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Top 10 Overtime/ FLSA Considerations By: State Personnel
March 2008-IIF Review • The top 10 FLSA/ Overtime questions asked of State Personnel in 2007…
March 2008-IIF 10-Meal Periods • Bona fide meal periods are not worktime. • Employees must be completely relieved from duty for the purposes of eating regular meals. • The employee is not relieved if he is required to perform any duties, whether active or inactive, while eating. • Beware of interrupted meal times when employees break for meals at their desks.
March 2008-IIF 9-Training Time Time employees spend in meetings, lectures, or training is considered hours worked and must be paid, unless all four conditions are met: • Attendance is outside regular working hours • Attendance is voluntary • The course, lecture, or meeting is not job related • The employee does not perform any productive work during attendance
March 2008-IIF 8-Comp Time • Compensatory time off (comp time) is paid time off the job that is earned and accrued by an employee instead of immediate cash payment for working overtime hours. The use of comp time instead of overtime is limited by Section 7(o) of the FLSA to a public agency that is a state, a political subdivision of a state, or an interstate governmental agency. • Employees may accrue up to 240 hours.
March 2008-IIF 7-Travel Time • More latitude under State Personnel Rules than Federal Regulations • Travel time of non-exempt staff to attend a meeting, conference, seminar, training course, etc. is compensable. • Non-exempt employees traveling for one day (not overnight) shall be paid for all travel time. Count travel time when computing OT. • Non-exempt employee traveling by common carrier on overnight business shall be paid for all time, however, only hours of travel within normally scheduled work hours are counted for OT when: • Travel is outside of regular work hours • Overnight business • Common carrier • Employee is not doing actual work while traveling • Under all other conditions travel time is considered work hours when computing OT hours except when the employee voluntarily chooses to drive their own personal vehicle.
March 2008-IIF 6-Recordkeeping-Non Exempt • Time and Day of week employee’s workweek begins • Hours worked each day • Total hours worked each workweek • Basis on which employee’s wages are paid (per hour, per week, piecework • Regular hourly rate • And more, see DOL factsheet
March 2008-IIF Recordkeeping/Exempt employees You can keep records on Exempt individuals without jeopardizing exempt status • Require employees to record/track hours • Require employees to work a specified schedule State Auditor requires records.
March 2008-IIF 5-Minimum Wage • The federal minimum wage for covered, non-exempt employees is: • $5.85 per hour effective July 24, 2007 • $6.55 per hour effective July 24, 2008 • $7.25 per hour effective July 24, 2009. • Consider salary grade zero, and internships.
March 2008-IIF 4-Work Week • A period of 168 hours during 7 consecutive 24-hour periods. • Can begin on any day of the week at any hour of the day. • Each work week stands alone. • Must be paid for all hours worked in a workweek. • Does not have to coincide with pay period.
March 2008-IIF 3-Hourly vs. Salary pay • Can pay hourly employees on a salaried basis. • Example: Monthly paid hourly employees • Regular rate to calculate overtime fluctuates. • If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. • If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. • A monthly salary should be multiplied by 12 and the product divided by 52.
March 2008-IIF 2-Exempt vs. Non-Exempt • State Personnel tentatively classifies positions as exempt or non-exempt. • Agency has final responsibility for appropriate designation. • Title alone does not meet the tests. • Executive is most typical • Supervise 2 or more, ensure performing full scope of supervision
March 2008-IIF 1-Regular Rate • Is determined by dividing total earnings in the workweek by the total number of hours worked in the workweek. • Earnings must include: • On Call Pay • Shift Differential pay
March 2008-IIF 1-Regular Rate continued Step 1: Total Straight Time Earnings Divided By Total Hours Worked = Regular Rate Step 2: Regular Rate x .5 = Half Time Premium Step 3: Half Time Premium x Overtime Hours = Total Overtime Premium Due
March 2008-IIF Resources • Call your personnel analyst if you have additional questions! • Handouts • Websites: • http://www.dol.gov/compliance/laws/comp-flsa.htm • http://www.dol.gov/esa/whd/StateandLocalGovernment/CA_MainMenu_files/slide0001.htm
March 2008-IIF Questions?