1. FastFacts Feature Presentation Various We are using audio during this session, so please dial in to our conference line… Phone number: 877-468-2134 Participant code: 182500 © 2010 The Johns Hopkins University. All rights reserved.

2. Todays Topic Well be taking a look at… Fair Labor Standards Act (FLSA) Wage and Hour

3. Todays Presenters Sharon Kemp Director of Compensation Peter Tollini Director HR Consulting & Labor Relations

4. Session Segments Presentation –Pete and Sharon will discuss the Fair Labor Standards Act as it relates to wages and hours. –During their presentation, your phone will be muted. Q&A –After the presentation, well hold a Q&A session. –Well open up the phone lines, and youll be able to ask questions. –Pete and Sharon will answer as many of your questions as time allows. Laurice Royal and Nakita Green, JHHS Legal, will also be available to answer questions.

5. Contact Us If you would like to submit a question during the presentation or if youre having technical difficulties, you can email us at: fastfacts@jhu.edu fastfacts@jhu.edu You can also send us an instant message! –GoogleTalk – HopkinsFastFacts@gmail.comHopkinsFastFacts@gmail.com –AOL Instant Messenger – HopkinsFastFacts –MSN – FastFacts@jhu.edu

6. Survey –At the end of this FastFacts session, well ask you to complete a short survey. –Your honest comments will help us to enhance and improve future FastFacts sessions.

7. May 2010 7 Fair Labor Standards Act – FLSA Wage and Hour Fast Fact Session Presented by: Human Resources and Legal

8. Major Provisions Coverage Minimum Wage Overtime Pay Youth Employment Volunteers Interns Recordkeeping 8

9. Minimum Wage: Basics Covered, non-exempt employees must be paid not less than the federal minimum wage for all hours worked The minimum wage is $7.25 per hour effective July 24, 2009 9

10. Compensation Included Wages (hourly rate) Non-discretionary bonuses Shift Differentials (evenings/nights/weekends) On-call rate Callback hours worked 10

11. Deductions Deductions from pay are illegal if: –Deduction is for an item considered primarily for the benefit or convenience of the employer; and –The deduction reduces employees earnings below required minimum wage Examples of illegal deductions Tools used for work Damages to employers property Cash register shortages 11

12. Hours Worked Suffered or Permitted Pre-shift/Post Shift Activities Waiting Time On-Call Time Meal and Rest Periods Training Time Travel Time Sleep Time 12

13. Suffered or Permitted Work not requested but suffered or permitted is work time 13

14. Pre-Shift/Post-Shift Activities If the employer knows or has reason to believe that the work is being performed, the employer must count the time as hours worked. For example, if the employer does not stop an employee from working before or after the shift, the employee must be paid for that time. 14

15. Waiting Time Counted as hours worked when: Employee is unable to use the time effectively for his or her own purposes; and Time is controlled by the employer Not counted as hours worked when: Employee is completely relieved from duty; and Time is long enough to enable the employee to use it effectively for his or her own purposes 15

16. On-Call Time On-call time is hours worked when Employee has to stay on the employers premises Employee has to stay so close to the employers premises that the employee cannot use that time effectively for his or her own purposes On-call time is not hours worked when Employee is required to carry a pager Employee is required to leave word at home or with the employer where he or she can be reached 16

17. Meal and Rest Periods Meal periods are not hours worked when the employee is relieved of duties for the purpose of eating a meal Rest periods of short duration (normally 5 to 20 minutes) are counted as hours worked and must be paid 17

18. Training Time Time employees spend in meetings, lectures, or training is considered hours worked and must be paid, unless: Attendance is outside regular working hours, and Attendance is voluntary, and The course, lecture, or meeting is not job related, and The employee does not perform any productive work during attendance. 18

19. Travel Time Ordinary home to work travel is not work time Travel between job sites during the normal work day is work time Special rules apply to travel away from the employees home community 19

20. Sleep Time Less than 24 hour duty Employee who is on duty for less than 24 hours is considered to be working even if allowed to sleep or engage in other personal pursuits Duty of 24 hours or more Employers can exclude bona fide sleep and meal periods 20

21. Overtime Pay Covered, non-exempt employees must receive one and one-half times the regular rate of pay for all hours worked over forty in a workweek 21

22. Workweek Compliance is determined by workweek, and each workweek stands by itself Workweek is 7 consecutive 24 hour periods (168 hours) JHHSC/JHH's workweek begins at 7:00 a.m. each Sunday 22

23. Regular Rate l Is determined by dividing total earnings in the workweek by the total number of hours worked in the workweek l May not be less than the applicable minimum wage 23

24. Regular Rate Exclusions Sums paid as gifts Payments for time not worked Reimbursement for expenses Discretionary bonuses Retirement and insurance plans Overtime premium payments 24

25. Regular Rate (RR) Step 1: Total Straight Time Earnings (Minus Statutory Exclusions) 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 25

