FAQs
FAQs Fair Labor Standards Act Regulatory Changes Update May 3, 2016
Note: Regarding union employees, consult the collective bargaining agreement (union contract) or call HR. Where there are differences between the union contract and the following information, the union contract is followed.
How does overtime pay work?
May I adjust an employee's schedule to minimize overtime pay?
How do I calculate overtime when my non-exemp employee travels
This will impact my budget. Where will the money come from?
Will the employee's pay or benefits change if they are converted to non-exempt?
My staff member may view this as a demotion. How can I help them understand it is not?
Will I have to switch from a 37.5 hour work week? How many hours per week will I be scheduled
What administrative practices will change for me and my staff menber?
What is not changing for those moving to non-exempt?
What happens if we don't comply with this change?
Is there any benefit to anyone in this change?
What if my employee works OT without my permisson?
TRAVEL RELATED OVERTIME FAQS
What is the definition of "hours worked"
What constitutes travel time when leaving from work and flying out of town?
What constitutes travel time when leaving directly from home?
Do I have to pay for the meal period while traveling?
What about a conference or business meeting without an overnight stay?
Do I have to pay for a full day if the conference time on a given day is shorter than an employee's regular day?
If the meal period at the conference is longer than an employee's regular lunch period, do we have to pay for any part of the lunch period?
What about the conference social networking in the evening?
California allows an employer to pay a lower wage rate for travel time. May I do that?
Are travel time calculations different for union members?
An overtime eligible employee (non-exempt) is paid overtime as follows
We must pay 1.5 times the employee's regular rate of pay for:
• All hours worked beyond eight in a single workday
• All hours worked beyond 40 in a workweek
• The first eight hours worked on the seventh consecutive day worked in a single workweek
We must pay double the employee's regular rate of pay for both:
• All hours worked beyond 12 in a single workday
• The hours worked beyond eight on the seventh consecutive day worked in a single workweek
May I adjust an employee's schedule to minimize overtime pay?
The university will have periods of time when a number of events may be held early morning, evenings and weekends. During these periods, supervisors may direct an employee to work a different schedule in that specific work week to meet business needs. Examples of events include Profile Day, Commencement Weekend and Celebration Dinners.
• Human Resources recommends the supervisor give as much advance notice as possible of the revised schedule for a specific work week but no less than 24 hours, unless it is an emergency.
• If the employee works over eight hours daily or 40 hours during the week, overtime will be paid appropriately.
• There is no "compensatory time off" for employees.
• Consult the union contracts for union employees.
How do I calculate overtime when my non-exempt employee travels?
See the "Travel Related Overtime" section at the end of the FAQ for information about calculating travel overtime pay.
This will impact my budget. Where will the money come from?
One option is to limit the number of hours a non-exempt employee works to 8eight in a day or 40 in a week. This will result in a zero budget impact but will likely impact productivity. This is a management issue for you to consider. If overtime pay is unavoidable in certain circumstances, we encourage you to work with your supervisor and divisional business managers to manage the financial impact within your division.
Will the employee's pay or benefits change if they are converted to non-exempt?
An employee's pay should not change. The pay rate will be based on the current salary converted to an hourly rate and will be based on a 40-hour work week.
University leadership decided to grandfather the vacation accrual rates and maximums for incumbents converting to non-exempt.
All other benefits remain the same.
My staff member may view this as a demotion. How can I help them understand it is not?
FLSA status does not diminish the importance of a position or the individual in that job. Some managers and staff may equate FLSA exempt status to a higher level of professional status. This is a widely held belief in higher education. University of the Pacific believes that every staff member is a professional and a valuable contributor to the organization.
Managers can help their employee understand that this issue is happening across the country so all of higher education is in the same situation. It will be a national adjustment in some ways.
Will I have to switch from a 37.5 hour work week? How many hours per week will I be scheduled?
Exempt staff converting to non-exempt will work a 40-hour work week. Their current hourly rate was established based on an eight-hour day.
What administrative practices will change for me and my staff member?
Non-exempt staff members submit a semi-monthly time sheet. They also use sick or vacation time to offset appointments or time away from work during scheduled hours and will follow the lunch and break time schedule rules . Your supervisor can help you adjust to these administrative changes.
What is not changing for those moving to non-exempt?
An employee's pay should not decrease. The pay rate will remain the same and be converted to an hourly rate based on a 40-hour workweek. An employee may see increased income if they have overtime work pre-approved and worked. Vacation accrual rates and maximums are not changing. The university is grandfathering incumbents. Vacation accrual rates will change when the position turns over.
What happens if we don't comply with this change?
The Fair Labor Standard Act is a Federal law. Failing to comply can result in having to pay back overtime, fines, penalties and potentially (although rare) jail time. An individual supervisor can be held responsible under this law.
University of the Pacific is a federal contractor meaning we receive federal money for certain activities. Failing to comply with any of the major labor laws puts these contracts in jeopardy.
The university expects its managers to comply with all applicable laws so choosing not to comply may result in discipline or termination.
Is there any benefit to anyone in this change?
President Obama initiated this change to dramatically increase the number of employees eligible for overtime pay. The best news is for the employees who may see their pay increase if they work overtime. Overtime must be pre-approved by the supervisor.
What if my employee works overtime without my permission?
We still have to pay the employee but it can be treated as a performance issue with a resulting appropriate corrective action. The best thing a supervisor can do is to communicate clearly expectations about requesting overtime and state the directive to not work overtime without permission
TRAVEL RELATED OVERTIME FAQS
What is the definition of "hours worked?"
Hours worked is the time during which an employee is subject to the control of the employer including time suffered or permitted to work, whether or not required to do so. Hours worked is not limited to the regular work schedule. "On duty" is the same as hours worked.
What constitutes travel time when leaving from work and flying out of town?
Travel time begins when a staff member leaves their regular work site to go to the airport and ends when they arrive at a hotel or designated destination.
What constitutes travel time when leaving directly from home?
Travel time when leaving from home for the airport or other worksite is the entire amount of the travel time less the amount of time for the employee's regular commute.
Do I have to pay for the meal period while traveling?
It depends on whether or not the staff member has the freedom to move or act freely or put another way, if they have been released from duty or not. For example, a meal period while on an airplane is probably compensable because they are not free to move about but a meal period during a layover or at a hotel is not.
What about a conference or business meeting without an overnight stay?
If the staff member drives or takes other transportation from home directly to the conference location, we must pay the travel time to and from the location in excess of the staff member's normal commute time. We must pay the conference time except for the lunch break unless they are considered "on duty" during that lunch break.
Do I have to pay for a full day if the conference time on a given day is shorter than an employee's regular day?
No. We have to pay only for the conference time even if it is shorter.
If the meal period at the conference is longer than an employee's regular lunch period, do we have to pay for the any part of the lunch period?
It depends on whether or not the excess time is "on duty" time. For example, if an employee's lunch is normally 30 minutes but the conference lunch is 75 minutes and includes a speaker, the excess time is probably part of the conference and should be paid. If the lunch period is 75 minutes and an employee is free to leave when they wish and relax before the next session, it probably is not "on duty" time and may not need to be paid.
What about the conference social networking in the evening
The answer depends on whether or not Pacific requires the employee to attend that networking event.
California allows an employer to pay a lower wage rate for travel time. May I do that?
University of the Pacific's practice is to not alter the hourly rate for these purposes.
Are travel time calculations different for union members?
Please review the collective bargaining agreement for that employee or call Human Resources.