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Reporting of Hours: Workers’ Comp: 2014

Reporting of Hours: Workers’ Comp: 2014. Betsy Reeve, Reeve Shima PC, ereeve@reeveshima.com , 206 624-9955. Quarterly Report of Employer. Form No. 207-006-000 Reporting of hours required for Supplemental Pension & Asbestos Assessment . WAC 296-17-31021 defines how to ascertain worker hours.

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Reporting of Hours: Workers’ Comp: 2014

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  1. Reporting of Hours:Workers’ Comp: 2014 Betsy Reeve, Reeve Shima PC, ereeve@reeveshima.com, 206 624-9955

  2. Quarterly Report of Employer • Form No. 207-006-000 • Reporting of hours required for Supplemental Pension & Asbestos Assessment . • WAC 296-17-31021 defines how to ascertain worker hours. • Policy 64.03 provides additional information on worker hours. • WAC regulation takes precedence over Department’s policy.

  3. Types of individuals working as coaches • Certificated personnel: • Salaried contract personnel (teachers) and salaried personnel (principals and administrators): • Certificated part time substitute teachers; • Classified employees paid by salary: • Salaried contract personnel (school secretary) and salaried personnel (administration secretary): • Classified employees paid hourly (custodian); • Community member not already an employee.

  4. Categories of Employees • Hourly Employees • Salaried Employees • Salaried Contract Employees • a type of salaried employee • Some rules apply to all three; some rules apply to only one subset.

  5. Different categories though • Reporting of hours doesn’t depend on whether certificated or classified; • Reporting of hours doesn’t depend on whether exempt or non-exempt; • Reporting of hours can depend on whether hourly personnel, salaried personnel or whether salaried contract personnel.

  6. WAC 296-17-31021: “Hours Worked” • Typically, ACTUAL HOURS WORKED. • Alternative for salaried employees: • “You must select one of the following methods to report your salaried employees: • Actual hours worked; or • Assumed hours of one hundred-sixty hours per month.”

  7. Assumption • School districts haven’t historically and probably do not want to ask coaches to keep track of actual hours worked. • Thus, probably want to use assumed hours, if possible.

  8. WAC 296-17-31021 • “All salaried employees of an employer must be reported by the same method. You cannot report some salaried employees based on the actual hours they work and others using the one hundred sixty hours per month method.”

  9. WAC 296-17-31021 • “Provided further, in the case of contract personnel employed by schools or school districts, the school or school district shall report actual hours worked for each employee, one hundred-sixty hours per month for each employee or the department may authorize some other method in assuming workers hours for premium calculation purposes.”

  10. Policy 64.03 – Contract Personnel • The Department authorized a different method for contract personnel. • Policy outlines methods by which school districts can report worker hours of “employed contract personnel as authorized by WAC 296-17-350(5).” • WAC 296-17-350 repealed in 1998. • No definition of “contract personnel.”

  11. Policy 64.03 – Contract Personnel • For contract personnel, district can report as: • Assumed hours of 160 hours per month “for each month the employee is on salary.” • Compute by assuming an 8 hour day and 180 day year (equates to 1440 hours) multiplied by 9, 10, 11 or 12 months to reach the monthly reportable hours. • Over 9 months = 160 hours per month. • Over 12 months = 120 hours per month. • Does not say whether it must be calculated the same way for each contract person or can do it based on payment method selected by employee.

  12. Policy 64.03 – Contract Personnel • “Actual hours worked provided that records are kept to substantiate the reported hours. The department will accept the contracted hours as the basis for the reporting method. The formula must be calculated on a quarterly basis as shown below.” “Actual quarterly hours = Number of daily contract hours times the number of working days in the quarter, minus leave time, plus additional hours worked.”

  13. Policy 64.03 – Contract Personnel • So, school districts can report monthly hours for salaried contract personnel based on assumed hours worked of 8 hours per day times 180 day contract divided by 9, 10 , 11 or 12. • In addition, the third subsection reflects a revision of actual hours. You can use contract hours (presumably 8 for regular teacher or staff) times working days in quarter, minus leave time, plus additional hours worked.

  14. Policy 64.03 – Contract personnel • For a teacher (salaried contract person) who works as a coach, do you use contract hours (8 hours per day) times working days plus additional hours worked as a coach? ANSWER: No, according to audit findings. • Can you estimate those hours worked as a coach rather than using a contracted number of hours or actual hours? ANSWER: No, according to Audit findings.

  15. Conclusions • Cannot use “assumed” or “estimated” hours of 2-3 hours per day for coaches or other contracts. • No legal basis to use estimated hours. • Never use “assumed” hours for hourly employees. Use actual hours worked. • For salaried personnel, whether contract or regular salary, can use assumed hours rather than actual. • For salaried contract personnel, in addition to 160 assumed hours, as an alternative, you can use a different number of assumed hours by dividing 1440 hours by 9, 10, 11 or 12 months.

