FLSA – What Managers Need to Know October 2016
FLSA – What Managers Need to Know
October 2016
Presentation Overview
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Outcomes and implicationsManager’s responsibilitiesFinancial ImplicationsFLSA recapQ & A at end
General FLSA Options for Impacted Employers
Pay time-and-a-half for overtime work over 40 hours
Raise workers’ salaries above new threshold
Limit workers’ hours to 40 per week
Some combination of the above
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SHRM Estimated Automatic Increases
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FLSA Results for MSUAll exempt positions reviewed (415 total)
- 225 positions remained exempt
- 190 positions reclassified to non-exempt
Financial impact reviewed and no salary increases given
Impacted employees and department heads notified
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Session focus: Manager’s Responsibility
Compensable Time
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FLSA Overtime and Compensable Time
Overtime – must pay if employee works over 40 hours
If “suffered or allowed” to work, must be compensated
Flexible scheduling – In lieu of overtime
- Schedule is adjusted to prevent overtime
- Must be within the same workweek
MSU does not have “comp time” to bank OT hours worked
Paid leave counts as time worked for overtime (MSU policy)
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“Off-Duty “ Overtime Concerns
Taking work home and not reporting time
Making/receiving job-related phone calls at home
Working through lunch
Working before or after shifts
Job-related “volunteer” work
Non job-related volunteer work
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“Off-the-Clock” WorkEmployees accustomed to working to get job done now
must be aware of hours worked
Never encourage employee not to report all hours
Employer must have realistic expectations
Work-load vs. performance
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Employee Working on Holiday
Holiday pay– enhanced holiday pay or time off above regular pay is a type of benefit
Regular pay plus 1.5 holiday pay
Must take time within 90 days from holiday
If employee works overtime on holiday, must be paid overtime that week
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Meal Time and Breaks
KRS requires a “reasonable period for lunch” close to middle of shift (no sooner than three hours or more than five hours)
Neither federal or Kentucky law requires paid meal break
Employees should be required to take meal break
Must compensate employees who work through meal period
Kentucky regulations: rest periods and breaks
- 10 minutes every four hours
- Can’t dock pay for rest periods
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Travel11
Ordinary home to work travel not work time
Travel between job sites during normal work day is work time
Travel that keeps non-exempt employee away from home overnight is work time when employee actually performs work
- Time spent as passenger on any mode of transportation not work time unless during normal work hours or actual work performed
- Employee required to drive is compensated for all travel hours
HR will provide resources, including website examples
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Training
Time spent in lectures, seminars, classes or training is considered hours worked and must be paid unless all four conditions are met:
1. Attendance is voluntary
2. Event is not directly job-related
3. Attendance is outside of employee’s regular work hours
4. Employee performs no productive work during this period
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On-Call13
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Waiting Time14
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Mobile Device Overtime Concerns15
Laptops
Tablets
Smartphones
Remote Access
Manager role:• Set expectations• Behavioral changes • Email curfew?
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Manager’s Responsibilities
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Manager’s Responsibilities
Prestige & status
EquityLoss of
autonomyDecreased
opportunityLoss of
flexibility
Exempt workload increase
Employee Morale
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Manager’s Responsibilities
Be aware of FLSA provisions
Manage overtime based on need and budget limitations
Ensure employees work only when needed
Avoid encouraging work after hours
Approve overtime prior to work if possible
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Financial Implications for Managers
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Financial Overview
Transition planning
Overtime
Employee workload review
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Impact on Transitioning Employees
Transition from monthly to bi-weekly pay cycle
FLSA transition advance
FLSA individual meetings
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Time Reporting Responsibilities
Submit and approve by deadline
Tools provided to raise awareness of deadlines
- Payroll calendar
- Google calendar
- Email reminders
Best practices
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Overtime Management Reports
Reports provided to VP, Dean, Director, Chair and Financial Manager
Reports provided by 20th of month
Reimbursements posted by 20th of month
Self supporting orgs and auxiliaries fund their own overtime
MSU Institutional overtime budget
Best practices
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FLSA Recap
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FLSA Lawsuits Top 10
10. Failure to compensate employees for training time
9. Failure to compensate employees who volunteer their time
8. Failure to include extra compensation in overtime pay
7. Failure to pay employees for short breaks
6. Failure to pay employees who work through lunch
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FLSA Lawsuits Top 10
5. Docking time for employees working on the clock
4. Failure to pay employees working “off the clock”
3. Misclassification of employees as independent contractors
2. Misclassification of employees as exempt
1. Failure to understand that FLSA generally favors employee; burden of proof is on employer
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FLSA Recap
Law intended as benefit for employees not previously eligible for overtime
Departments responsible for managing overtime
Changes how organizations do business
Federally mandated by December 1
MSU implementation date is November 12
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