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1 Educational Purposes Only - 1

2 In this Guide About this Guide 2 Fair Labor Laws and Policy at UAB 3 Nonexempt and Exempt Status 4 Managing Nonexempt and Exempt Employees _ 5 Paid Time 5 Recordkeeping 6 Overtime 7 Nursing Mothers 7 ABOUT THIS GUIDE This resource guide is for educational purposes only and is not intended as an exhaustive discussion of the Fair Labor Standards Act (FLSA) and other policies. In addition, since each situation can vary and the applicability of federal and state laws is based on facts and circumstances, the applicability of laws and policies in your situation may vary. Detailed information can be found online at Common FSLA Misconceptions 8 Breaks and Meal Periods 8 FLSA Contacts and Resources 9 FLSA Definitions 11 This guide is maintained by UAB Training and Development. To make updates or recommend changes, please contact Please direct FLSA questions to: Your Human Resources Consultant HR Compensation HR Relations Educational Purposes Only - 2

3 FAIR LABOR LAWS AND POLICY AT UAB Fair Labor laws and policies ensure that every employee is treated fairly and accurately compensated for their time worked. Fair labor practices include the federal Fair Labor Standards Act (FLSA) as well as some UAB policies. The federal Fair Labor Standards Act (FLSA) applies to all full-time and part-time UAB employees and establishes the following: Minimum wage rate Overtime pay Recordkeeping Youth employment standards Nursing mother breaks The law distinguishes work as nonexempt or exempt. As a result of FLSA, there are differences in the way that you will manage and record time for your nonexempt and exempt employees. UAB Human Resources makes sure that all positions meet the minimum wage requirement and all applicants meet the youth employment standards. Since this is the case, this guide will focus on the role and responsibilities that supervisors have in managing overtime pay and recordkeeping. Important Note - Supervisor s Responsibility As a supervisor, it is your responsibility to understand governing fair labor laws and UAB s policies. In addition, you should know the exempt or nonexempt status of each of your employees. If you are unsure about your employee s status, contact UAB Human Resources for assistance. Federal law requires that you manage the time of nonexempt and exempt employees differently. You should understand how this affects the way you record time off and overtime for each employee. Take time to talk with your employees about fair labor laws and policies and answer any questions. Help them to understand that FLSA requires that certain positions record time differently. Remember, fair labor laws are designed to protect employees from abuse and to ensure fairness. It is important that your employees understand and adhere to the laws and policies. Educational Purposes Only - 3

4 NONEXEMPT AND EXEMPT STATUS At UAB we often differentiate nonexempt and exempt status based on employees defined pay and pay schedule. Nonexempt employees are paid hourly and receive bi-weekly pay, while exempt employees are paid a salary and receive monthly pay. UAB Human Resources is responsible for determining the exemption status for positions at UAB. This complex process consists of analyzing the primary purpose and tasks of a job, researching and comparing similar positions and sometimes consulting legal advice. The status for most positions you manage has already been determined. If you create a new position or change the responsibilities for one of your current positions, you will need to contact Human Resources to assist you with determining the exemption status. Your Human Resources Consultant can help you get started. It is helpful to understand the types of work that have been defined as nonexempt or exempt under FLSA. Nonexempt and exempt positions may include but are not limited to the examples listed below. Nonexempt (Bi-weekly paid) Examples Employees in nonexempt positions often explain procedures, apply policy and are usually supervised. They are important in representing UAB to the public and in carrying out our daily activities. Office Coordinators Customer service workers Skilled trades Service maintenance Pharmacy assistants Technical and clerical positions Production workers Exempt (Monthly paid) Examples Employees in exempt positions create, interpret and apply policy, decide what the organization will do, exercise discretion about significant matters and often manage other employees. Some exempt positions may require advanced degrees. Program Administrators Financial Analysts Creative Services Certified Public Accountants Scientists Researchers Executives Educational Purposes Only - 4

5 MANAGING NONEXEMPT AND EXEMPT EMPLOYEES Paid Time Nonexempt (Bi-weekly paid) employees Nonexempt employees are only paid for their hours worked. The only exception to this is when employees take accrued paid time off for absences such as vacation and sick leave. UAB is not required to pay nonexempt employees for days when we do not require them to be at work even if it is part of their regular schedule. Nonexempt employees must also be paid for waiting time, on-call time, and sleep time if the employee s time is controlled by UAB s needs and he or she is not able to use the time for their own purposes. UAB may also be required to pay nonexempt employees for some lectures, meetings, training, and travel time. Always contact your HR consultant or Compensation if you have questions about nonexempt employees and their paid time. Exempt (Monthly paid) employees Exempt employees must be paid their regular predetermined wage each month regardless of the quality or amount of work performed. The following exceptions are the only reasons a monthly paid employee could be paid less than their monthly wage: Full days absence for personal reasons (other than sick or disability) when no accrued leave time is available Full days absence for sickness or disability if the employee has replacement benefit pay for these types of absences Deductions in pay for violating safety rules of major significance To offset payment received for jury duty, witness fees or military pay Any time not worked in the first or last weeks of employment at UAB Unpaid leave as define in the Family and Medical Leave Act (FMLA) Educational Purposes Only - 5