26. Example: Hourly Rate + On-call Pay Total Hours = 48 Hourly Rate = $14.50 On-call 16 hours at $4.35/hour = $69.60 48 hours x $14.50= $696.00 On-call + 69.60 $765.60 $765.60 / 48 hrs = $15.95 (Regular Rate) $15. 95 x.5 = $7.98 $7.98 x 8 hrs = $63.84 (Overtime Due) 26

27. Example: Different Hourly Rates Janitor Rate $11.25Janitor Hours 21 Cook Rate $14.50Cook Hours 26 21 hours x $11.25 = $236.25 26 hours x $14.50 = $377.00 $613.25 $613.25 / 47 hours = $13.05 (Regular Rate) $13.05 x 0.5 = $6.53 $6.53 x 7 hours = $45.71 (Overtime Due) 27

28. Bona Fide Deductions A deduction may be made if: l It is made for particular items under a prior agreement, and l The purpose is not to evade statutory overtime requirements or other laws, and l It is limited to the amount above the highest applicable minimum wage for the first 40 hours 28

29. Deductions From Exempt Employees An employer may not dock an exempt employees pay. In addition, if an exempt employee is ready, willing and able to work, deductions may not be made for time when work is not available. 29

30. Permissible Deductions from Exempt Employees Seven exceptions from the no pay-docking rule 1.Absence from work for one or more full days for personal reasons, other than sickness or disability 2.Absence from work for one or more full days due to sickness or disability if deductions made under a bona fide plan, policy, or practice of providing wage replacement benefits for these types of absences 3.To offset any amounts received as payment for jury fees, witness fees, or military pay 30

31. Permissible Deductions from Exempt Employees (cont.) 4.Penalties imposed in good faith for violating safety rules of major significance 5.Unpaid disciplinary suspension of one or more full days imposed in good faith for violations of written workplace conduct rules 6.Proportionate part of an employees full salary may be paid for time actually worked in the first and last weeks of employment 7.Unpaid leave taken pursuant to the Family and Medical Leave Act 31

32. Safe Harbor The exemption will not be lost if the employer : Has a clearly communicated policy prohibiting improper deductions and including a complaint mechanism Reimburses employees for any improper deductions; and Makes a good faith commitment to comply in the future Unless the employer willfully violates the policy by continuing to make improper deductions after receiving employee complaints 32

33. Youth Employment Federal youth employment rules set both hours and occupational standards for youth 33

34. Youth Employment 16Sixteen- and 17-year-olds may be employed for unlimited hours in any occupation other than those declared hazardous by the Secretary of Labor 14Fourteen-and 15-year-olds may be employed outside school hours in a variety of non- manufacturing and non-hazardous jobs for limited periods of time and under specified conditions Under 14 Children under 14 years of age may not be employed in non-agricultural occupations covered by the FLSA 34

35. Student Interns-Trainees If all of the following criteria apply, Interns or Trainees are not employees within the meaning of the FLSA if: Training is similar to that given vocational school; Training benefits Interns/Trainees; Interns/Trainees do not displace regular employees, and work under close supervision; Employer receives no immediate advantage Interns/Trainees are not entitled to a job The parties understand that the Interns/Trainees are not entitled to wages 35

36. Volunteers An individual will be considered a volunteer under the FLSA if the individual: 1)performs hours of service for civic, charitable, or humanitarian reasons, without compensation 2)offers services freely and without pressure or coercion; and, 3)is not otherwise employed by the same organization to perform the same type of services. 36

37. Recordkeeping An accurate record of the hours worked each day and total hours worked each week is critical to avoiding compliance problems The FLSA requires that all employers subject to any provision of the Act make, keep, and preserve certain records 37

38. Recordkeeping Every covered employer must keep certain records for each non-exempt worker Records need not be kept in any particular form Time clocks are not required 38

39. FLSA Violations U.S. Department of Labor (DOL) enforces FLSA Burden of proof is on employer If a violation is found to be willful, employees can sue for recovery of back wages and liquidated damages for up to 3 years Employer cannot retaliate against employee for whistle blowing 39

40. Resources HR Policies especially HR 701 Hours Worked by Nonexempt Employees; HR 300 Compensation; HR 601 Attendance Management; HR 326 Paid Time Off; HR327 Holidays Office of Compensation HR Consulting and Labor Relations KRONOS Resources Nightingale Resources 40

41. Were going to open the phone lines now! There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. Well be answering questions in the order that we receive them. Well also be answering the questions that were emailed to us during the presentation. If theres a question that we cant answer, well do some research after this session, and then email the answer to all participants. Q&A

42. Thank You! Thank you for participating! We would love to hear from you. –Are there certain topics that you would like us to cover in future FastFacts sessions? –Would you like to be a FastFacts presenter? –Please email us at: fastfacts@jhu.edufastfacts@jhu.edu

43. Survey Before we close, please take the time to complete a short survey. Your feedback will help us as we plan future FastFacts sessions. Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/ http://connect.johnshopkins.edu/fastfactssurvey/ Thanks again!