  16. Conclusions • Two methods for salaried personnel • 1. Actual hours • 2. Assumed hours of 160 per month • Three methods for salaried contract personnel: • Above two methods plus • 3. Assumed hours of 1440 per year can be divided by 9, 10 , 11 or 12 months • In addition, it is clear that actual hours can be determined by short cut method of daily contract hours x working days, minus leave time plus additional hours worked.

  17. ESD #113 Audit provides additional information “Hourly employees are to be reported as actual hours worked.” No exceptions. No estimate of coaching hours.

  18. ESD Audit: further definition of contracted employees Salaried Contract Employees: “Salaried contract employees are those employees contracted to work a specific number of hours and days per year.” Examples: teachers, school secretaries, food service manager, bus department manager, school counselor) Notice they may be exempt or non-exempt employee. Coaching contract theoretically covered because it is a contract for a specific season – but see later slides.

  19. ESD Audit: further definition of contracted employees • “Employees (including principals and administrators) who work year round are not considered contracted employees and should be reported by the usual method.” • Example: A principal was reported using assumed 120 hours per month. Cannot use Policy 64.03 to report their hours because they are not contract salaried employees. They work longer than the school year. • They are salaried personnel but not salaried contract personnel.

  20. ESD Audit: further definition of salaried employees Salaried Employees are employees whose regular compensation is not governed by the number of hours that they work. A salaried employee’s regular wage would be the same every month with the exception of non-exempt who is paid for overtime hours.

  21. ESD Audit: methods for salaried employees Salaried employees may be reported by one of two methods: 1. Assumed hours of 160 per month for each month. The 160 hours per month ARE NOT adjusted for hours not worked (i.e. sick leave, vacation, holiday) or additional hours (i.e. overtime). • Query: does this mean that no additional hours are reported for any salaried employee who coaches?

  22. ESD Audit: Method for Salaried employees • “The only adjustment that is allowed for assumed hours is when a salaried employee is newly hired or terminated. You may then prorate that individual’s hours during the first and last month of employment at eight hours per day for each day or partial day worked in that month”

  23. ESD Audit: Second method for Salaried Employees 2. Actual hours worked. Time records are required, the same as hourly employees, that show the actual hours worked. Regular hours would be decreased when not worked (employee leaves early, sick leave, vacation, etc.) and overtime hours added even if not paid. If complete and accurate time records are not maintained, you must report all salaried employees using the assumed hour method.

  24. Examples from audit: counting hours • For salaried contract employees, school district used assumed hours of 121.33 per month (8 hours x 182 days = 1456 hours divided by 12 month) • Wrong: Must use 1440 hours. When divided by 12 = 120 per month.

  25. Examples from audit: coaching contract! • Key language in example relating to salaried contract employees: “Please note under method 1b. [from Policy 64.03] the 1440 hours include all supplemental contracts during the school year contract and you do not need to keep track of the additional hours worked on supplemental contract. Supplemental contracts after the school year and/or during summer would need to be reported in addition to the 1440 hours.”

  26. Critical point*** • Implication for salaried contract employee: Regardless of extra hours for coaching under supplemental contract, salaried contract employees are to be reported as assumed hours (if not using actual hours). If the salaried contract employee’s regular job would result in reporting 160 assumed hours and they work additional hours as coach, they are still reported as 160 hours total.

  27. Critical point *** • Does this same rule apply to all salaried employees, e.g. secretaries, principals, administrators? • ANSWER: Probably. • The Good News: Don’t have to keep track of extra hours for salaried personnel (unless you are reporting based on actual hours)!

  28. Another audit example: Summer contracts • Example: • Teacher and coach worked additional hours during summer for “summer weight room.” School district did not report those hours in addition to the 120 hours per month. • Department’s finding: Under method 1b, the 1440 hours includes all supplemental contracts during the school year and you do not need to keep track of additional hours worked on supplemental contract. Contracts after the school year and during the summer need to be reported in addition to 1440 hours.

  29. Another audit example: Summer contracts • Department found that district underreported by 44.95 hours. Therefore, the district was supposed to report 120 assumed hours (because dividing contract hours by 12 months) plus additional hours of 44.95. • Implication: Not counted as a separate contract requiring reporting of assumed hours of 120 to 160 hours. • Implication: can report based on actual hours. • Implication: Same result if reporting 160 hours per month. • Is the analysis the same for all salaried personnel, including year round employees:? Answer: Probably not because already reporting for regular work of principal or administrator during that quarter.

