wage hour dol
TRANSCRIPT
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Wage and Hour: Staying on the
Right Side of the DOL
Sage HR R&R: Refresh and Recertify
Webcast Series
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Your Presenter for Today
Mary Anne Osborne, SPHR
The Osborne Group INSERTPICTURE
HERE
Over 25 years of HR experience inTelecom, Financial, Manufacturing,
Healthcare and Higher Educationarenas
People-centric HR Professional Award winning Business, Customer Service and
Quality focused
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Objectives
In Todays Webcast You Will Learn:
How the DOLs interpretation of the FLSA affectsyour business.
How the latest court cases are affecting wage and
hour. What actions the HR department should be
engaged in now to avoid fines and litigation.
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Department of Labor
Wage and Hour DivisionMission Statement
The WHD enforces Federal minimum wage, overtime pay,recordkeeping, and child labor requirements of the Fair Labor
Standards Act.
WHD also enforces the Migrant and Seasonal Agricultural Worker
Protection Act, the Employee Polygraph Protection Act, the FamilyMedical Leave Act, wage garnishment provisions of the Consumer CreditProtection Act, and a number of employment standards and workerprotection as provided in several immigration related statutes.
Additionally WHD administers and enforces the prevailing wagerequirements of the Davis Bacon Act and the Service Contract Act andother statutes applicable to federal contracts for construction and for theprovision of goods and services.
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WHD Statistics For 2008
*
Recovered $185M in back wages for 228,000 U.S. workers.
8
97 days to resolve complaint.
*
88% of these cases were related to overtime.
12% were minimum wage related.
35% of the WHDs time was spent in enforcement in low wageindustries: AG, daycare, restaurants, garment, security,healthcare, hotels and motels, janitorial, and temp help.
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White CollarExemption
Contractor
Temp Labor
FLSA:
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White Collar
ExemptionKey Factors
Titles dont determine status
Must be paid $455/week or notless than $23,660 annually
Categories covered under the
exemption MAY include: Executives
Administrators
Outside sales
Professionals
Highly compensated employees
Computer professionals
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White CollarExemption:
ExecutivesKey Factors
Wage requirements*
Primary dutymanaging thebusiness or a subset
Regularly directs the work of two
or more people Have the authority to hire and fire
or their recommendations onbusiness decisions must be
given particular weight
* If an executive owns 20% of equity shares, theydont have to meet wage requirement.
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White CollarExemption:
AdministratorsKey Factors
Wage requirements
Work must be office, not manual,directly related to managementpolicies or business operations of
the employer or its customers. The employee is regularly
expected to use discretion andexercise independent judgment
with regards to significantmatters.
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White CollarExemption:
Outside SalesKey Factors
There is no compensation test
for this exemption. Must meet both of these
requirements:
The primary duty is to make sales,obtain orders or contracts for services,or contracts for the use of facilities forwhich the customer or client pays.
The employee is primarily or
customarily engaged in theperformance of their duties away fromthe primary place of business.
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White CollarExemption:
ProfessionalsKey Factors
Salary requirement must be met.
Work must be office, non-manualand requires one of the following:
Advanced knowledge in a field ofscience or learning generallyacquired through a long course ofintellectual instruction.
Invention, imagination, originality, ortalent in a field of artistic or creative
endeavor.
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White CollarExemption:
Highly Compensated
Employees
Key Factors
Earns at least $100,000 in base
salary, commissions, and non-discretionary bonuses.
Performs one or more of the
duties of either an exemptexecutive, professional oradministrative employee.
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White CollarExemption:
Computer
Professionals
Key Factors Wage requirements include $23.63/hour.
Exempt computer employee must haveprimary duty in one of the following:
Application of systems analysis techniquesand procedures.
Design, development, documentation,analysis, testing, creation, or modification ofsystems or programs including prototypesbased on or related to user designspecifications.
Design ,development, documentation, testing
,creation, or modification of computerprograms related to machine operatingsystems.
A combination of the above three requiring thesame level of skills and abilities.
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ContractorsKey Factors Degree to which the contractor has the
freedom to control the manner in whichthe work is performed.
The opportunity for profit/loss dependingon own skills.
Who controls investment in equipment toperform job.
Whether the services rendered requirespecific skills.
The degree of permanence of therelationship.
Whether the work performed is anintegral part of the employers business.
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Key Factors
Are they truly independent
contractors? May work for the leasing agency
or the recipient employer or both
To what level is your companyinvolved in the selection, hiring, andestablishing working conditions?
Are they covered under FLSA,
FMLA, etc.
Temp
Labor
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FEDS
Pass Laws
Enforce
throughgovernmentagencies andregulations
STATES
Pass Laws
Enforce
through thestates attorneygenerals office
COURTS
Interpret andclarify laws
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Recent Court CasesAt Federal and
Circuit Court
Supreme Court: Oralcomplaints must be heard
Ninth Circuit:Pharmaceutical sales
reps fall within OutsideSales exemption
Seventh Circuit:Fluctuating workweek
Bridge to Justice U.S.DOL has agreement withABA to refer cases
State Cases
CA: Make suitable seatsavailable
NYS DOL has issued newrules on minimum wage
and tips in the foodservice industry.
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Employers Take Action
RECORDKEEPING
AUDITS
RECORDHOURS
WORKED
WEEKLY
MANAGETIME
RECORD
EDITS
PRESERVEDATA FOR
EASY
RETRIEVAL
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DO THERIGHT
THING
DO ITRIGHT THE
FIRST TIME
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REFERENCES www.dol.gov
www.dol.gov/whd/flsa
www.dol.gov>ComplianceAssistance>ByLaw
www.flsa.com
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About Sage Abra HRMS Sage Abra is human resource
management system software that
delivers tightly integrated HR,payroll, benefits and attendancefunctionality, plus rich reporting andanalysis tools.
Sage Abra can help you stay on theright side of the Department of Laborby helping you keep track of youremployees, your companys labor
records, and by providing advancedreporting tools (both customizableand standard) such as CrystalReports.
Sage Abra Solutions Specialist
Jessica [email protected]
Sage Abra training courses
are located at:www.SageU.com/Abra
Sage Abra webcasts and
demos are located at:www.SageWebcast.com