@troy.edu Info Tech Department 334-xxx-xxxx E-mail Contact Phone Number 12/4/16-12/10/16 113-xxxxx-xxxxx-030 For Period GL # Jack Stack Supervisor 334-xxx-xxxx Supervisor Phone Number Regular Hourly Rate of Pay Overtime Hourly Rate of Pay (1.5 x Regular Rate) Day $ 18.00 Regular Overtime $ 27.00 Description of Work Saturday 12/10/2016 4.00 Saturday Worked 4 Reg. Total Approved 4.00 0.00 Total Regular Total Overtime Rate Amount 4.00 $ 18.00 $ 72.00 0.00 $ 27.00 $ 0.00 Total Amount of Requested Supplemental Pay $ 72.00 Employee Signature Supervisor Signature HR Signature
EXAMPLE Monthly Employees Supplemental Pay Form (for pay over a regular 40 hour week) John Doe 000000190 Name ID # Analyst of FLSA Title jdoe1222@troy.edu Info Tech Department 334-xxx-xxxx E-mail Contact Phone Number 12/4/16-12/10/16 113-xxxxx-xxxxx-030 For Period GL # Jack Stack Supervisor 334-xxx-xxxx Supervisor Phone Number Regular Hourly Rate of Pay Overtime Hourly Rate of Pay (1.5 x Regular Rate) Day $ 18.00 Regular Overtime $ 27.00 Description of Work Friday 12/9/2016 5.00 Doing IT patch upgrade to avoid disrupted services during week Saturday 12/10/2016 4.00 Reloading software in new server to get Blackboard operational Total Approved 0.00 9.00 Total Regular Total Overtime Rate Amount 0.00 $ 18.00 $ 0.00 9.00 $ 27.00 $ 243.00 Total Amount of Requested Supplemental Pay $ 243.00 Employee Signature Supervisor Signature HR Signature
How to calculate overtime for both non-exempt bi-weekly employees and non-exempt monthly-paid employees when they also teach as an Adjunct EXAMPLE 1 - Classified/Hourly Non-exempt Employee - Jane Doe Taught an undergraduate online course with 22 students at $125 her headcount = $2,750 Complete the contract payment as follows: 1. Mark at the top of the contract in BOLD letters: Class. NE - Hourly Rate Primary =$12.50 2. Beside the dollar amount of $2,750, enter the overtime calculation at 1.5 times the employee s normal hourly rate. Example: $12.50 per hour regular pay Calculation would be as follows: $2,750 divided by $18.75 overtime pay ($12.50 x 1.5) = 146.6666 hours Enter beside contract payment amount (146.6666 hours x $12.50 x 1.5) EXAMPLE 1 - Monthy/Salaried Non-exempt Employee - John Doe Taught an undergraduate in-class (3 semester hours) course = $3,000 Complete the contract payment as follows: 1. Mark at the top of the contract in BOLD letters: Monthly NE - Hourly Rate Primary = $21.15 2. Beside the dollar amount of $3,000, enter the overtime calculation at 1.5 times the employee s normal hourly rate. Example: $21.15 per hour regular pay Calculation would be as follows: $3,000 divided by $31.7250 overtime pay ($21.15 x 1.5) = 94.5626 hours Enter beside contract payment amount (94.5626 hours x $21.15 x 1.5)
AOP-1-19-10-01 - TROY UNIVERSITY ADJUNCT FACULTY/FULL-TIME FACULTY OVERLOAD CONTRACT (Revised 9/18/13) 1/12/2017 : MONTHLY NE Hourly Rate Primary = $21.15 John Doe Name: 600 University Avenue Address: 113-xxxxxxx-xxxxx-030 GL Account #: Alabama Teacher Retirement Status: 1234567 Retired Member Current Member ID#: Non-Member Inactive Member 1. You are hereby appointed as an adjunct faculty or full-time overload faculty member for the following course section(s): Course Section(s) Grad: Undergrad: On-Line On-Site Other Grad: Undergrad: On-Line On-Site Other Grad: Undergrad: On-Line On-Site Other Semester/Term: T01 RMI-3346-TXAA X X Spring 2017 Location:. Total for contract (see Pay Calculation below): $ 3,000 94.5626 hours x $21.15 x 1.5 You will be eligible for payment of the above course section(s), payable upon completion of assignment. You will receive your payment for teaching based on the current Academic Operating Procedure (AOP 8-8-07-01) and the pay date established by Human Resources. This contract terminates on. 5/4/2017 2. If, in the judgment of University administrators, a sufficient number of students do not enroll in the course section(s) covered by this contract to warrant offering this/these course section(s), said contract shall be null and void. 3. Your salary will be subject to federal and state income tax withholding and federal social security. I certify that my state of legal residence is. I certify that the substantive work of this contract will be performed and therefore taxable in the state of. 4. It is expected of the adjunct faculty to perform institutional duties as outlined in the appropriate faculty publication. 5. The signed contract signifies authorization to travel on behalf of Troy University with travel not to exceed $ All travel expenses should be submitted for reimbursement in accordance with the travel policies of Troy University (http://trojan.troy.edu/epolicy/). All air travel MUST be booked through the All Seasons Travel (866-390-7208 or 334-239-4373). 6. Payment Level Determination: Masters/Plus X Doctorate 1-8 Course Section(s) Taught 9 or More Course Sections Taught 7. Other conditions of this contract are as follows (if appropriate): 8. To signify your acceptance of this contract, and your understanding that this contract does not create a right to reemployment in any subsequent term, please sign below and return to your dean, department chair or appropriate designee. PAY CALCULATION Accepted: Faculty Appointee () (1) = $ RMI-3346-TXAA 3,000 Approved: (2) = $ Dean/Director/Department Chair () (3) = $ (4) = $ (5) = $ Total = $ 3,000 NOTE: DIRECT DEPOSIT PAYMENTS WILL BE ISSUED IN ACCORDANCE WITH THE ADJUNCT FACULTY/FULL- TIME FACULTY OVERLOAD PAYROLL CALENDAR http://trojan.troy.edu/employees/controllers-office/payroll.html APPROVED BY: ACADEMIC STEERING COMMITTEE, JAN. 19, 2010 (REVISED 9-18-13) OPR: DR. LEE VARDAMAN
Frequently Asked Questions 1. Can you change an employees work schedule? For example, right now it s M-F 8-5. Can we change their normal schedule to Tue-Sat 9am-6pm? Yes. If you need to adjust employees work schedule for the needs of the business, you CAN change their working hours in order to avoid paying overtime. 2. What if you are scheduled for overtime and the task you are performing goes over what you thought it would, what should you do? We understand that sometimes situations are out of our control, and for the benefit of the university we need to work longer than we thought. In these situations, send a quick email/text/or call you supervisor and get an approval (if you can), then follow up with the appropriate documentation after the fact. 3. Will we be individually notified or can we call and ask if we are non-exempt? Yes, we will notify employees who will remain exempt, and you can always call and ask HR. 4. When do we start recording and submitting our time? The first time sheet will be due at the end of the first week of December. 5. Where to I find the weekly time sheet, overtime approval form, and monthly employee supplemental pay form? All of these forms are located on the HR website. 6. What about employees who have second positions? How is overtime calculated? For any hours worked over 40 hours in a work week, the employee will receive 1.5 times their hourly rate for all the work performed in the secondary position. The Human Resources Department is here to answer any questions or discuss any concerns you may have about this process. Please feel free to reach out to us anytime. Thank you for working with us while we implement these new processes that keep us compliant to federal law. Troy Campus HR Department Phone: (334) 670-3710 Location: 107 Wright Hall