Non-exempt Employees: Reporting Hours Worked; Overtime/Comp Time/Other. HR Facilitators Meeting July Human Resources
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1 Non-exempt Employees: Reporting Hours Worked; Overtime/Comp Time/Other HR Facilitators Meeting July 2012
2 Objectives Why all hours worked by non-exempt employees need to be reported in Time & Labor How to pay a non-exempt employee for additional work outside of the primary job/position/project/department Converting overtime hours to compensatory time hours Costs of Violations
3 FLSA Recordkeeping Requirements Related to Overtime Worked Hours worked each day and total hours worked each work week Basis on which employee's wages are paid Regular hourly pay rate Total daily or weekly straight-time earnings Total overtime earnings for the workweek All additions to or deductions from the employee's wages This is why lump sum pay for projects by nonexempt employees is problematic.
4 Basics of Overtime / Compensatory Time All time worked by non-exempt employees must be reported in Time & Labor. All time worked beyond 40 hours in one work week in any non-exempt position (regardless of department) is subject to overtime. You CANNOT promise a non-exempt employee a lump sum payment for same or similar duties in another job/position/project/department on campus (any campus). UMKC s work week is Sunday through Saturday
5 OT & Comp Time Functionality in Time & Labor QUIZ Your department needs a benefit eligible non-exempt/hourly paid person to work on another project, or in what you think is a different job. What do you do? A. Add a concurrent job B. Use an additional pay PAF form C. Panic D. Have the person time in and out for all hours worked. PCE the earnings to the appropriate MoCode
6 Overtime & Comp Time Functionality in Time & Labor Time & Labor calculates overtime automatically if all hours worked are recorded in the time sheet. To ensure that a Time Reporter has accrued overtime, it is important to view both the employee s payable time details for clarity and the time sheet. HR advises that supervisors review time sheets each week to determine if overtime is being approached. The Timekeeper converts overtime to compensatory time.
7 Payable Time Detail will display OTM In this example it was earned on Feb 2, The Codes are shown in alpha order for each day. If you are going to convert the time to Comp Time it is important to note on which date it was earned.
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11 Headline: Strategic HR Lawyer Strategic Human Resource Management Law September 16, 2009 USDOL Beefs Up Enforcement There will be 150 investigators added in the Wage and Hour Division to enforce wage rules and child-labor laws. 100 staff will be added to ensure contractors on stimulus projects are in compliance with applicable laws, increasing the division s staff by more than one-third. The Employee Benefits Security Administration is adding 75 staffers to conduct nearly 600 more criminal and civil investigations. The Occupational Safety and Health Administration recently formed a task force to design an enforcement program for severe violators.
12 Headline: Compensation Ezine Business & Legal Reports December 1, 2009 Wage & Hour Enforcement Beefed Up The Department Of Labor's Wage and Hour Division has increased its enforcement and outreach efforts, says U.S. Secretary of Labor Hilda L. Solis. Solis says the division has hired 250 new investigators, increasing its staff by more than 33 percent. In addition to beefing up its enforcement, the department will launch an outreach campaign aimed at informing workers about their rights. (emphasis added)
13 Business & Legal Resources December 7, 2009 DOL, EEOC, and Your Employees Attorneys Are Reading This Report A recently released report concludes that a stunning percentage of workers in this country are underpaid and otherwise mistreated at work. Overtime Violations: Of the respondents who worked more than 40 hours during the previous week (about 25 percent of respondents), 76 percent were not paid the legally required overtime rate by their employers.
14 Local Billboards, TV Ads In Kansas City, we have seen active marketing over the past 2-3 years for hourly workers to bring forward questions about overtime pay practices Have you been (under)paid for what the law says you are owed for your work?? Text us if you have a complaint at xxxx. 7,008 FLSA cases were filed in the 12-month period ending March 31, 2011, compared to the 6,081 filed in the 12-month period ending March 31, Both years were record levels of filings.
15 Wage & Hour: Recovery of Back Wages Wage and Hour may supervise payment of back wages. The Secretary of Labor may bring suit for back wages and an equal amount as liquidated damages. An employee may file a private suit for back pay and an equal amount as liquidated damages, plus attorney's fees and court costs. The Secretary of Labor may obtain an injunction to restrain any person from violating the FLSA, including the unlawful withholding of proper minimum wage and overtime pay.
16 Penalties for Violation: FLSA Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to a civil money penalty of up to $1,000 for each such violation. A first violation could cost an employer up to $10,000 if they are criminally prosecuted and found to be willful violators.
17 How Much Could It Cost: Actual Cases Sullivan University System (KY) $483,000 in back wages for overtime violations also cited for failure to keep accurate records of employees hours Wal-Mart Stores Inc. $4,828,442 in back wages and damages $463,815 in civil money penalties Semafor Technologies LLC in Norcross, Ga. $741,288 in back wages - 73 employees; <$12/hour The George Washington University Two employees (2012) (Law and Medicine) join a lawsuit alleging that GW withheld over $5 million in overtime pay Grantham University May 19, 2011: federal district court (KC, MO) granted conditional class certification in a Fair Labor Standards Act (FLSA) lawsuit seeking unpaid overtime for hourly employees.
18 Remember Time & Labor is not as broken as you think. Don t try to outsmart it. All hours need to be recorded; then let T & L do the math. No lump sum project pay for non-exempt employees Enforcement is on the increase Non-compliance is expensive Call before making an arrangement that doesn t want to go in Time & Labor
19 Please don t behave like this.. The University relies on you to treat our employees fairly, and protect the University from huge monetary liability. If you can t make it fit in Time and Labor, especially for someone paid hourly, there is likely a valid reason.
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