Fair Labor Standards Act (FLSA) Presented by County of Riverside – Human Resources Debbie Shinn Jennifer Moquin.

Fair Labor Standards Act Fair Labor Standards Act (FLSA)(FLSA)

Presented by Presented by

County of Riverside – Human ResourcesCounty of Riverside – Human Resources

Debbie ShinnDebbie Shinn Jennifer MoquinJennifer Moquin

Fair Labor Standards Act Fair Labor Standards Act (FLSA)(FLSA) Requires employers to compensate non-Requires employers to compensate non-

exempt employees one-and-one-half-exempt employees one-and-one-half-times their regular rate of pay, for hours times their regular rate of pay, for hours actually worked over 40 in an FLSA work actually worked over 40 in an FLSA work week.week.

Exempt employees are not entitled to Exempt employees are not entitled to receive FLSA overtime.receive FLSA overtime.

What is changing?What is changing?

The County’s Classification & The County’s Classification & Compensation Unit is reviewing all job Compensation Unit is reviewing all job classifications to determine whether classifications to determine whether each class is exempt or non-exempt.each class is exempt or non-exempt.

Some classifications will move from Some classifications will move from exempt to non-exempt; others will exempt to non-exempt; others will move from non-exempt to exempt. move from non-exempt to exempt. (Please see the Class and Salary listing located on: (Please see the Class and Salary listing located on: www.workforceexchange.netwww.workforceexchange.net under Resources for the latest under Resources for the latest update.)update.)

Who is subject to the Who is subject to the overtime changes?overtime changes? FLSA overtime applies to “non-exempt” FLSA overtime applies to “non-exempt”

employees within the following Bargaining employees within the following Bargaining Units:Units:

SEIUSEIU LIUNALIUNA As well as:As well as: Non-exempt employees covered by the Non-exempt employees covered by the

Management Resolution.Management Resolution.

Exempt employees are Exempt employees are notnot eligible for overtime eligible for overtime pay under FLSA rules.pay under FLSA rules.

FLSA Overtime FLSA Overtime Calculations:Calculations:

Overtime is based on time actually Overtime is based on time actually worked over 40 hours in an FLSA work worked over 40 hours in an FLSA work week (not time paid). For example, week (not time paid). For example, Suzie reported 32 hours Regular, 8 Suzie reported 32 hours Regular, 8 hours Vacation and 4 hours Overtime. hours Vacation and 4 hours Overtime. Suzie is not eligible to be paid time Suzie is not eligible to be paid time and one half for the overtime hours, and one half for the overtime hours, since she worked fewer than 40 hours since she worked fewer than 40 hours in the FLSA workweek. in the FLSA workweek.

FLSA Overtime FLSA Overtime Calculations:Calculations:

An FLSA work week is based on an An FLSA work week is based on an employee’s FLSA schedule as listed employee’s FLSA schedule as listed in Time & Labor. in Time & Labor.

FLSA work weeks consist of 168 FLSA work weeks consist of 168 consecutive hours (7 days x 24 consecutive hours (7 days x 24 hours per day).hours per day).

FLSA WorkFLSA Work SchedulesSchedules

Overtime will not be evaluated Overtime will not be evaluated accurately unless the correct FLSA accurately unless the correct FLSA schedule is updated in PeopleSoft schedule is updated in PeopleSoft HRMS.HRMS.

Timekeepers will be given detailed Timekeepers will be given detailed instructions for updating these schedules instructions for updating these schedules in HRMS.in HRMS.

In the example above, John works a 9/80 schedule with non In the example above, John works a 9/80 schedule with non pay week Monday off. For those on 9/80 schedules, the 8 pay week Monday off. For those on 9/80 schedules, the 8 hour day is divided in half. (For example, hours between 8 hour day is divided in half. (For example, hours between 8 a.m. and noon would fall in FLSA Week 1. Hours between a.m. and noon would fall in FLSA Week 1. Hours between 12:30 and 4:30 p.m. would be in FLSA Week 2.) 12:30 and 4:30 p.m. would be in FLSA Week 2.)

How the System will Account for 9/80 Days:How the System will Account for 9/80 Days:

FLSA Rate:FLSA Rate:

FLSA rate is computed as:FLSA rate is computed as: (Total hours worked x the pay rate) + (total (Total hours worked x the pay rate) + (total

cost of applicable differentials) divided by the cost of applicable differentials) divided by the total hours worked (including overtime hours) total hours worked (including overtime hours) = average FLSA rate. = average FLSA rate.

Example: Employee's pay is $10.00 per hour. Example: Employee's pay is $10.00 per hour. The employee has $32.00 in differentials The employee has $32.00 in differentials earned and has worked 40 regular hours, and 6 earned and has worked 40 regular hours, and 6 overtime hours. The FLSA rate will be overtime hours. The FLSA rate will be computed as (46 x $10.00) + $32.00)/46 = computed as (46 x $10.00) + $32.00)/46 = $10.70. The FLSA Overtime rate is $10.70 x $10.70. The FLSA Overtime rate is $10.70 x 1.5 = $16.05.1.5 = $16.05.

