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FLSA Overtime Regulations

Learn about the Fair Labor Standards Act (FLSA) overtime regulations, including key provisions, compliance, exemptions, and recent developments. Find out how to navigate the impact of these regulations, explore management options, and address future considerations.

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FLSA Overtime Regulations

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  1. FLSA Overtime Regulations

  2. What is FLSA? • Fair Labor Standards Act • Enacted by Congress in 1938 • Regulates Overtime and Minimum Wage • Applies to almost all US employers • Regulations promulgated by the Department of Labor

  3. Key Overtime Provisions • Establishes a 40 hour work week • Requires timekeeping • Overtime compensated at least at time and one-half • Broad intent • Exemptions based on duties and level of pay • Cannot “suffer or permit” employee to work over 40 hours per week or for less than minimum wage.

  4. Compliance • There are NO “deals” to waive overtime compensation • Public employers can provide compensatory time at time x 1.5 • All back pay at time and one-half • Liquidated damages up to twice the back pay • Employee’s legal fees • $1,100 fine per each violation • Individual discipline, prosecution, $10,000 fines, prison • Loss of Federal funding for education and research

  5. What’s (maybe) New? • Proposed regulations would have raised minimum annual salary threshold for overtime pay exemption from $23,660 to $50,440, effective September 1 • Employers, including higher education and CU provided over 290,000 comments • Final regulations raised threshold to $47,476, effective December 1 • US District Court postponed regulations indefinately • We proceeded with implementation of raises but not OT eligibility

  6. Impact • Estimated Employees 967 • Actual Employees 927 (358 raises) • Cost estimated up to $6.6 million • Actual Cost in Raises $1.4million • Actual OT cost <$2 million

  7. Exemptions • Duties Test: Professional/Administrative/Executive AND meet salary threshold • Physicians/Dentists/Residents • Attorneys • Teachers • Humanities postdocs who teach • “Academic professionals” paid more than teachers ($33.5k) • Graduate Students

  8. NOT Exempt • Postdocs • PRAs and Research Associates

  9. Management Options • Prohibit or limit overtime worked • Increase salary to $47,476 • Pay overtime

  10. Decision Assistance • Department specific data • Cost calculator • Meetings with departments

  11. Other Considerations • Budget • FTE • Compression • Equity • NO “Lowball” • Change Management • Morale • Time Tracking (including travel and part-time) • E-mail, texts and calls “after hours”

  12. Implementation • Using My.Leave? Including comp time • Timing increases • Notifying affected employees and supervisors • New paygroups • Comp time accrual capped at 240 hours (480 for seasonal)

  13. Future Issues • Accelerated/indexed adjustments: 40th percentile every 3 years??? • NIH will increase awards for postdoc NRSA recipients to more than threshold Questions?

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