FLSA Compliance Review at Indiana University

1. FLSA Information Session Implementation of Changes Indiana University 2005 Department of Labor's Fair Labor Standards Act (FLSA) Compliance Review Web site:http://www.indiana.edu/%7Euhrs/flsa/index.html

2. Session Agenda • Overview • Personnel Policies • Recordkeeping • Payroll Processing • Other Issues Indiana University

3. Session Overview • Introduction • Background information of FLSA • History of DOL audits at IU • FLSA amendments and new regulations • Personnel policies and benefits • Recordkeeping requirements Indiana University

4. Categories of Professional Positions at IU • PAE Exempt from Overtime • PAO Overtime Eligible • PAU Salaried Overtime Eligible Indiana University

5. PAE: Exempt from Overtime • Positions meet FLSA duties test and salary level test for exemption from overtime compensation • Salary covers all hours worked • Receive no additional compensation for hours over 40 in a week Indiana University

6. PAO: Overtime Eligible • Positions do not meet the FLSA duties test for exemption from overtime compensation • Must receive compensation for hours over 40 in a week Indiana University

7. PAU: Salaried Overtime Eligible • Positions meet the FLSA duties test but do not meet the FLSA salary level test for exemption from overtime compensation • Part-time positions with an annual salary below $23,660 • Must receive compensation for hours over 40 in a week Indiana University

8. Overtime

9. Definitions • Overtime: Hours in pay status in excess of 40 in a workweek • Pay status: All time worked plus paid time off (vacation, PTO, sick, holiday, etc.) • Workweek: Begins and ends at 12:00 midnight on Saturday Indiana University

10. PAO: Overtime Compensation • Time and one-half • Pay or Comp Time • Department’s choice (must announce before overtime is worked) Indiana University

11. PAO: Compensatory Time Off • Accumulation limit is 160 hours • Pay only option when accumulation limit is reached until accumulation drops below limit • Department can pay off comp time at any point • Department can require comp time to be used before PTO is used • All comp time must be used before going into a no-pay status Indiana University

12. Overtime Points of Interest • Employees can arrange flexible scheduling; overtime is to be pre-approved • Requires accurate recordkeeping using new timesheet • Comp time must be paid or used before a person transfers, promotes, or demotes to a non-overtime eligible position or to another department Indiana University

13. Paid Time Off (PTO)

14. PTO Accruals • No change • 20 hours/month, 240 hours/year with less than 5 years service • 24 hours/month, 288 hours/year with 5 or more years service Indiana University

15. PTO Usage • PAE: No change • Full-day increments • PAO and PAU: Actual time used • Annual max usage limit: No change • 240 or 288 hours Indiana University

16. Sick Bank Time • Adding Time:No change • Up to 96 hours unused PTO at end of year • Using Time • PAE: No change • Full-day increments • PAO and PAU: Actual time used Indiana University

17. Carry Over PTO to New Year • No change • 240 hours with less than 5 years service • 288 hours with 5 or more years service Indiana University

18. Terminal Pay • No change • All PTO on books at end of last day Indiana University

19. Recordkeeping • PAE: No change • PAO and PAU: See new timesheet Indiana University

20. PTO Points of Interest • Earned at end of last workday of month • PTO earned in first and last month of employment is prorated by portion of month worked • Not earned when in no-pay status • Must use all PTO up to annual limits before going into no-pay status • PAE can charge partial day absences to PTO for FMLA and Workers’ Compensation Indiana University

21. Travel Time

22. Travel Time • Travel time during normal work hours is work time • Daily commute from home to work and back is not work time • Home to one-day assignment in another city • Travel time outside normal work hours that exceeds the normal commute time to and from workiswork time Indiana University

23. Overnight Travel • Counts as work time • Driving that the employee is required to perform is work time • Time when work is performed while traveling iswork time • Travel time during normal work hours iswork time • Travel time on a day off during hours that are normal work hours during the week is also work time Indiana University

24. Overnight Travel • Does not count as work time • Travel time not covered above is not work time • A break in travel for meals is not work time • Time at the destination when the employee is free to come and go as he or she wishes is notwork time Indiana University

25. Off-campus Work

26. Off-campus Work • Lectures, Meetings and Training Programs • Approved attendance at these and similar activities is work time if one or more of the following occur: • Attendance is during normal work hours • Attendance is required by the university • The event is work related • University work is performed Indiana University

27. Off-campus Work • Conferences • Time when daily conference activities are completed and the employee is on his/her own is not work time • Time for meals, sleep, and voluntary social events that are part of the conference is not work time Indiana University

28. Policies Applicable to All Professional Staff

29. Policies Applicable to All Professional Staff • Adverse Weather • No Change • Staff who are required to work during adverse weather do not receive any additional pay or time off • Holidays • No Change • Same 9 Holidays, each eight hours, prorated by FTE; receive equivalent time off when a holiday is worked • Schedule Change • No Change • Professional staff do not receive any additional pay when a change in work schedule occurs Indiana University

30. Policies Applicable to All Professional Staff • Call Back • No change • Staff do not receive any premium pay for additional trips back to work • Change • PAO and PAU receive pay for the actual time worked, and the hours worked will count in determining if overtime has been worked for the week • Seniority Date/Service Credit • No Change • All Professional positions (PAE, PAO, PAU) in a department are in the same occupational unit Indiana University

31. Policies Applicable to All Professional Staff • New-employee Evaluation Period • No change • Serve an evaluation period of 6 months • PTO • No Change • Accruals, adding sick time, carry over of PTO, and terminal pay provisions remain the same • Change • Usage and recordkeeping rules for PTO and sick time for PAO and PAU Indiana University

32. Policies Applicable to All Professional Staff • Overtime • Change • PAO and PAU eligible for overtime compensation and require recordkeeping using new timesheet • Travel Time • Change • PAO eligible to count certain travel time as work time; certain off-campus work activities count as work time Indiana University

33. Recordkeeping

34. Overview • Recordkeeping is required by law for accurate overtime calculations • Monthly timesheet forms available on the UHRS FLSA Web site • Replaces PTO 'Blue' Cards • All timesheets kept on file in department • Employee and Supervisor signature required Indiana University

35. Processing of Pay • Receive regular monthly pay adjusted for overtime and absent w/o pay • Overtime for work weeks ending this month paid on next monthly cycle • Hours above standard paid on next available off cycle after month end • No change to absent without pay -- can be in current or following month Indiana University

36. Timesheet • Actual time recorded to the nearest tenth of an hour • Weekly total may cross months for overtime calculation • Categories for 'Other' types described on instruction sheet • Comp Hour balances must be tracked on timesheet • PTO and Comp balances carried over month to month Indiana University

37. Indiana University

38. Indiana University

39. Payroll Processing

40. Payroll Processing for PAO Employees • OVT payments processed on next MO on-cycle • Addtl reg hrs (HAS) for part-time processed on next off-cycle • ABE hrs entered on current MO voucher or on adj voucher for next MO on-cycle Indiana University

41. Adjustment Vouchers for PAO Employees • Hrs broken down into FLSA wkly periods per month • Separate earn codes/hours by payroll – on-cycle/off-cycle • Use “inflated OVT rate” if addtl pay (temp, etc) in same wkly period • Include detailed explanations Indiana University

42. Other Issues

43. Other Issues • Valid Job Combinations • Additional Pay • Flat Rates • Position E-Docs • Temporary Pay • Hourly Appointments Indiana University

44. FLSA Information Session Implementation of Changes Indiana University 2005 Department of Labor's Fair Labor Standards Act (FLSA) Compliance Review Web site:http://www.indiana.edu/%7Euhrs/flsa/index.html