1. FLSA, Classification, & Compensation Policies

2. What is FLSA?
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.
For more in-depth information about the FLSA, visit the Department of Labor at or view the PowerPoint in BlazeView.

3. Can anyone name the most common exemptions for FLSA?
Executive Employees
Administrative Employees
Professional Employees (including Creative Professionals)
Outside Sales Employees
Computer Employees

4. Is travel time to a mandatory training considered compensable time
Is travel time to a mandatory training considered compensable time? Explain
It depends. According to FLSA, any time spent traveling to a meeting place beyond the normal commute to work is compensable. In addition, any traveling to a mandatory meeting outside of the normal scheduled work week is compensable. Finally, if travel occurs during the normal working hours it is considered compensable.

5. Review
Suppose a non-exempt worker holds two part-time jobs on campus, one position he works 25 hours a week at a rate of $10/hr and his other position he works 20 hours a week at a rate of $12/hr. How would you calculate his overtime?
25 hours x $10/hour= $250
20 hours x $12/hour= $240
$490
$490/45 hours = $10.89/hourly average
45 hours- 40 hours = 5 hours of overtime
5 hours x .5($10.89) = $27.26
$490 + $27.26 = $517.26

6. Recent Cases Hofstra University, New York (2011)
Hofstra University was found in violation of FLSA minimum wage and overtime.
Cost $485,000
Of the $485,000, $200,000 went to the claim, the other $285,000 was enhancement fees, administrative costs, and attorney fees.
VSU’s graduate assistants get at the minimum a stipend of $1,680 per semester, while working 14 hours per week.
14 hours per week multiplied by 16 weeks = 224 total hours.
$1,680/224 hours = $7.50 per hour which is above minimum wage.
The important thing to note is to not allow students to work past their weekly hours which would likely result in a violation of minimum wage.
Originally the DOL guidelines do not cover GAs that have a stipend, this court ruling overturned that. It is important to note that not all GAs are classified the same way.

7. Recent Cases University of Phoenix (2010)
The case involved a class action lawsuit of admission counselors.
Claimed unpaid “off-the-clock” overtime.
Claimed the University of Phoenix paid wrong overtime amount.
Claimed the University of Phoenix provided inaccurate pay stubs.
University of Phoenix settled and paid a claim of $3,500,000.
Remember anything done related to work even done at home is considered compensable time.

8. Internships and FLSA
In order for an internship to not be considered employment, and therefore not covered by FLSA, the following six criteria must be met.
The training is similar to what would be given in a vocational school or academic educational instruction;
The training is for the benefit of the trainees or students;
The trainees or students do not displace regular employees, but work under their close observation;
The employer that provides the training derives no immediate advantage from the activities of the trainees or students, and on occasion the employer’s operations may actually be impeded;
The trainees or students are not necessarily entitled to a job at the conclusion of the training period; and
The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.

9. Class Exercise: Who is exempt or non-exempt?
Receptionist
Administrative Secretary
Faculty Member
Grounds Keeper
Grounds Keeper Manager
Bus Driver
Admissions Recruiter
Buildings Service Staff
Research Analyst II
Student Assistant
Graduate Assistant
Intern
Non-Exempt
Exempt
Depends on proportion of job duties
Depends on job duties

10. CONTACT HR IMMEDIATELY
If you EVER have a question regarding overtime, minimum wage, or FLSA status follow these two steps:
STOP
CONTACT HR IMMEDIATELY

11. Classification & Compensation

12. Classified Personnel
Exempt – Employees who are not eligible for overtime pay based on their job description.
Non-Exempt – Employees who are eligible for overtime pay based on their job description. Employers are REQUIRED to pay overtime!

13. Overtime
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.
Each workweek stands alone and cannot be averaged over a two week period. For example, if Alicia works 44 hours the first week and 32 hours the second week, she is eligible for 4 hours of overtime pay for the first week. Her hours cannot be averaged to avoid paying overtime.

14. Definitions
Classification- The designation of a new position to an appropriate class based upon overall duties, complexity, and responsibility of assigned work.
Compensation- All forms of pay going to employees and arising from their employment
There are certain situations in our work setting where a change in classification status is justified. Compensation is based on pay grade level within a specific classification.

15. 4 Categories of Class./Comp. Changes
1. Initial Appointments
2. Reclassifications
3. Reorganizations
4. Pay Increases
IMPORTANT
All salary changes are pending budgetary funding within the various departments.

16. Initial Appointments CAUTION
For any new appointment a position request should be submitted in PeopleAdmin. The request must be approved in Position Management prior to posting.
New employees are assigned a starting rate of pay based on the VSU Wage and Salary Schedule (see form in BlazeView Course/form is updated routinely on website to show changes such as new positions, etc.).
Starting salary can be 10% above min. of Pay Grade due to exceptional training or experience with documented justification.
CAUTION
Initial Salaries above the minimum should be scrutinized due to:
Salary Compression- When new hires are brought in at higher salary levels than incumbents.
Morale within department due to discrepancy between coworkers.

17. Reclassifications There are 2 types of Reclassifications:
1. Requests initiated by Department
This occurs when there is a significant and permanent change in the duties of a position that are different from what they currently perform while on the job. This does not necessarily mean the inclusion of more work, rather this means the change of job tasks.
2. Requests initiated by HR
Possible reclassification of all individuals within a job title. This generally occurs when a classification audit is performed. This can be influenced by market demand for the position.
When do these occur?
Reclassifications can be submitted anytime throughout the year as needed. The reclassifications are then reviewed by HR as they are submitted.

18. Reorganizations
This occurs when there is a change in the operational structure of a department and all positions within the department.
This involves changes in job duties of TWO OR MORE departmental positions.
The key difference between a reorganization and a reclassification is that in the reorganization the whole department is affected whereas with the reclassification it focuses on an individual position.

19. Pay Increases (4 Types)
1. Merit and Cost of Living (Administered by BOR)
Merit is a percent range based on performance.
Range is determined by Budget.
Cost of Living is a set figure for all classifications.
2. Promotions
Existing position with a higher pay grade is open.
Duties with greater responsibility are added to a department and a reclassification for a position is approved with a higher pay grade.
New position with a higher pay grade is added to a department and someone within the department is hired into the position.

20. Pay Increases 3. Acting/Interim Assignment
Temporary pay increase may be given to an employee who is asked to take on the responsibilities of a higher level position for a limited time period.
4. Additional Pay Adjustments
Must complete an Additional Pay Request in PeopleAdmin.
Situations Warranting Pay Adjustments:
Additional responsibilities are assigned but not enough to warrant a reclassification.
Market conditions discovered.
Completion of specialized education, training, or experience that adds productivity or capability to the duties of a position.
Salary Compression (Salaries are too close together)
Salary Inversion (Newly hired employees are paid more than senior employees)
Superior Performance (both in quality and quantity of work performed.)

21. Important Forms Found in BlazeView
Additional Pay Adjustment Form (This is now done online in PeopleAdmin)
Position Management Form (Still used for Graduate Assistants, all other positions will complete a new position request via PeopleAdmin)
Reclassification Form (This is now done online in PeopleAdmin)
VSU Wage and Salary Schedule (updated form on Class and Comp web page)

22. Website Resources
VSU Human Resources Website-
Classification and Compensation services/compensation-and-classification/
VSU Financial Services Website