Fair Labor Standards Act The Final Rule Department of Human Resources November 2016

Today’s Agenda Terms and Definitions New DOL Regulation Overtime Rule What You Need to Know Recordkeeping Requirements Questions

Terms and Definitions FLSA – Fair Labor Standards Act DOL – Department of Labor Overtime – any hours worked over 40 in a given workweek; paid at 1.5 times their regular rate Non-exempt – entitled to overtime pay under the FLSA Exempt – excluded from overtime pay under the FLSA Compensable time – any time the employer permits or allows an employee to perform the activity WKU’s Workweek – 12:01 a.m. Monday through 12 midnight on the following Sunday

New DOL Final Rule Goes into effect December 1, 2016 Sets the non-exempt salary threshold at $913 per week; $47,476 annually (formally $23,600) Employees below the salary threshold classified as non-exempt Rules for non-exempt haven’t changed, only the salary threshold has changed

Overtime An employee works overtime when hours worked exceeds 40 in a given workweek; OT is paid at 1.5 x regular rate WKU’s standard workweek is 37.5 hours; therefore any time worked between 37.5 – 40 hours in a given workweek is paid at straight time (regular rate) There are 2 options available when an employee works hours causing overtime to accumulate

Option 1 1. Pay overtime when worked: Any hours worked beyond 40 in a work week will be paid at time and one-half Hours worked during two or more workweeks may NOT be combined or averaged to determine overtime pay due Should be pre-approved with Supervisor Provisions also apply when an employee works in more than one University department

Option 2 2. Alternative Work Arrangements Policy 4.2501 Flextime – flexible work schedules during a 37.5 hour workweek which permit variable daily start and end times Compressed Workweek – workweek (totaling 37.5 hours) that is condensed into fewer than five days * Compensatory time off in lieu of earned overtime pay is prohibited by Kentucky law

What You Need to Know Working at home outside of regular hours Non-exempt staff are paid for the hours they actually work and includes all Compensable Time worked Working at home outside of regular hours Travel is considered compensable when: It cuts across the employee’s workday The employee is required to remain on the premises Performing work duties during a meal period *Travel guidelines available on our website

Recordkeeping under the FLSA Employers must keep a record of hours worked for each non-exempt employee Records must include the hours worked each day (to the nearest quarter hour) and the total hours worked each workweek Employees report hours worked each week using the semi- monthly timesheet (available on the HR website) Departments/Unit Heads are responsible for maintaining this record in departmental files for a period of 3 years

Semi-Monthly Timesheets

Additional information available on our website: Questions? Additional information available on our website: http://www.wku.edu/compensation/flsa.php