1. MIRMA SPRING TRAINING 2014 PRESENTED BY JANE DRUMMOND WAGE AND HOUR LAWS EMPLOYMENT PRACTICS UPDATE

2. Wage and Hour Laws FLSA lawsuits hit a record high in 2013  Most common claim arising out of the employment relationship Three primary areas of concern: Minimum wage Overtime Recordkeeping

3. Wage and Hour Laws The basics: Missouri minimum wage is currently $7.50  Federal is $7.25 Non-exempt employee receives overtime at a rate of 1.5X regular rate

4. Wage and Hour Laws The Trouble Spots Failure to properly categorize exempt/nonexempt) Exempt Categories:  Executive  Administrative  Learned Professional  Computer  Outside Sales

5. Wage and Hour Laws Executive (must meet all of the following)  Salaried ($455/week or more)  Primary duty is managing the enterprise or a customarily recognized department of division  Must regularly supervise at least two or more FTEs  Must have authority to hire, fire and promote or at least have true input into such decisions

6. Wage and Hour Laws Administrative (must meet all the following)  Salaried ($455/week or more)  Primary duty must be performing office or non-manual work directly related to management or general business operations  Accounting, budgeting, quality control, procurement, marketing, safety, human resources, compliance  Primary duty includes exercising discretion and judgment with respect to matters of significance

7. Wage and Hour Laws Learned Professional (must meet all the following)  Salaried or fee basis ($455/week or more)  Primary duty must be performing work requiring advanced knowledge  Predominantly intellectual and requires consistent exercise of discretion and judgment  Knowledge must be in a field of science or learning and be acquired by a lengthy course of specialized education  law, medicine, accounting, engineering, architecture, sciences

8. Wage and Hour Laws Computer (must meet all the following)  Salaried or fee basis ($455/week or more)  Or $27.63/hour  Must be a systems analyst, programmer, software engineer or similar  Primary duty must consist of:  Application of systems analysis to determine functional specs for hardware software or systems;  Design, analysis, testing or modification of systems or programs

9. Wage and Hour Laws Outside sales  Primary duty must be making sales or obtaining orders for services or use of facilities  Must be regularly away from employer’s place of business

10. Wage and Hour Laws The Trouble Spots Recordkeeping

11. Wage and Hour Laws Must keep certain records about employees, hours and wages  Designation of workweek  Employee’s full name, gender SSN and address (inc. zip)  Birth date  If under 19  Occupation

12. Wage and Hour Laws Record keeping (cont.)  Hours worked each day  Hours worked each workweek  Basis on which wages are paid  Hourly, Weekly, Piecework, etc.  Regularly hourly rate  Total daily or weekly straight time earnings  Total overtime earnings for each workweek  All additions to or deductions from wages  Total wages paid each pay period  Date of payment and pay period

13. Wage and Hour Laws Record keeping (cont.) No particular form required, but must be readily accessible for DOL review For employees with a fixed schedule, can keep a record of exact schedule and indicate when followed  But must record actual time for any deviation

14. Wage and Hour Laws Record keeping (cont.) Retention: Keep payroll records for 3 years Keep all records supporting wage computations for 2 years  Time cards, schedules, etc.

15. Wage and Hour Laws The Trouble Spots Firefighters/EMTs/Law Enforcement

16. Wage and Hour Laws Firefighters/Law Enforcement (cont.) Fire protection personnel include firefighters, paramedics, EMTs, etc. who:  Are trained in fire suppression  Have legal authority and the responsibility for firefighting  Employed by a public fire department or district  Are engaged in preventing and putting out fires in emergency situations Ambulance service personnel that are not involved in firefighting activities do not fit this exemption

17. Wage and Hour Laws Firefighters/Law Enforcement (cont.) Law enforcement personnel include employees with legal authority to:  Enforce laws protecting peace, order, life and property  Prevent and detect crimes  And who have undergone law enforcement training

18. Wage and Hour Laws Firefighters/Law Enforcement (cont.) Firefighters and Law Enforcement may be paid OT by “work period” instead of workweek  In a 28-day period:  Firefighters are due OT after working 106 hours in 14 days  Police are due OT after working 86 hours in 14 days Actual calculation requires OT when hours worked bears same relationship to 212 hours (fire) or 171 (police) as number of days in work period bears to 28

19. Wage and Hour Laws Firefighters/Law Enforcement (cont.) Example: Work period equals 10 days. 10 days =.35714 of 28 days. Firefighters accrue OT when they work.35714 of 212 hours = 75 hours. Example: Work period equals 7 days. 7 days = 25% of 28 days. Police accrue OT when they work 25% of 171hours = 42.75 hours.

20. Wage and Hour Laws The Trouble Spots On Call Waiting to engage or engaged to wait?  Waiting to engage means employee is free to engage in purely personal pursuits until employer calls.  Engaged to wait means employee’s freedom of movement and activity are restricted. Engaged to wait is compensable work time and must be factored into overtime calculations.

21. Wage and Hour Laws The Trouble Spots Comp Time  Public entities can provide comp time in lieu of time-and- a-half

22. Wage and Hour Laws Comp time (cont.) Time off must be credited at 1.5 hours for each hour of overtime worked Can treat separate categories of employees differently Employee must agree to comp time arrangement  Can be condition of employment at time of hire  May notify employees and receive acknowledgement  Personnel handbook

23. Wage and Hour Laws Comp time (cont.) Nonexempt employees can accrue up to 240 hours of comp time  Public safety/emergency responders can accrue up to 480 Cannot be subject to “use it or lose it policy”  But can manage by sending employees home during slow periods/scheduling  Employees are allowed to use within a “reasonable” time after request, if it does not unduly disrupt operations

24. Wage and Hour Laws Comp time (cont.) When employment ends (for any reason), accrued time must be paid at greater of:  Employee’s average regular wage rate during the last three years; or  Employee’s final regular wage rate

25. Wage and Hour Laws Questions?