belongings, bank accounts, investments, and other assets. ... •Fiscal year end will pay out anything in comp 'bank'. *Any Comp Time Payout is ... Payroll - eTime ...
2016 FLSA Changes SUPERVISOR’S TRAINING SESSION
Agenda • Changes and FYI • Compensatory Time Off • Payroll e-Time • Resources and Contact information
Definitions • FLSA – Fair Labor Standards Act • Non-Exempt – Employees who are eligible for overtime pay • Exempt – Employees who are NOT eligible for overtime pay • Compensatory Time Off (Comp. Time) - an arrangement by which eligible employees are entitled to time off in lieu of overtime pay. It accrues similar to overtime at a rate of 1.5 per 1 hour over 40 hours of work in a workweek.
• Flexible Time - Work practice that allows employees a certain degree of freedom in deciding how the work will be done and how they'll coordinate their schedules with those of other employees. The supervisor sets certain limits such as minimum and maximum number of hours of work every day, and the core time during which all employees must be present. All Flex schedules must be approved by the supervisor and their respective VP. Overtime - time in addition to what is normal, as time worked beyond one's scheduled working hours. Normally paid at 1.5 an employee’s normal rate of pay.
How this impacts you and your employees THE STRUGGLE IS REAL
• Possible Change in flexibility
• Non-exempt employees compensated for ot
• Supervisors must manage workflow more efficiently while retaining effectiveness
• Can lead to innovative improvements
• Employee may feel downgraded
• Better data on job requirements/duties
• Additional tasks to accomplish
• Enhances employee connectedness to leader
• Growth opportunity for all involved
What is compensable? • Emails, calls, and texts outside of standard work hours • Approved professional growth and development • Job-related Training (VSU or offsite), committee work, senate, lectures, campus associations
• Time spent traveling* for work/permitted work related activities • Working lunches or completing work during lunch • Any overtime completed, whether approved or not
What is not* compensable?
• employee wishes to attend a non-work related event on campus (party, etc) • Employee wishes to take uco/outside training course to increase non-work related skills • Employee eats lunch at desk without completing work and is briefly interrupted • employee takes a ‘long lunch’, outside of the lunch break policy guidelines • Employee calls or texts you to let you know that they will be late/miss work that day
How important is the timecard, really?
Really Really Really Important
As a supervisor, you can be personally held liable for employment decisions, including legal violations, depending on how a law defines the term “employer”.
The Fair labor standards act defines an employer as “any person acting directly or indirectly in the interest of an employer in relation to an employee”. Personal liability refers to civil actions brought by a claimant where any monetary award rendered for the claimant may be satisfied from the personal assets of the defendant, including home, belongings, bank accounts, investments, and other assets. Supervisor must monitor and approve timecards.
What steps can I take to avoid these personal liabilities? • Know the law • Follow company policies and procedures • Be as consistent as reasonably possible • Appropriately compensate employees for time worked (suffer/permit) • Hold employees accountable for timely timesheet entry/approval • Maintain confidentiality of employee discipline • Utilize human resources as a partner
What policies should I revisit? Overtime policy *recently updated*
Lunch and other break policy
• Overtime must be approved by director
• Full time employees receive 1 hour per day
• Prefer employee to rearrange workweek
• Part time : 30 minutes to 1 hour per day
• “comp time” earned at 1.5 for 40+ hrs worked
• All lunch breaks are unpaid time
• Vacation and sick do not count towards OT
• Cannot be accumulated
• Comp Time capped at 240 hours in Fiscal Year (Supervisor manages) • Used prior to vacation and Sick time ** • Overtime wages require prior approval
• Up to two daily breaks (15 minutes max)*
• Cannot shorten workday or workweek
Flex Time Departments can still utilize Flexible Scheduling for their employees.
If hours exceed 40 hours it will be banked as comp. Time
VACATION CASH OUT REQUEST OPTION • • • • • •
Only accrued annual leave and “floating” holiday leave may be used. Employee can not use nor convert sick leave for this purpose. One-time only opportunity limited to affected employees. Voluntary for those employees who elected to exercise the option. May exercise this option anytime between November 1, 2016 through June 9, 2017. Employees with fewer than 48 hours would be allowed to use their full available annual leave balance. • Employees would not be able to buy the hours back at a later time. • Employees would receive the vacation and/or “floating” holiday leave along with their regular pay for hours worked. • Higher tax rate applies
Vacation Cash Out Request Form
Deadline: June 9, 2016
Comp Time Information* • Accrues at 24o hours in a fiscal year (time and a half technically 160 hours) • Pays out anything above 240 in any given payroll (241 will pay out 1 hour of comp time at time and a half) • Fiscal year end will pay out anything in comp ‘bank’. *Any Comp Time Payout is paid from the Departmental Budget
How to manage comp time accrual • Comp time is not intended to be saved/accumulated
• Employees who do not take time off are more prone to burnout and/or cover-ups • Supervisors must allow the use of comp time unless it would create an undue hardship for their department • Supervisors should encourage employees to take comp time • Supervisors need to make sure employees know it is required to take comp time in lieu of Vacation and Sick Time *Any Comp Time Payout is paid from the Departmental Budget
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WHAT’S NOT CHANGING • Benefits • Including retirement
• Job duties and responsibilities
• Annual salary for those transitioning to non-exempt • Value and worth to the organization
What are my next steps? Start by having a conversation with impacted employees: • What will be your new normal? • How will you partner for success during this transition?
Don’t forget – we are here to help! Jamie Tanner, Employee Relations Manager
Jamae Flint, Payroll Manager
Ernest Smith, Classification & Compensation Analyst