UNIVERSITY COMPENSATION PROGRAMS

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Presentation transcript:

UNIVERSITY COMPENSATION PROGRAMS Fair Labor Standards Act (FLSA): Non-Exempt Employee Timekeeping Compliance INDIANA UNIVERSITY

Non-Exempt Positions Compensated on an hourly basis Must track all hours worked Receive overtime compensation for all hours worked in excess of 40 hours in any given workweek. Overtime compensation at IU is at a rate of time and one-half either in the form of pay or compensatory time off

Timekeeping for Non-Exempt Positions Why non-exempt positions must track all hours worked What is/isn’t considered “work time” (compensable time) When performing normal day-in, day-out duties When attending a conference, training, or seminar When traveling When volunteering Expectations for supervisors/departments Expectations for non-exempt employees

Importance of Timekeeping The FLSA requires that positions classified non-exempt record time and receive overtime for any hours worked above 40 in a workweek Non-exempt employees are paid for all hours worked; thus, accurate timekeeping helps ensure compliance with the FLSA Accurate and timely reporting of work hours results in correct compensation for the employee IU non-exempt employees are expected to keep up-to-date (record time daily) timesheets.

What is Compensable Time? In general, “the period between the time on any particular day when such employee commences his/her “principal activity” and the time on the day at which he/she ceases such principal activity or activities. “The workday may therefore be longer than the employee’s scheduled shift, hours…” Work not requested but suffered or permitted to be performed is work time that must be paid. It is the duty of management to exercise control and see that work is not performed if it is not approved.

Compensable Time Waiting/On-Call Time: Employee is “engaged to wait” as part of principal activity/activities (Examples: bank teller, cashier, fireman)/ Employee is required to remain on call on the employer’s premises and/or employee is required to remain on call at home. Rest and Meal Periods: Not required by FLSA; however IU policy grants one paid rest period (15 min per half day worked) and an unpaid meal period (30 min per 6 hours worked). Conferences, Meetings, or Training Programs: If attendance is during normal work hours, required, directly job-related, and/or university work is conducted, the time is compensable. Generally, “work time” or compensable time is any time spent during the “work day” when an employee has not been completely relieved from his/her duties.

Travel Time Home to work travel: “An employee who travels from home before the regular workday and returns to his/her home at the end of the workday is engaged in ordinary home to work travel, which is not work time” “All in a day’s work” travel: “Time spent by an employee in travel as part of their principal activity, such as travel from job site during the workday, is work time and must be counted as hours worked” Home to work on a one-day assignment in another city: “The time spent in traveling to and returning from the other city is work time, except that the employer may not count the time that the employee would normally spend commuting to the regular worksite” Overnight/Travel away from home: Hours worked on regular working days during normal working hours, as well as required work time outside normal hours are considered work time. Time spent in travel outside of regular working hours as a passenger are not considered compensable.

Volunteer Time Services provided must be unrelated to employee’s position Services must be offered freely without pressure or coercion There should be no promise or expectation of compensation for volunteer services

Expectations for Supervisors/Departments Communicate with non-exempt employees about overtime mechanism used (pay or compensatory time) Communicate with non-exempt employees about work schedule expectations Approve overtime in advance Verify hours worked and time off Approve timesheet bi-weekly Department should retain timekeeping records

Expectations for Non-Exempt Employees Complete timesheets daily Record hours worked, compensatory time & time off Communicate with supervisor(s)/management about timekeeping expectations and/or flexible scheduling arrangements Seek approval before working overtime hours (any hours above 40 in a given workweek)

Timekeeping Resources Office of Financial Management Services – Payroll http://www.fms.indiana.edu/payroll Kuali Time Tutorials for Employees/Supervisors: https://fms.iu.edu/payroll/kuali- time/ FLSA Changes and UHR Communications: http://hr.iu.edu/salary/flsa2016.html University Human Resources – Compliance Resources http://www.hr.iu.edu/policies/compliance.htm U.S. DOL – Wage and Hour Division www.dol.gov/whd

University Human Resources Compensation Programs salaryiu@iu.edu