  30. Another audit example: outside employee • Key language: Contract with outside employees for coaching are being reported as actual hours. This method is incorrect because records are not being maintained of actual hours. Hours are being estimated. Since these employees are being paid a salary, their hours are to be reported as salaried employees. Their hours are to be reported at the 160 per month in which they are on salary.

  31. Implications for outside coaches • Implication: Can’t report 2-3 estimated hours per day. • Implication; Can’t report actual hours unless all salaried employees use actual hours. • Even though working about 75 hours per month, report as 160 assumed hours.

  32. Another Audit example: • Salaried employees were reported based on actual hours worked. They used daily contract hours time number of days in month minus leave time, but did not include additional hours worked but not paid. Principals, administrators do work over their daily contract hours occasionally but the additional hours were not being reported. • WRONG: Department said “You cannot report actual hours worked if you are not keeping track of all hours worked including overtime hours.” • Lesson: If reduce by leave time or do not use 120-160 hours method, you’ll need to keep track of additional hours worked.

  33. TIPS • Coaching hours cannot be estimated at 2-3 hours per day. • Coaching hours during the school year are included in the assumed hours. • If district uses actual hours, for any category of employee, include actual hours spent coaching. • If assuming hours for a year round employee, can only use assumed hours of 160. • Coaching during summer is added separately for salaried contract employee but already included in assumed hours of a year round employee. • If part –time salaried person, use actual hours plus additional actual hours for coaching.

  34. Summation by category of employee:

  35. Hourly Employees • Hourly employees: Use actual hours worked and add additional hours worked as coach based on COMPLETE and ACCURATE record-keeping. • Report regular hours worked and overtime hours. • Do not report hours not worked such as leave, vacation, FMLA and holidays.

  36. Salaried Employees • Salaried employees: • Must report using actual hours or assumed hours of 160 hours per month. • Must use same method for all salaried employees. • Cannot divide contracted hours by 10, 11 or 12. • If report using actual hours, must add additional hours worked for coaching. • If using assumed hours of 160 hours, do not add additional hours worked as a coach. • If it is a year round employee, do not report coaching hours during the summer (unless using actual hours). It would be included in the assumed hours of 160 hours per month.

  37. Salaried Contract Employees • Salaried contract employee (type of salaried employee): • Report either actual hours or contracted hours of 1440 divided by 9, 10, 11 or 12. • If using actual hours, add additional hours worked as a coach. • If using assumed hours, do not report additional hours worked as a coach during school year. • Can prorate first and last month using assumed hours. • Does not cover year round employees such as principals and administrators. • Regardless, if it is a summer supplemental contract, must additionally report the coaching hours. Audit suggests reporting actual hours worked is acceptable even though reported salaried worker using assumed hours for school year work. Could also report assumed hours.

  38. Outside individual with coaching contract • If not using actual hours, report as 160 hours per month. • Report as actual hours only if you report all salaried personnel using actual hours.

  39. Impact on other employment issues • Minimum Wage; • Overtime compensation; • Health Care Benefits.

  40. Minimum Wage • $9.32 per hour • Given WIAA seasons, any contract over $2700 probably satisfies minimum wage requirements. • ($9.32 x 4 hours per day x 6 days/week x 3 months)

  41. Overtime Compensation • Paid to non-exempt employees. • 1 ½ times regular rate of pay if work in excess of 40 hours a week. • Not an issue strictly of hourly versus salaried employees. Salaried employees can be entitled to overtime compensation. • Workers’ compensation reporting based on actual hours does not implicate overtime compensation. Depends on exempt status and number of hours actually worked.

  42. Federal overtime - FLSA • Coaches might be deemed to be teachers and thus exempt from overtime compensation. • No comparable Washington provision. • Federal law may also recognize a coach as a volunteer if paid only a “nominal fee.” • Employers can compensate a volunteering employee with a stipend without eliminating the employee’s volunteer status. • The employee can be paid no more than 20% of what a full time employee would be paid for the activity. • -Washington's provision requires that the services be rendered gratuitously although the person can receive a nominal amount of compensation. A employee cannot serve as a volunteer when the duties are similar to the duties of the regular job, e.g. teacher/coach or counselor/coach.

  43. Health Care BenefitsCaveat: I am not a benefits expert! • Statement of Issue: • Someone expressed concern that reporting 160 hours would affect eligibility for health care benefits based on 130 hours. • Background • Affordable Care Act provides a threshold based on 30 hours per week. An employer does not have to cover an employee who works less than 30 hours per week.

  44. Health Care Benefits • Reporting for purposes of workers’ compensation is not determinative factor of eligibility for health care coverage. • Eligibility will probably be based on actual hours worked (or on paid leave) and not on assumed hours for purposes of workers’ compensation reporting.

  45. ANY QUESTIONS? Betsy Reeve ereeve@reeveshima.com 206 624-9955 45

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