MIRMA SPRING TRAINING 2014

PRESENTED BY JANE DRUMMOND

WAGE AND HOUR LAWS

EMPLOYMENT PRACTICS UPDATE

Wage and Hour Laws

FLSA lawsuits hit a record high in 2013 Most common claim arising out of the

employment relationship

Three primary areas of concern: Minimum wageOvertimeRecordkeeping

Wage and Hour Laws

The basics:

Missouri minimum wage is currently $7.50 Federal is $7.25

Non-exempt employee receives overtime at a rate of 1.5X regular rate

Wage and Hour Laws

The Trouble SpotsFailure to properly categorize

exempt/nonexempt)

Exempt Categories: Executive Administrative Learned Professional Computer Outside Sales

Wage and Hour Laws

Executive (must meet all of the following) Salaried ($455/week or more) Primary duty is managing the enterprise or a

customarily recognized department of division Must regularly supervise at least two or more

FTEs Must have authority to hire, fire and promote or

at least have true input into such decisions

Wage and Hour Laws

Administrative (must meet all the following) Salaried ($455/week or more) Primary duty must be performing office or non-

manual work directly related to management or general business operations Accounting, budgeting, quality control, procurement,

marketing, safety, human resources, compliance Primary duty includes exercising discretion and

judgment with respect to matters of significance

Wage and Hour Laws

Learned Professional (must meet all the following) Salaried or fee basis ($455/week or more) Primary duty must be performing work requiring

advanced knowledge Predominantly intellectual and requires consistent

exercise of discretion and judgment Knowledge must be in a field of science or learning

and be acquired by a lengthy course of specialized education law, medicine, accounting, engineering, architecture,

sciences

Wage and Hour Laws

Computer (must meet all the following) Salaried or fee basis ($455/week or more)

Or $27.63/hour Must be a systems analyst, programmer, software

engineer or similar Primary duty must consist of:

Application of systems analysis to determine functional specs for hardware software or systems;

Design, analysis, testing or modification of systems or programs

Wage and Hour Laws

Outside sales Primary duty must be making sales or obtaining

orders for services or use of facilities Must be regularly away from employer’s place of

business

Wage and Hour Laws

The Trouble SpotsRecordkeeping

Wage and Hour Laws

Must keep certain records about employees, hours and wages Designation of workweek Employee’s full name, gender SSN and address

(inc. zip) Birth date

If under 19 Occupation

Wage and Hour Laws

Record keeping (cont.) Hours worked each day Hours worked each workweek Basis on which wages are paid

Hourly, Weekly, Piecework, etc. Regularly hourly rate Total daily or weekly straight time earnings Total overtime earnings for each workweek All additions to or deductions from wages Total wages paid each pay period Date of payment and pay period

Wage and Hour Laws

Record keeping (cont.)No particular form required, but must be

readily accessible for DOL review

For employees with a fixed schedule, can keep a record of exact schedule and indicate when followed But must record actual time for any deviation

Wage and Hour Laws

Record keeping (cont.)Retention:Keep payroll records for 3 yearsKeep all records supporting wage

computations for 2 years Time cards, schedules, etc.

Wage and Hour Laws

The Trouble SpotsFirefighters/EMTs/Law Enforcement

Wage and Hour Laws

Firefighters/Law Enforcement (cont.)Fire protection personnel include firefighters,

paramedics, EMTs, etc. who: Are trained in fire suppression Have legal authority and the responsibility for

firefighting Employed by a public fire department or district Are engaged in preventing and putting out fires in

emergency situations

Ambulance service personnel that are not involved in firefighting activities do not fit this exemption

Wage and Hour Laws

Firefighters/Law Enforcement (cont.)Law enforcement personnel include

employees with legal authority to: Enforce laws protecting peace, order, life and

property Prevent and detect crimes And who have undergone law enforcement

training

Wage and Hour Laws

Firefighters/Law Enforcement (cont.)Firefighters and Law Enforcement may be

paid OT by “work period” instead of workweek In a 28-day period:

Firefighters are due OT after working 106 hours in 14 days Police are due OT after working 86 hours in 14 days

Actual calculation requires OT when hours worked bears same relationship to 212 hours (fire) or 171 (police) as number of days in work period bears to 28

Wage and Hour Laws

Firefighters/Law Enforcement (cont.)Example: Work period equals 10 days. 10

days = .35714 of 28 days. Firefighters accrue OT when they work .35714 of 212 hours = 75 hours.

Example: Work period equals 7 days. 7 days = 25% of 28 days. Police accrue OT when they work 25% of 171hours = 42.75 hours.

Wage and Hour Laws

The Trouble SpotsOn Call 

Waiting to engage or engaged to wait? Waiting to engage means employee is free to engage

in purely personal pursuits until employer calls. Engaged to wait means employee’s freedom of

movement and activity are restricted.

Engaged to wait is compensable work time and must be factored into overtime calculations.

Wage and Hour Laws

The Trouble SpotsComp Time

Public entities can provide comp time in lieu of time-and-a-half

Wage and Hour Laws

Comp time (cont.)Time off must be credited at 1.5 hours for

each hour of overtime workedCan treat separate categories of employees

differentlyEmployee must agree to comp time

arrangement Can be condition of employment at time of hire May notify employees and receive

acknowledgement Personnel handbook

Wage and Hour Laws

Comp time (cont.)Nonexempt employees can accrue up to 240

hours of comp time Public safety/emergency responders can accrue

up to 480Cannot be subject to “use it or lose it

policy” But can manage by sending employees home

during slow periods/scheduling Employees are allowed to use within a

“reasonable” time after request, if it does not unduly disrupt operations

Wage and Hour Laws

Comp time (cont.)When employment ends (for any reason),

accrued time must be paid at greater of: Employee’s average regular wage rate during the

last three years; or Employee’s final regular wage rate

Wage and Hour Laws

Questions?