jointly presented by human resources and fso-operations fair labor standards act revisions
TRANSCRIPT
![Page 1: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/1.jpg)
Jointly presented by Human Resources and FSO-Operations
Fair Labor Standards ActRevisions
![Page 2: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/2.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 2
FLSA Definitions
Exempt Employee: paid on a salary basis – non fluctuating, pre-determined amount; not covered by the overtime provisions.
Nonexempt Employee: paid on an hourly basis for all hours worked in a work week; covered by the overtime provisions.
![Page 3: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/3.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 3
FLSA Overtime Provisions
Nonexempt employees who work over 40 hours in a work week receive overtime pay (or compensatory time off) at one and one half times their regular rate of pay.
Employers must keep accurate records of nonexempt employees’ hours worked.
![Page 4: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/4.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 4
Requirements for Exemption from Overtime
Employee paid no less than $455 a week – “salary level test;” and
Employee paid a non-fluctuating salary – “salary basis test;” and
Employee performs exempt duties – “duties test.”
![Page 5: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/5.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 5
Salary Level Test
Minimum weekly salary raised to $455 from either $250 or $155 depending on test used.
Consequences: More full- or part-time employees in otherwise exempt jobs are now nonexempt.
![Page 6: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/6.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 6
Salary Basis Test
Employees receive a predetermined amount regardless of quality or quantity of work.
Consequences: Exempt employees must continue to be paid a salary as defined by the FLSA.
![Page 7: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/7.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 7
Exceptions to Salary Level and Salary Basis Tests
Salary requirements do not apply to teachers, outside sales employees and those practicing law or medicine.
Consequences: Adjunct Faculty making less than $455 a week remain exempt.
![Page 8: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/8.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 8
Other Exceptions
Graduate student assistants & associates likely are not employees for purpose of FLSA.
Consequences: Graduate student assistants and associates would no longer have to complete time records.
![Page 9: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/9.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 9
Duties Test for Exemption
Learned Professional ExemptionCreative Professional ExemptionComputer Professional
ExemptionHighly Compensated ExemptionExecutive ExemptionAdministrative Exemption
![Page 10: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/10.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 10
Duties Test – Professional Exemption - Learned Professional
Primary duty is performance of work requiring advanced knowledge, intellectual in character and exercising judgment and discretion.
Advanced knowledge involves a field of science or learning and must customarily involve a prolonged course of specialized intellectual study.
![Page 11: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/11.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 11
Duties Test - Professional Exemption - Creative Professional
Primary duty is the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor.
![Page 12: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/12.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 12
Duties Test - Computer Professional
Primary duty involves systems analysis procedures, including consulting with users to determine hardware, software & systems specifications;
The design, development, analysis, testing or modification of programs and systems; or
Similar work related to machine operating systems.
![Page 13: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/13.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 13
Highly Compensated Employee Test
Primary duty is office or non-manual work; and
Regularly performs either executive, administrative or professional exempt work; and
Earns $100,000 or more, including a salary of at least $455 a week.
![Page 14: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/14.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 14
Duties Test – Executive Exemption
Primary duty is managing a recognized department or subdivision. Note: employee can still perform non-management tasks if primary duty is managing.
Regularly directs the work of at least two or more full-time employees or their FTE equivalent.
Has authority to take actions such as hiring or firing or the ability to recommend and meaningfully influence such actions.
![Page 15: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/15.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 15
Duties Test - Administrative Exemption
Primary duty is office or non-manual work directly related to the general business operations of the employer.
Primary duties include the exercise of discretion and independent judgment with respect to matters of significance.
![Page 16: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/16.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 16
Examples of Discretion & Independent Judgment
May deviate from established policies and procedures without prior approval.
Negotiates and has authority to bind the employer on significant matters with or without financial impact.
Handles complaints, disputes and grievances.
![Page 17: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/17.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 17
Compliance Steps
1. Analysis2. Communications and
Training3. Administrative Process4. Systems Enhancements
![Page 18: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/18.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 18
Steps for Compliance - Analysis
Identify employees in exempt jobs who fail to meet new salary level test.
Review Classified Staff generic job descriptions and identify any questionable exemptions.
![Page 19: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/19.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 19
Steps for Compliance – Communications and Training
HR notifies departments with employees changed from exempt to nonexempt because of salary level test.
