Fair Labor Standards Act

1
Fair Labor Standards Act

• New Revisions go into effect
• August 23, 2004

2
White Collar Exemption

• Provides exemption from both minimum wage and
  overtime pay for employees who are
• Executive
• Administrative
• Professional
• Certain Computer employees

3
Three Tests for Exemptions (to be exempt/salary)

• Salary Level 455.00 per week or 23,660.00 per
  year.
• Salary Basis not paid by the hour
• Job Duties

4
Executive Duties(Presidents Circle)

• Primary Duty is management of organization, dept
  or subdivision
• Customarily and Regularly directs work of 2 or
  more
• Authority to hire/fire or recommendations are
  given particular weight.

5
Administrative Duties

• Primary Duty is the performance of office or
  non-manual work directly related to the
  management or general business operations of the
  employer or the employers customers and
• Whose primary duty includes the exercise of
  discretion and independent judgment with respect
  to matters of significance.

6
Discretion and Independent Judgment

• Comparison and evaluation of possible courses of
  conduct, and acting or making a decision after
  possibilities have been considered.
• Exercised with respect to matters of
  significance which refers to the level of
  importance or consequence of the work performed.
• Decisions and recommendations may be reviewed at
  a higher level and on occasion, revised and
  reversed.

7
Discretion and Independent Judgment does not
include

• Applying well established techniques, procedures
  or specific standards described in manuals or
  other sources.
• Clerical or secretarial work
• Recording or tabulating data
• Performing mechanical, repetitive , recurrent or
  routine work.

8
Learned Professional Duties

• The employees primary duty must be the
  performance of work requiring advanced knowledge.
• In a field of science or learning
• Customarily acquired by a prolonged course of
  specialized intellectual instruction.

9
Advanced Knowledge

• Predominately intellectual in character
• Includes work requiring the consistent exercise
  of discretion and judgment
• The advanced knowledge is generally used to
  analyze, interpret or make deductions from
  varying facts or circumstances
• Not work involving routine mental, manual,
  mechanical, or physical work
• Cannot be attained at the high school level.

10
Creative Professionals

• The employees primary duty must be in the
  performance of work requiring invention,
  imagination, originality or talent in a
  recognized field of artistic or creative endeavor.

11
Prescott College Changes from Exempt to Non-exempt

• Admissions Counselors
• Assistant Registrars
• Financial Aid Counselors
• Student Activities Coordinator
• Warehouse Manager
• Academic Computing Support Specialist
• Hardware/Network Specialist
• Business Office Staff
• Library Circulation Supervisor

12
Non-exempt (hourly) Travel

• Non-exempt must be paid for all time considered
  "working time."
• Whether travel time is counted as working time
  depends on when the travel takes place and what
  kind of travel is involved.

13
Home to Work Emergency Situations

• During emergency situations, travel from home to
  work is work time.
• If an employee is called out after work at night
  to travel a substantial distance to perform an
  emergency job, travel time is working time that
  must be paid.

14
Home to Work Special Assignment1 day seminar

• Pay for time spent traveling to a seminar,
  training session, or work assignment that lasts
  for a day.
• You must also pay for all time spent at the
  seminar or training session, or
• while working on the assignment

15
Travel as part of the days work

• Time an employee spends traveling as part of
  their principal activity (travel from job site to
  job site during the workday).
• If an employee must report at a meeting place to
  receive instructions, perform other work, or pick
  up certain items for work, the travel from the
  meeting place to the work site is part of the
  day's work and counts as hours worked.

16
Overnight Travel

• If a non-exempt employee travels to a seminar,
  training session, or work assignment, and leaves
  the day before the seminar or work begins, you
  only have to pay for the travel time that
  (overlaps) the employee's regular workday (8-5).
• The employee is simply substituting travel for
  other work duties.

17
Non-Exempt Travel Time

• Travel time on nonworking days is also considered
  work time if conducted during normal work hours.
• If your employee is regularly scheduled to work 8
  a.m. to 5 p.m., Monday through Friday, travel
  time on a train, bus, airplane or in an
  automobile during these hours is hours worked on
  Saturday and Sunday, as well as on the other
  days.
• You may deduct normal meal periods from the
  travel time, as long as the employee does not
  perform work during the meal period.

18
Work Performed While Traveling

• Finally, travel time during non-work hours is
  considered work time that must be paid if the
  employee actually performs work while traveling.

19
Hourly/Non-exempt Travel Review

• Employees who travel on the same day they attend
  a seminar or perform work are paid for all the
  time spent traveling.
• However, employees who travel on one day and
  attend the seminar or perform the work the next
  day are compensated only for the time that cuts
  across their normal workday.

20
Problem Employees?

• Anytime worked, authorized or not must be paid.
• Progressive Discipline
• Have the employee's supervisor review his/her
  timecard every Tuesday morning. If working a full
  day will put him/her into an overtime status, let
  them work the remaining hours to fulfill the 40
  and then send them home.

21
Additional Work for PC (Non-exempt)

• If a non-exempt employee takes on additional work
  for the College (mentoring, modeling, graduation,
  independent studies, parents weekend, alumni
  weekend, orientations,etc.) the hiring dept. for
  the additional work will be responsible for the
  payment of overtime rates.
• Timecards must be turned in for this kind of work
  during the pay period in which the work was
  performed.
• A blended rate of the employees regular job and
  the hourly rate for the additional work will be
  used to determine the overtime rate.
• This also includes work study employees.