Understanding Overtime
Webinar Details $219
- Rated:
- Webinar Length: 90 Minutes
- Guest Speaker: Cynthia Keaton
- Topic: Human Resources, Taxation and Accounting
- Credit: HRCI 1.5, SHRM 1.5, ATAPR 1.5
-
The Fair Labor Standards Act (FLSA) is federal legislation that determines which employees are entitled to overtime. It also covers minimum wage, recordkeeping, and child labor. It can sometimes be difficult to determine whether a position is entitled to overtime. There are white collar exemptions, administrative exemptions and several other categories of positions that are automatically exempt, but there can still be confusion on which of these positions the exemption applies to.
Understanding Overtime will explain the current FLSA as well as review the changes that have now been proposed to this legislation. If the changes are adopted, there will be a major shift in which positions are eligible for overtime. There will be a much higher salary threshold to be considered a salaried (exempt) employee. This could have major cost implications for companies. This class will review how you can approach the decision on whether to change an employee’s exemption status and how to evaluate the cost of making these changes.
Topics that will be covered:
- What is the Fair Labor Standards Act and what are the different exemption categories?
- How do I determine which positions are exempt from the FLSA?
- What are the changes that are proposed to the FLSA and how could this affect my company?
- What is the best way to determine if an employee should be exempt now and if the proposed revisions are adopted?
- How to calculate overtime for nonexempt employees who receive nondiscretionary bonuses or commissions.
- Which benefits are excluded from the regular rate of pay for calculating overtime?
Handouts
- FLSA Exemption Flowchart
- FLSA Exempt/Nonexempt Questionnaire
Introduction
Agenda 00:01:22
Recent Legislation Activity 00:03:24
Recent Legislation Activity (cont’d) 00:04:31
Recent Legislation Activity (cont’d) 00:07:25
What’s Next 00:08:26
Final Regulations Have Been Released 00:09:49
Federal Overtime 00:10:40
Exempt vs Non-Exempt 00:13:14
Exempt vs Non-Exempt - Management 00:16:42
Exempt vs Non-Exempt - Executive Exemption 00:18:23
Exempt vs Non-Exempt - Administrative Exemption 00:19:21
Exempt vs Non-Exempt - Administrative Exemption - Examples 00:22:25
Exempt vs Non-Exempt -Administrative Exemption - Discretion and Independant Judgement 00:24:15
Exempt vs Non-Exempt - Professional Exemption - Learned Professional 00:26:29
Exempt vs Non-Exempt - Professional Exemption - Learned Professional (cont’d) 00:28:37
Exempt vs Non-Exempt - Professional Exemption - Learned Professional (cont’d) 00:30:35
Exempt vs Non-Exempt - Professional Exemption- Creative Professional 00:33:08
Exempt vs Non-Exempt - Professional Exemption- Creative Professional (cont’d) 00:34:08
Exempt vs Non-Exempt - Professional Exemption- Creative Professional (cont’d) 00:36:16
Exempt vs Non-Exempt - Professional Exemption- Creative Professional (cont’d) 00:38:18
Exempt vs Non-Exempt - Computer Professionals 00:40:39
Exempt vs Non-Exempt - Computer Professionals - Primary Duty 00:41:59
Exempt vs Non-Exempt - Outside Sales Exemption 00:42:37
Exempt vs Non-Exempt - Highly Compensated Exemption 00:43:50
Non-Discretionary Bonuses 00:45:03
Federal Overtime 00:46:28
Federal Overtime Concerns 00:48:09
Regular Rate of Pay Table 00:52:02
Calculation 00:53:35
Updated Regulations Accomodate for Adjustments 00:54:50
Best Practices 00:55:46
State OT Requirements 00:57:45
Attendee Questions 00:59:20
Presentation Closing 01:09:06
- Department of Labor (DOL)
- Duties Test 00:09:17
- Exempt 00:10:05
- Fair Labor Standards Act (FLSA) 00:46:28
- Non-Discretionary Bonus 00:45:14
- Non-exempt 00:11:41
- Overtime 00:10:43, 00:46:35
- Salary Threshold 00:09:59
- Tipped Employee 00:48:25
Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.
Duties Test : A duties test is used to determine whether employees earning more than the salary threshold must be classified as nonexempt from overtime, including the tests for meeting the executive, administrative and professional exemptions
Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage
Non-Discretionary Bonuses: A non-discretionary bonus is a bonus that the employee is expected to be paid and it is usually given at the same time, either monthly, quarterly or annually. Because these bonuses are agreed upon ahead of time, they must be included in the regular rate of pay and the calculation of overtime.
Non-exempt: Non-exempt employees are workers who are entitled to earn the federal minimum wage for every hour they work. Such workers likewise qualify for overtime pay, which is calculated as one-and-a-half times their hourly rate, for every hour they work, above and beyond a standard 40-hour workweek.
Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.
Salary Threshold: The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages. Beginning January 1, 2020, the salary threshold increases, making a number of previously exempt employees nonexempt. The new FLSA salary threshold is $35,568 annually or $684 per week.
Tipped Employee: Any employee working in an occupation in which he or she regularly receives more than $30 a month in tips is considered a tipped employee. Minimum Hourly Cash Wages for Tipped Employees Under Minimum Wage Laws. A listing of wage and tip amounts required to be paid to tipped employees as determined by state law.
