The Fair Labor Standards Act

Overtime &
Fair Labor Standards Act

 

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What is FLSA?

  • Federal law passed in 1938
  • Enforced by Department of Labor
  • Public employers became covered in 1986
  • Revised April 20, 2004
  • Covers
  • Overtime
  • Minimum Wage
  • Child Labor
  • Equal Pay
  • Recordkeeping

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Purpose of FLSA

  • Establishes minimum wage & overtime standards
  • Distinguishes between covered (non-exempt) and excluded (exempt) employees
  • Establishes overtime threshold (40 hr.)
  • Specifies record-keeping requirements

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Critical Terms

  • Hours worked
  • Work week
  • Regular rate

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“Hours Worked”

  • Principal job activity
  • “Suffer” or permit to work
  • Rest periods less than 20 minutes in duration (except lunch)

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  • Preliminary & postliminary activities
  • Meal?
  • On-call? Waiting to be engaged (with beeper; within 30 minutes; not drinking; cell phone; prepared to respond) = not compensable; Engaged to be waiting = compensable
  • Training time – depends on whether the benefit is for the employee or the employer
  • Commuting time – not covered
  • Call backs – not covered
  • Driving personal vehicle for overnight travel – not covered

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“Work Week”

  • 168 consecutive hours during a 7-day period

 

  • GMU standard work week:
  • 12:00 am Sun thru 11:59 pm Sat

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“Regular Rate”

  • Includes all forms of remuneration (e.g. shift differential, on-call pay, lump sum payments, 2nd job salary)
  • Converted to an HOURLY rate
  • Is particular to each work

week

 

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Types of Positions

 

    • Exempt – not covered by FLSA
    • Non-Exempt – covered under FLSA for time-and-one-half overtime

 

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  • Meet Salary Basis, Highly Compensated, Executive, Administrative, Professional, or Computer Professional test for exemption
  • Applies to each position individually based on duties and responsibilities, not to a class, Role, working title or category of position

 

Exempt Positions

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  • Classified in pay bands 4 and above if exemption tests are met (as well as Faculty)
  • No overtime payments required.
  • In extremely rare situations, may provide:
  • Compensatory time or straight-time pay for hours worked > 40 hours in a work week
  • Should be for short duration of time under special circumstances (vacancy, special project, etc.)

 

Exempt Positions

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    • Exempt employees paid for job, not hours worked

 

    • Must meet salary basis test

 

  • Salary must be more than $455 per week

 

Exempt Positions

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Exemption Test
Determination Factors

  • HR performs tests to determine “white collar” exemption by category
  • Executive
  • Administrative
  • Professional
  • Computer Professional
  • Highly Compensated

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Exemption Test
Determination Factors

  • Based on primary duties, not title
  • most important duties that account for 50% of time spent working
  • Regularly exercises discretion and independent judgment
  • Paid on a salaried basis for the job, not the number of hours worked

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Executive Test Criteria

  • Must be compensated on a salary basis of not less than $455 per week
  • Primarily manages a department or subdivision; and
  • Directs the work of two or more full-time employees
  • Has the ability to hire, fire & discipline or recommendation changes in status

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Changes in Status: promotions, etc

 

interviewing, selecting, and training of employees;

setting and adjusting their rates of pay and hours of work;

directing the work of employees;

appraising employees’ productivity and efficiency for the purpose of recommending promotions or other changes in status;

handling employee complaints and grievances;

disciplining employees;

planning the work; determining the techniques to be used; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked and sold;

providing for the safety and security of the employees or the property;

planning and controlling the budget;

and monitoring or implementing legal compliance measures.

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