FLSA FAIR LABOR STANDARDS ACT

1. FLSA FAIR LABOR STANDARDS ACT Federal law that governs: • Minimum wage (now $6.55 per hour) • Recordkeeping responsibilities • Youth employment • Overtime pay 40 hours in a workweek

2. Are all workers covered under the FLSA? • NO. Elected officials, appointees (those who sit on boards and commissions), some volunteers, and others.

3. What the FLSA does NOT do • No requirement to pay OT for work on: • Holidays • Weekends • Nights • Regular Days of Rest • No requirement to provide: • Vacation Pay • Sick Pay • Meal Breaks • Rest Breaks • Severance Pay • No limit on # of hours worked in a week

4. Overtime Calculation • Employer should define a 7-day Work Period • Example -- Monday 12:00 a.m. to Sunday 11:59 p.m. • 40+ hours actually worked = OT x 1.5 • M thru Th = 40 hours worked • F = 8 hours of holiday pay • TOTAL 48 hours—ALL at straight time • Govt’l employees—OT Pay or Comp Time • (At employer’s discretion)

5. Fair Labor Standards Act“FLSA” • Some employees are exempt from FLSA • “Blue Collar” workers usually NOT exempt • “White Collar” workers generally ARE exempt • “White Collar” section amended in 2004--Outcome? If workers don’t meet the tests for the exemption, they must be paid OT. • Employees CANNOT waive their FLSA rights.

6. BASIC RULE: Everyone is HOURLY except for exceptions. What Does That Mean? • HOURLY--If non-exempt and the employee works more than 40 hours a week, OT is required. • SALARY--If exempt, the employee is SALARY and OT pay is NOT required.

7. An employee may be exempt IF: • Paid more than $455 per week; AND • Fits into 1 of 6 categories: • Executive; • Administrative; • Professional; • Computer Personnel; • Highly Compensated; or • Outside Salesman.

8. “EXECUTIVE” EMPLOYEES The Employee MUST: • Be paid a salary of at least $455/week; AND • Primary duty is to manage the business or a recognized department, division or subdivision; AND • Customarily and regularly supervises and directs the work of 2 or more full-time employees; AND • Has the authority to hire or fire other employees or is able to make these recommendations and that recommendation is given a “particular weight”.--(new)

9. DEFINITIONS: “Primary Duty”– the main, major or most important job duty. “Manage”– manages employees, projects, and processes. • Selecting employees; directing their work; disciplining employees; determining budgets; handling complaints; evaluations; etc. “Particular Weight”– To determine, ask: • Is it part of their job duties? • Is their opinion frequently relied upon?

10. ADMINSTRATIVE EMPLOYEES The Employee MUST: • Be paid a salary of at least $455/week; AND • Have duties that consist of office or non-manual work “directly related to management” and not part of the production process; AND • Exercise discretion and independent judgment with respect to “matters of significance”. • Examples—insurance adjusters, probation officers, loan originators

11. Important to Remember! Just because an employee works in an office, they are not automatically exempt!!! Not Exempt-- • Administrative Assistants • Secretaries or Bookkeepers • Other Office Staff That Do Not Meet the Definition of “Administrative”

12. IMPORTANT THINGS TO REMEMBER: • Applies to PART-TIME employees regardless of their perceived “status”. • His job duties may make him an exempt employee, but he only works part-time. His “salary” is less than $455 per week. IS HE STILL EXEMPT? NO!!!!!

13. Employees cannot waive their FLSA rights. • Why would the employee want to do this? • Belittles the importance of their job. • Perception of “having finally made it”. • Demeaning. • Problem: Even though she agrees to it now, she may not always feel that way.

14. PROFESSIONAL EMPLOYEES Or The “Learned” Professional The Employee MUST: • Be paid a salary of at least $455/week; AND • Have an advanced knowledge gained by “prolonged” study (doctors, lawyers, possibly road engineers, etc.); OR • Have a talent in a recognized field of artistic or creative endeavor.

15. OTHER EXEMPT EMPLOYEES • Highly Compensated Employees • Salary over $100,000 year + manage at least 2 employees. • Outside Salespeople If You Have Questions, Ask Your Attorney

16. “SALARY” SALARY = SALARY It Does NOT = HOURLY WAGE EXEMPT EMPLOYEES MUST BE PAID A SALARY!!!

17. Penalties For Non-compliance • SOL: 3 yrs for willful violations + atty fees + costs. • Willful violations = double damages (OT) • If an entire class is misclassified, they all have to be paid OT for the last 3 yrs.

18. MORE TIPS • For non-exempt employees: • Failure to keep time records is a violation of the FLSA. • Failure to keep track of time allows a disgruntled ex-employee to make a wage claim against you. • Have a policy that no one can work OT without written permission from supervisor.

19. FLSA RECORDS • Employee's full name and social security number. • Address, including zip code. • Birth date, if younger than 19. • Sex and occupation. • Time and day of week when employee's workweek begins. • Hours worked each day. • Total hours worked each workweek.

20. Basis on which employee's wages are paid (e.g., "$9 per hour", "$440 a week", "piecework") • Regular hourly pay rate. • Total daily or weekly straight-time earnings. • Total overtime earnings for the workweek. • All additions to or deductions from the employee's wages. • Total wages paid each pay period. • Date of payment and the pay period covered by the payment.

21. Travel… • Need not pay for normal commute to work {even when in employer’s vehicle} unless work is being performed. • One Day Trips – generally all travel is compensable EXCEPT normal commute time. • Overnight Trips: • All travel during normal work time is compensable {even days not normally worked}. Travel on public transportation outside of normal work time is not compensable. • Driving or riding at the employer’s request is compensable. • Driving done at the employee’s discretion when public transportation was offered may not be all compensable.

22. Training… • Training time need not be paid if ALL of the following are met: • Attendance is outside of the employee’s regular working hours; • Attendance is truly voluntary, (no “suggesting”); • The training is not directly related to the employee’s job; and • The employee does not perform any productive work during such attendance. • Attendance at a regular school or college is the same, EXCEPT that such coursework may be directly related to the employee’s current job without being compensable. • Whether or not the employer pays for training is not related to the issue of payment for time in attendance.

23. Volunteers Basic Rule – public sector employees may not volunteer to perform the same duties for which they are employed. When volunteering for non-related work for an employer, there must be no coercion or time will be compensable. When determining like-work, use broad categories, not narrowly defined. Employees may volunteer for other public entities. True Volunteers may be paid expenses and nominal fees without losing their volunteer status. Exempt employees may volunteer all they wish (or don’t wish).

24. Allows up to 212 hours for fire and 171 hours for police in each 28-day period. Must be “Adopted” by resolution of governing board. Applies only to those actively engaged in public safety (not clerical or dispatch). Not applicable to small departments (4 or less which are exempt from overtime provisions). BEWARE the “non-paid” lunch break!