6 Recordkeeping Nonexempt (Bi-weekly paid) employees - FLSA requires UAB to record wages, hours worked and other basic employee information for nonexempt positions. You should make sure that employees keep accurate records of all time worked and inform UAB of any changes to personal information (example: name change, address, phone number). Different departments use various methods of recording hours worked. Some use an automated time and attendance system and others an electronic or manual time sheet. While it is your employee s responsibility to record their time accurately, you also have a responsibility to check time records for accuracy. Don t Make These Recordkeeping Mistakes for Nonexempt Positions Fail to keep a timesheet or timecard Fail to require and record clockin and clock-out Fail to keep record of unauthorized overtime Fail to keep records about work performed off the clock such as weekend or at home work Exempt (Monthly) employees - While FLSA does not require UAB to keep records for exempt employees, UAB does keep wage and personal information about all UAB employees as a good business practice and in compliance with other laws and regulations. FLSA does not allow UAB to track an exempt employee s hours worked unless it is related to project or effort reporting. Requiring your exempt employees to track their arrival and departure time could result in a complaint which would change the status of that position and result in penalties for UAB. You are allowed to require your exempt employees to keep a regular schedule. You can also implement across-the-board schedule changes if necessary. Since exempt employees are not required to track their hours worked, they do not need to record requested time off that is less than four hours (example: doctor s appointments, teacher s meetings.) Educational Purposes Only - 6

7 Overtime Nonexempt (Bi-weekly paid) employees - You need to make sure that nonexempt (bi-weekly paid) employees record all actual time worked through their record keeping method. Nonexempt employees record their time so they can be paid appropriately when they work overtime. FLSA requires that nonexempt employees be paid overtime pay of 1.5 times the employee s hourly rate for any work performed over 40 hours in a UAB workweek. You should clearly communicate with your nonexempt employees the procedures for recording time and working overtime. A nonexempt employee should not begin working early or work overtime without your approval. The law requires you to pay for any and all work your employee does so you need to be clear about your expectations. If you require your employees to request permission to work overtime, you can discipline them if they work without permission, but you still must pay them for their time. UAB does not encourage the use of comp time instead of overtime pay. If you have questions about the use of comp time contact your HR Consultant or HR Relations. Employees with Multiple UAB Positions If a nonexempt employee works two jobs in different areas of UAB (Example: University and Hospital) they are still considered to work for one employer. UAB payroll is required to pay overtime for all hours worked paid over 40 in a workweek regardless of which position they were worked. Example: An employee works 20 hours in the Hospital and 30 hours for the University. Ten of these hours are considered overtime. Exempt (Monthly paid) employees Exempt employees are not eligible for overtime pay under FLSA. You should let your exempt employees know that it may be necessary for them to work additional hours outside their regular schedules to meet business needs without additional pay. Nursing Mothers Nonexempt (Bi-weekly paid) employees - FLSA requires UAB to provide a reasonable break time for mothers to express breast milk for her nursing child up to one year after the child is born. The mother is allowed to take an unpaid break each time she needs to express milk (or a paid break if it is her usual paid break time.) UAB is required to provide a place to express milk (other than a bathroom) that is shielded from view, free of interruptions from coworkers or the public and readily available to the employee. Exempt (Monthly paid) employees FLSA does not require UAB to provide a break time for exempt mothers to express breast milk. Most UAB departments are capable of allowing exempt employees time to express breast milk without interfering with daily business. It is good business practice to allow your exempt employees time to express milk as needed in a place that is shielded from view, free of interruptions from coworkers or the public and readily available to the employee. Educational Purposes Only - 7

8 COMMON FSLA MISCONCEPTIONS There are many misunderstandings about what FLSA does and does not cover. The following employment practices are not covered by law under FLSA: Meal or rest periods Holidays off or vacations Vacation, holiday, severance or sick pay Premium pay for weekend or holiday work Pay raises or fringe benefits A discharge notice or reason for discharge Limit the number of hours an employee aged 16 or older can work in the workweek As an employee-friendly workplace, UAB policy does define these employment practices and more in the UAB Policies and Procedure Library. To learn more about these policies visit Breaks and Meal Periods One important UAB employment practice to understand is the break policy. You do not have to guarantee your employees a break. However if the workload allows, it is good practice to give your employees breaks which are paid. Breaks should be limited to two 15 minute breaks a day and should not be saved to leave work early or extend or replace a lunch period. Meal periods should be added to an employee s schedule and are unpaid as long as they are at least 30 minutes long and the employee is relieved of all duties and not interrupted. You should not allow nonexempt employees to eat and work at the same time. If this occurs it should be counted as hours worked and your employee should be paid for this time. Educational Purposes Only - 8

