Exempt and nonexempt Employee Time Management Objectives Overview of the new FLSA regulations coming into effect December 1 2016 H ow the changes may impact you T he differences between nonexempt and exempt employees ID: 552305
Download Presentation The PPT/PDF document "Upcoming FLSA Changes" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Upcoming FLSA Changes
Exempt and non-exempt Employee Time ManagementSlide2
Objectives
Overview of the new FLSA regulations coming into effect December 1, 2016.
H
ow the changes may impact you.The differences between non-exempt and exempt employees. Helpful tips regarding hot topics:Travel timeTelecommutingOn-call practicesReturn to workBreaksSlide3
What is FLSA?
FLSA stands for Fair Labor Standards Act of 1938.
F
ederal law addressing employment topics, such as minimum wage and overtime eligibility. FLSA establishes standards for full-time and part-time workers in the private sector and with federal, state and local governments. Slide4
What is a Non-Exempt Employee?
Non-exempt employees are hourly employees who are entitled to overtime,
if they
work over 40 hours in a week. Overtime is accrued at 1.5 times of the employee’s regular hourly pay rate. UTRGV application:Non-exempt employees must receive overtime pay or time off at the overtime rate, if they work more than 40 hours per week, calculated in accordance with the UTRGV work week, Monday through Sunday. Supervisors
must pre-approve all overtime
requests in advance of accrual.
Employees
are expected to
exhaust overtime hours earned as compensatory time (accrued at the overtime rate).Slide5
Non-Exempt Employees
When overtime is paid out rather then exhausted as compensatory time off, approval of the VP, or his/her designee, is required.
All overtime should
be exhausted within a 12 month period from the date of accrual. Please remember that employees should take overtime hours earned as compensatory time off. After 12 months, accrued overtime will be paid out automatically.For example, if an employee earns $10/
hr
and works 41 hours one week, the employee is entitled to 1 hour and 30 minutes of time off or $15 in pay.
*Please note: All overtime worked will be banked at a rate of 1.5 the regular pay rate when employees
work
over 40 hours any given week. Slide6
What is an Exempt Employee?
Exempt employees are salaried employees who are not entitled to overtime pay, nor time off, when they work over 40 hours per week.
Supervisors may require an exempt employee to work over 40 hours any given week when business needs necessitate additional time to complete a project.
Exempt employees generally have more schedule flexibility to accomplish work goals and projects.Slide7
FLSA – December 1, 2016
On May 17, 2016 the Department of Labor (DOL) issued its final regulations, which is expected to go into effect on December 1, 2016.
On December 1, 2016 many positions with a salary set below $47,476 per year will be entitled to overtime pay.
Exception: Certain job titles qualify for specialized occupational exemptions, such as, teachers and academic administrative personnel. Positions falling within the exception will remain exempt and paid at least as much as the entrance salary for teachers at UTRGV.Slide8
FLSA – December 1, 2016 – Cont’d
What are Academic Administrative Personnel?
They are “administrative
personnel that help run higher education institutions and interact with students outside the classroom, such as department heads, academic counselors and advisors, intervention specialists and others with similar responsibilities ...subject to a special salary threshold that does not apply to white-collar employees outside of higher education. These employees are not entitled to overtime compensation if they are paid at least as much as the entrance salary for teachers at their institution.”
-Department of LaborSlide9
FLSA Changes F
urther
E
xplained…The minimum salary for exempt employees was calculated based on the standard salary level at the 40th percentile of full-time employee earnings, in the current lowest wage region (the South). Effective December 1, 2016: Most exempt employees must earn a salary of $913 per week or $47,476 annually, if a full-time employee.
Under the new FLSA regulations, automatic updates of most exempt employee salaries and compensation levels will occur every 3 years. Slide10
What Happens On December 1, 2016?
If
a position changes from exempt
to non-exempt, the title will stay the same and the salary, in most cases, will stay the same. Salaries will not be reduced.Newly non-exempt employees will be entitled to overtime pay or compensatory time for all time worked over 40 hours per week. If it’s necessary for non-exempt employees to work over 40 hours during any week, the employee must first seek prior approval from his/her supervisor. Neglecting to seek permission prior to working overtime could result in disciplinary action or additional coaching.Slide11
Can Employees Donate Work Time?
Non-exempt employees cannot donate or volunteer time. The UTRGV volunteer process is formal and does not apply in these situations.
Non-exempt employees must be paid or provided compensatory time for all time worked.
All non-exempt employees must report actual time worked each day on their timecards. For example: Employees must not report working 8 hours consecutively if the employee worked 6 hours one day and 10 hours the next day, the employee must report “6” and “10” on the timecard.Slide12
Travel- Non-Exempt Employees
Video Slide13
Video Summary
A
n
on-exempt employee will be compensated for travel if it occurs during normal working hours (8am to 5pm or the assigned commonly worked schedule). An employee who travels outside normal working hours will be compensated for travel, if the employee is engaged in work activities while traveling (i.e. review of notes, emails, reports, etc.). Drivers are also compensated for driving independent if they are driving during normal working hours.When is travel time not compensable?
