FAIR LABOR STANDARDS ACT OVERTIME PROVISIONS TIME WORKED
FAIR LABOR STANDARDS ACT OVERTIME PROVISIONS
TIME WORKED • ALL time worked is compensable. • Do not differentiate between time worked on shift, after the end of shift, court time, special details, or caring for a canine. • Employees cannot “volunteer. ” • If an employee works, you must pay. • Fringe benefit time does not have to be counted as “time worked. ”
Work Periods • Not the same as “Pay Periods” • For non-public safety, work period is seven days (one week) • Public Safety: • Any time period between seven days and 28 days. • One week, two week, or four week.
OVERTIME THRESHOLD • For non-police officers, the overtime threshold is 40 hours for a one week work period. • For police officers, the overtime threshold is: • 43 hours for one week • 86 hours for two weeks • 171 hours for four weeks
OVERTIME THRESHOLD • Fire Departments: • 28 days: 212 hours • 27 days: 204 hours • 14 days: 106 hours (80 hours) • 7 days: 53 hours (40 hours)
OVERTIME • Employer must compensate at 1½ times the normal rate of pay for all hours worked in excess of the “overtime threshold. ” • 50% premium • May be money or compensatory time • The work period is independent of the pay period.
HOW WORK PERIODS IMAPCT OVERTIME EMPLOYEE IS SCHEDULED TO WORK 40 HOURS PER WEEK: That employee works six extra hours in week one (46 total) in one week and 40 hours the next. Week One: Three hours over the overtime threshold Week Two: No hours over the threshold
HOW WORK PERIODS IMAPCT OVERTIME • Week One • Week Two • Worked 46 hours • Worked 40 hours • Three hours over the • No overtime threshold • Pay three hours at ½ times the normal rate
HOW WORK PERIODS IMAPCT OVERTIME EMPLOYEE IS SCHEDULED TO WORK 40 HOURS PER WEEK: That employee works six extra hours in week one (46 total) in one week and 40 hours the next. If on a two-week work period, the total number of hours worked is 86 hours. Pay is for 86 hours, no overtime.
HOW WORK PERIODS IMAPCT OVERTIME • Week One • Worked 46 hours • Week Two • Worked 40 hours Total hours worked in work period: 86 hours. The threshold for two week work period is 86 hours. There were no hours worked in excess of the overtime threshold
HOW WORK PERIODS IMAPCT OVERTIME EMPLOYEE IS SCHEDULED TO WORK 40 HOURS PER WEEK: That employee works ten extra hours in week one (50 total) and takes 40 hours of vacation in week two. If on a two-week work period, the total number of hours worked is 50 hours. Pay is for 50 hours , plus 40 hours vacation, no overtime.
HOW WORK PERIODS IMAPCT OVERTIME • Week One • Worked 50 hours • Week Two • Took 40 hours of vacation Total number of hours worked: 50 hours Employee receives pay for 50 hours (no overtime) plus 40 hours of vacation pay
Compensation • The overtime premium is 50% of the hourly rate (the hourly rate plus the overtime premium = “time and a half) • Overtime can be compensated with cash (paycheck) or “compensatory time. ”
COMPENSATORY TIME • Comp time can be given in lieu of cash. • Comp is 1½ times the number of overtime hours worked. • Comp time must be documented and can accrue. • Federal limit is 480 hours for police and fire. City can set lower limit, but any hours in excess of the limit must be paid.
COMPENSATORY TIME • If the employee leaves, all accrued comp time must be paid for at the employee’s current rate of pay. • Comp time cannot be taken away. It must be taken off or paid for. • The employer may require the employee to take comp time.
CANINE • Time spent caring for a canine or training counts as compensable time. • You control the amount of time spent performing those tasks by policy. • The amount of time allowed must be “reasonable. ” • Some courts have ruled that 30 minutes per day is reasonable.
CONTROLLING CANINE TIME • Establish policy defining the amount of time the officer can spend caring for the dog • Make allowances for emergencies • Require advance permission for extra nonemergency work. • Require canine care be done on-duty when possible (allow the officer a certain amount of time to care for the animal at home during the shift. )
EXEMPT versus NON-EXEMPT • Employees not subject to overtime are “exempt from overtime. ” • Employees who are subject to overtime are “nonexempt. ” • This is not quite the same as “hourly versus salary”. Some salary employees can still be “non-exempt. ”
SALARY versus HOURLY • An hourly employee is compensated based on the number of hours actually worked. • A salaried employee is compensated for a specific number of hours or for the job performed. If the employee is non-exempt, overtime must be paid when the employee’s hours exceed the overtime threshold. • The salaried employee’s salary must be converted to an hourly rate to determine the overtime rate.
WHAT IS EXEMPT? • Minimum salary: • $455. 00 per week • $23, 659. 92 per year • NEW (12/1/2016) $913. 00 per week or • $47, 476. 00 • Executive exemption • Administrative exemption • Professional exemption
EXECUTIVE EXEMPTION • Minimum salary • Primary duty to manage department or subdivision • Customarily directs the work of two or more employees • Has authority to hire or fire employees, or whose recommendations for hiring, firing, promotion, etc. , are given particular weight.
ADMINISTRATIVE EXEMPTION • Minimum salary • Performance of office or non-manual work in management or operations of the employer or employer’s customers • Primary duty includes exercise of of discretion and independent judgment to matters of significance.
PROFESSIONAL EXEMPTION • Minimum salary • Primary duty includes performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction
LAW ENFORCEMENT • Generally, law enforcement officers are specifically NOT exempt, when their duties include: • Detection or prevention of crime • Investigations • Inspections for violations of laws • Restraining, detaining or apprehending suspects • Interviewing witnesses • Cont.
Continued… • Interrogating and fingerprinting suspects, preparing investigative reports, • Or other similar work
DISCRETIONARY DUTIES • If 50% or more of an employee’s duties include line level work, the employee is non-exempt. • However, if the employee has discretionary authority to decide whether he/she will perform line level work, the employee can still be exempt.
VERY SMALL POLICE and FIRE DEPARTMENTS • Any department with fewer than five total employees is exempt from the overtime provisions. • The total number includes the chief and any parttime officers. • The number does not include volunteer officers. • The number does not include support personnel.
Rex Barton • rex. barton@tennessee. edu • (423) 506 -0402
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