9 FLSA CONTACTS AND RESOURCES Resource Contact Information Helps You Understand HR Consultants UAB Human Resources Compensation UAB Human Resources Relations University: /departments/consultants UAB Hospital: /departments/consultants Phone: (205) Fax: (205) Website: Phone: (205) Fax: (205) Website: - Help understanding policy - Questions about specific situations - Understand position status - Forms required to refill, reclassify or establish new positions - Policy interpretation - FLSA problem solving UAB Policies Website: - Official UAB overtime, recordkeeping and break policy Department of Labor Wage and Hour Division Fair Labor Standards Act (FLSA) Website: - Basic Information - Fact Sheets - E-tools - Posters Educational Purposes Only - 9

10 WANT MORE HELP? HERE S A MANAGING BI-WEEKLY AND MONTHLY QUICK GUIDE Bi-weekly Monthly FLSA Status Nonexempt Exempt Our work volume is low and I don t need all of my employees today. Do I need to pay my employee for time not required to come into work? Do I need to record arrival and departure time for my employee? Do I need to record and pay overtime for my employee? Do I need to record time off work of less than 4 hours for my employee? Example: Doctor s appointment Do I need to record time off of 4 or more hours for my employee? Example: Vacation No Employees must only be paid for hours worked. Employees must receive 1.5 times their rate of pay for all hours worked over 40 in the 7 day workweek. Example: Joe is paid $10 dollars an hour. His overtime pay would be $15 dollars an hour. If a request for time off is approved, employees can use accrued sick or vacation time. If no accrued time is available they can have unpaid time off. If a request for time off is approved, employees can use accrued sick or vacation time. If no accrued time is available they can have unpaid time off. Employees must be paid their entire salary regardless of the amount of work performed in a week. (See exceptions on page 5) No No No If a request for time off is approved, employees can use accrued sick or vacation time. Can my employee take breaks? Does my employee have to take a meal break?. UAB policy allows your employees to take up to two 15 minute paid breaks if a department s work load permits. This time should not be saved and added to the end of a shift or used to extend or in place of lunch. A meal break should be factored into your employee s work schedule. The employee should be relieved of all duties and allowed to take an uninterrupted unpaid break of at least 30 minutes or more for meals. You should discuss break options with your employee. UAB policy allows employees to take up to two 15 minute paid breaks if a department s work load permits. This time should not be saved and added to the end of a shift or used to extend or in place of lunch. No Your employee is not obligated to take a meal break. If an employee needs to work through a meal period to meet the demands of business, they are allowed to do this. Educational Purposes Only - 10

11 FLSA DEFINITIONS Exempt Positions that are excused from following certain regulations (primarily overtime) of the Fair Labor Standards Act (FLSA). Hours worked Nonexempt employees must be paid for all hours worked in a workweek. This includes all time an employee must be on duty, or on the employer s premises or other assigned place of work from the first principal activity to the last principal activity. Also included is any additional time that the employee is allowed to work. (Example: suffered or permitted work) Nonexempt Positions that must follow all regulations of the Fair Labor Standards Act (FLSA). On-call Time Time where an employee is required to remain on UAB s premises in case they are needed to meet the needs of the organization. (Example: inclement weather) Suffered or permitted work Any work that is not requested by the employer but still worked by an employee. Example: An employee voluntarily and without approval from their supervisor continues to work at the end of a shift to finish an assigned task or correct errors. The employee must be paid for this time even though the time was not approved. The employee can be disciplined for this. Travel Time Travel time varies across different circumstances. Travel time is usually paid for nonexempt employees with the following exceptions: Normal travel time from home to a place of work Travel by plane, train or bus that is outside the normal work hours but the employee performs no work and is free to relax Travel time is considered part of the job for exempt employees. Always consult your HR Consultant or HR Compensation with questions about travel time. Waiting Time Time that an employee is required to be unavailable for other activities because they are waiting to work. Workweek A workweek is a period of 168 hours during 7 consecutive 24-hour periods. For purposes of minimum wage and overtime payment, each workweek stands alone. You can t average 2 or more workweeks. University Work Week Sunday Monday Tuesday Wednesday Thursday Friday Saturday 12:01 AM 12:00AM Hospital Work Week Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday 7:00 AM 6:59 AM Educational Purposes Only - 11

12 Educational Purposes Only - 12

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