When an employee is not performing work
related activities
such as when sleeping
, eating
or reading a leisure book outside normal working hours.
Passengers
are not compensated for time spent traveling when it occurs outside normal working hours. Slide14
Non-Exempt Employees Overseeing Students During Travel Periods
If someone has an oversight role over others, such as students, (outside normal working hours), here are a few recommendations:
Assign an exempt employee, rather than a non-exempt employee, to perform this function.
If an exempt employee is not available, after a certain amount of time switch the responsibility to another non-exempt employee so that each employee works as close to a 40 hour week as possible. *Please Note: Non-exempt employees are entitled to compensation when viewing, considering, and responding to work related texts or calls during non-normal work hours (before 8am, after 5pm and on the weekends). They will also be compensated for the time spent waiting for a return call or text. It is important for supervisor to be clear when a response is needed and when a conversation is over.
Slide15
Training Outside Work Hours
Employees attending most meetings
&
trainings are entitled to compensation, unless all of the following are true:The training or meeting is outside normal working hours, Attendance
is
voluntary
and not required for the job,
The
meeting or training is not work related, and
No work is performed during the training or meeting. Slide16
General Overtime Rules
Any overtime anticipated or required must be pre-approved by the supervisor.
An official UTRGV overtime request form is available
on our website at: http://www.utrgv.edu/hr/_files/images/features/non-exempt-form.pdf. Departments may use another method to approve and track non-exempt employee overtime requests, when alternative methods are approved by departmental management.Unauthorized accrual of overtime is a violation of UTRGV HOP Section: ADM 04-406, Overtime for Non-Exempt Staff Employees, and may subject an employee to discipline or coaching. Please remember that even unauthorized accrual of overtime
must
be compensated.
Overtime is expected to be accrued at the assigned employee’s place of employment. Working from a personal residence, or telecommuting from another non-work site, is unauthorized.
W
ritten authorization by the UTRGV President, or his designee, to telecommute is required if this need arises.Slide17
Non-Exempt Employees On-Call
These are non-exempt employees who are required to visit a campus location, or work-site, to address an urgent business-related need.
Supervisors
make these requests for non-exempt employees to return to work outside the employee’s typical working hours only when a matter cannot be resolved during the employee’s typical work schedule (i.e., urgent need).The supervisor must establish that calling the employee was necessary to further University business needs. Slide18
Calling Employees To Return T
o
W
ork If a supervisor requires a non-exempt employee to return to work outside normal working hours, UTRGV will compensate the employee for a minimum of 2 hours or the actual time worked, that is in excess of 2 hours. The employee is compensated for two (2) hours regardless if the work assignment is completed in less time. For example, if an employee is required to be onsite to address a matter that takes 10 minutes of travel and 10
minutes to complete, the employee is still compensated for 2 hours.
Please see
UTRGV HOP Section: ADM 04-406, Overtime for Non-Exempt
Staff Employees.
http://
www.utrgv.edu/hop/policies/adm-04-406.pdf
Slide19
Lunch Breaks
The typical UTRGV work schedule is 8am to 5pm, Monday through Friday, with a one (1) hour lunch break. Supervisors may require non-exempt employees to take shorter lunch breaks for operational needs. Employees working eight hours must take a minimum of a 30 minute lunch.
Keep in mind employees will need to be compensated for the time they work.
For example: If Hector works 8am to 5pm and takes a 30 minute lunch break, he may take off the additional 30 minutes that he worked that same week. If he does not take the 30 minutes off that week, he would accrue an overtime balance. The 30 minutes converts to 45 minutes worth of overtime pay or equivalent time off.Lunch breaks cannot be used to reduce the daily work schedule.
For example, an employee taking a 30 minute lunch
break regularly
to arrive at work at 8:30am or leave at 4:30pm is not permissible.Slide20
Rest Breaks
Full-time employees are permitted two paid 15 minute breaks.
These two breaks cannot be combined.
Supervisors can set when these breaks are taken so long as one is in the morning and the other in the afternoon.Supervisors may allow part-time employees, who work a minimum of 3 hours, one paid 15 minute break.Rest breaks cannot be combined to extend lunch breaks or be used to start the day late or end the day early. If a break is not taken, employees are not entitled to additional compensation.Slide21
Resources
FLSA Questions
Contact HR Compensation at (956) 665-2451
Time Tracking & Reporting QuestionsContact HR Business Partners at (956) 665-2451 or email hrpartners@utrgv.edu Applicable Policies
ADM 04-105
Staff Work Hours and Rest Periods
ADM 04-406
Overtime for Non-Exempt Staff Employees
ADM 04-408
Time Records, Paycheck, Payday
ADM 10-602
Travel Policy
Online Resources
Department of Labor website
www.dol.gov
UTRGV Human
Resources website
http://
www.utrgv.edu/hr/index.htm
Slide22
Thank You!