Evaluation of Hours Evaluation of Hours WorkedWorked At the end of the pay period, time worked in At the end of the pay period, time worked in

excess of the employee’s schedule will be excess of the employee’s schedule will be evaluated and compared to the FLSA work week. evaluated and compared to the FLSA work week. If the FLSA work week has not been completed If the FLSA work week has not been completed during the pay period, hours in excess of the during the pay period, hours in excess of the scheduled hours will be paid at straight time (XOT).scheduled hours will be paid at straight time (XOT).

The following pay period the entire FLSA workweek The following pay period the entire FLSA workweek will be re-evaluated and eligible hours (those will be re-evaluated and eligible hours (those worked over 40 in the FLSA work week) will be worked over 40 in the FLSA work week) will be adjusted and paid at the FLSA overtime rate.adjusted and paid at the FLSA overtime rate.

After re-evaluation, if the hours are not eligible for After re-evaluation, if the hours are not eligible for FLSA overtime there will be no adjustment made in FLSA overtime there will be no adjustment made in the following pay period.the following pay period.

Time Sheet ExamplesTime Sheet ExamplesJohn Smith works a 9/80 schedule, with non-pay week Monday off. During the pay period of 4/12/07 through 4/25/07, John is claiming that he has worked 2.0 hours overtime during the current pay period.

In the paycheck sample 4/12/07 – 4/18/07 Mr. Smith was compensated .5 straight time on 4/17/07. The system evaluated the time as straight time since Mr. Smith had taken vacation and the total hours worked were less than 40.

The additional 1.5 hours were paid at straight time for 4/19 and 4/25/07. The hours for 4/19/07 would not be considered overtime since Mr. Smith took vacation and did not work over 40 hours. The half hour on 4/25/07 will be evaluated in the following pay period.

If it is determined that John Smith had If it is determined that John Smith had workedworked over 40 hours during FLSA over 40 hours during FLSA Week 3, Mr. Smith would see an Week 3, Mr. Smith would see an adjustment for the remaining time on the adjustment for the remaining time on the following paycheck.following paycheck.

SummarySummaryOvertime adjustments will be made after Overtime adjustments will be made after

the FLSA schedule is complete and the FLSA schedule is complete and evaluated.evaluated.

Overtime is paid on FLSA weeks Overtime is paid on FLSA weeks completed during the pay period.completed during the pay period.

The 9/80 day will be split in half to total The 9/80 day will be split in half to total 40 hours scheduled in each FLSA work 40 hours scheduled in each FLSA work week.week.

FLSAFLSA

Let’s review what has changed regarding Let’s review what has changed regarding payment of FLSA Overtime at the County of payment of FLSA Overtime at the County of

Riverside.Riverside.

ReviewReviewChoose the best answer:Choose the best answer:

John is a Custodian and works five 8 hour days, John is a Custodian and works five 8 hour days, Monday through Friday (his FLSA schedule is Monday through Friday (his FLSA schedule is Thursday through Wednesday). Monday is a holiday Thursday through Wednesday). Monday is a holiday and John is paid for 8 hours holiday. John worked 10 and John is paid for 8 hours holiday. John worked 10 hours each day on Tuesday, Wednesday, Thursday hours each day on Tuesday, Wednesday, Thursday and Friday. How much overtime would John be and Friday. How much overtime would John be entitled to in the pay period?entitled to in the pay period?

A.) John is entitled to 4 hours overtimeA.) John is entitled to 4 hours overtime

B.) John is not entitled to overtimeB.) John is not entitled to overtime

C.) John is entitled to 8 hours overtimeC.) John is entitled to 8 hours overtime

ReviewReviewChoose the best answer below:Choose the best answer below:

AnswerAnswerB.) B.) John is entitled to 4 hours overtime. John is entitled to 4 hours overtime. Due to the holiday in Week 1, John only had 36 Due to the holiday in Week 1, John only had 36

hours worked including the 4 hours overtime hours worked including the 4 hours overtime reported. During FLSA Week 2 John had 44 hours reported. During FLSA Week 2 John had 44 hours worked, therefore John would receive 4 hours paid worked, therefore John would receive 4 hours paid at straight time in FLSA Week 1 and 4 hours paid at straight time in FLSA Week 1 and 4 hours paid at time and one half for FLSA Week 2.at time and one half for FLSA Week 2.

ReviewReviewChoose the best answer:Choose the best answer:

Jim periodically is required to stay late for his job as a Jim periodically is required to stay late for his job as a Department Director. Jim’s position is considered Department Director. Jim’s position is considered exempt. Below is an example of Jim’s timesheet. How exempt. Below is an example of Jim’s timesheet. How much overtime is Jim entitled to be paid?much overtime is Jim entitled to be paid?

ReviewReviewChoose the best answer:Choose the best answer:

A.) Jim is entitled to 9 hours overtime.A.) Jim is entitled to 9 hours overtime.B.) Jim is entitled to 5 hours overtime, B.) Jim is entitled to 5 hours overtime,

since he only had 36 hours worked since he only had 36 hours worked in week 1.in week 1.

C.) Jim is not entitled to any overtime.C.) Jim is not entitled to any overtime.

AnswerAnswer

C.) C.) Jim is not entitled to any overtime. Jim is not entitled to any overtime. Since Jim’s classification is exempt, Since Jim’s classification is exempt,

he he is exempt from Federal overtime is exempt from Federal overtime regulations. regulations.