HR and FSO present training sessions to the campus community.
Establish comprehensive FLSA page on HR website.
![Page 20: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/20.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 20
Steps for Compliance –Administrative
Ensure recordkeeping requirements are communicated to departments.
Introduce revisions to PAF and the Hiring Form to capture the employee exemption status.
Introduce new codes for the exemption status of the job and of the employee.
![Page 21: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/21.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 21
EmployeeIs Nonexempt
Yes
No
EmployeeIs Exempt
Yes
No EmployeeIs ExemptYes
EmployeeIs Nonexempt
No
Determining Employee Exemption Status
single job OR multiple jobsIs the employee a doctor, lawyer
or teacher?
Is the employee assigned to a Classified
Staff job that HR has designated as nonexempt?
Is the employee regularly paid a salary
of at least $455 a week?
The University of Arizona – Human Resources and FSO August 2, 2004 21
![Page 22: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/22.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 22
FLSA Exemption Codes
For the Employee
E – Exempt
N – Nonexempt
For the Job
Y – Yes, the job is always exempt
N – No, the job is never exempt
M – Maybe the job is exempt
X – Exclude this job
![Page 23: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/23.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 23
Steps for Compliance – Systems Enhancements
Develop capability to have nonexempt and exempt employees in the same classification.
Set up system to track salary level changes that result in exemption status change.
Capture exemption status changes in the Payroll/HR system.
![Page 24: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/24.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 24
Impact on Employees
May be eligible for overtime pay.
Maintain accurate time record of every hour worked.
Communicate with departments if holding more than one job.
![Page 25: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/25.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 25
Impact on Hiring Departments
Monitor budgets to pay overtime to newly eligible employees.
Train employees on accurate time keeping procedures.
Be aware of changes in employees exemption status, and manage accordingly.
![Page 26: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/26.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 26
FLSA Compliance Tools
•PSOS Screens• 2 screens with exemption codes
• ISW reports • 2 Different reports• Notices of Exemption code conflicts
• Corrections• PAF • Time Sheets• POPRs or Vac/Sick Adjustments
![Page 27: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/27.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 27
PSOS Screen 08
YNMX
![Page 28: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/28.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 28
PSOS Screen 02
Employee’s FLSA status
Wildcat, Wilbur 1234
![Page 29: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/29.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 29
PSPM03 Time Roster Worksheet
(FLSA Exemption Status Conflict) Wednesday of non-pay week
Wildcat, Wilbur
Wildcat, Wilma
1234
1234
![Page 30: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/30.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 30
TRPR31A - Final Departmental Online Time Roster
Wildcat, Wilbur
Wildcat, Wilma
(FLSA Exemption Status Conflict)Wednesday of pay week
1234
1234
![Page 31: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/31.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 31
PAF Form to Change Employee Exemption Status
Emp FLSA Stat
FLSA Title
![Page 32: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/32.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 32
Timesheets for Recordkeeping
M T W T F S S M T W T F S S Vac Sick Cmp InitCD HRS CD HRS CD HRS
Week 1 totals
Week 2 totals
Pay Period
8V
M T W T F S S M T W T F S S Vac Sick Cmp InitCD HRS CD HRS CD HRS
Week 1 totals
Week 2 totals
Pay Period
4 4 4 4 4 R R V R R
4 4 4 4 4 4R R R R R U
.50 FTE Non-Exempt Employee (retro time sheet to correct)
Exempt Employee – Exception Time reporting
![Page 33: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/33.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 33
Paying OT for a Prior Pay Period
![Page 34: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/34.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 34
Adding Comp Time not Previously Reported
![Page 35: Jointly presented by Human Resources and FSO-Operations Fair Labor Standards Act Revisions](https://reader037.vdocuments.net/reader037/viewer/2022110400/56649da65503460f94a9116c/html5/thumbnails/35.jpg)
The University of Arizona – Human Resources and FSO-Operations August 2, 2004 35
Contacts and Questions
For questions regarding: Contact: PAFs Systems Control 621-3664
Time Rosters, Timesheets FSO-Operations 621-9097OT reporting
Employee Inquiries Human Resources 621-3662
Departmental Inquiries HR Organizational Consultant
Or visit our websites:Human Resources http://www.hr.arizona.edu/FSO – Operations http://www.fso.arizona.edu/fso/operations.asp