FLSA Basics: Its Impact on You
Objectives • Define new Department of Labor requirement • Address benefits of the new overtime rule • Clarify employee/supervisor responsibilities regarding time keeping • Understand the importance of tracking time and requesting/reporting leave • Identify resources available to enhance understanding of Department of Labor requirement
F L S A Fair Labor Standards Act
FLSA Changes Effective December 1, 2016 NEW OLD Previous to December 1, 2016 $47,476 $23,660
(Video from k-state.edu/flsa)
FLSA Classifications Non-Exempt Exempt Paid same salary amount Eligible for overtime after whether worked 40 hours 40 hours WORKED within or more within the the workweek workweek
How does the new rule benefit me? Choose your Work/Life Balance Time over 40 hours worked = additional compensation Department of Labor’s commitment to employees
FLSA Determination Human Capital Services – Compensation and Organization Effectiveness makes the FLSA determination based on Department of Labor (DOL) regulations. Additional information on DOL regulations can be found on the Human Capital Services website.
What are employee and supervisor responsibilities?
Employee Responsibilities • Beginning with November 20, 2016 pay period record time worked • Follow department timekeeping process Record Time • Obtain prior approval for time off and schedule adjustments • Record leave following department process Request & Record Leave • Each workweek runs from Sunday @ 12:01 a.m. through Saturday @ midnight • Follow department timekeeping timelines Adhere to Timelines
Recording Time and Leave Time and leave is recorded in quarter hour increments. Minutes Worked Hours Recorded 00-07 0.00 08-22 .25 23-37 .50 38-52 .75 53-67 1.00
Example: Rearranged Schedule with Supervisor’s Permission Sun Mon Tues Wed Thurs Fri Sat Total 0 8 8 10 8 6 0 40 Report Actual Hours Worked
Compensatory Time vs. Overtime Pay Compensatory Time Overtime Pay Eligible for comp time Eligible for overtime after 40 hours pay after 40 hours Awarded at 1.5 times Awarded at 1.5 times WORKED within the the hours worked WORKED within the the hourly rate workweek workweek 42 hours worked in week 42 hours worked in week 2 hours x 1.5 = 3 hours 2 hours (1.5 x hourly comp time rate)
Overtime Compensation Agreement for Non-Exempt Employees (PER-34)
Overtime example Workweek Sun Mon Tues Wed Thurs Fri Sat Total REG 8 8 10 8 6 40 CME/ 2 2 OTP
Holiday example Thanksgiving Holiday Sun Mon Tues Wed Thurs Fri Sat Total REG 8 8 8 24 HDC 8 8 16
Holiday Example Thanksgiving Holiday – Additional Hours Worked Sun Mon Tues Wed Thurs Fri Sat Total REG 8 8 9 25 HDC 8 8 16
Example Sick/Vacation Leave & Additional Hours Worked Sun Mon Tues Wed Thurs Fri Sat Total REG 8 8 9 25 SCK/ 8 8 16 VAC 7 15
Leave Ask Leave Accrual Obtain prior department based on paid approval for how to time leave request leave
Timelines Employee & Supervisor Employee Supervisor Submit on payday Records Daily Approves or as directed
Common Earnings Codes CME - Compensatory Time Earned (1.5) CMT - Compensatory Time Taken DDY - Discretionary Day FNL - Funeral Leave HDC - Holiday Credit HCP - Holiday Compensatory Time Earned (1.5) HDP - Holiday Pay (1.5) JRY - Jury Duty REG - Regular Earnings OTP - Overtime Paid (1.5) SCK - Sick Leave VAC - Vacation Leave
Where Can I Find Information? Human Capital Services http://www.k-state.edu/hcs/ Department of Labor www.dol.gov/whd/flsa Who can I contact for Questions? HCS Department Liaison Your Supervisor HCS Compensation team at HRComp@k-state.edu.
Timeline: U.S. Department of Labor is changing the Fair Labor Standards Act (FLSA). Compliance deadline December 1, 2016 … K -State Effective Date November 20, 2016
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