Indiana University Bloomington

Fair Labor Standards Act (FLSA)Overtime Provisions

University Human Resource ServicesApril 19, 2023

Agenda

• Staff/Hourly covered by FLSA • Recordkeeping requirements• Work Schedule and Overtime Compensation• PAO considerations• Staff/Hourly with Multiple Positions

Staff/Hourly Covered by FLSA

• Overtime eligible employees are covered by the FLSA record keeping & overtime provisions– Support Staff– Service Maintenance– Food Service– Hourly– Overtime eligible Professional Staff

Staff/Hourly Covered by FLSA

• Professional Staff - PAO – Positions do not meet the FLSA overtime exemption

• Professional Staff - PAU– FLSA salary level test for overtime exemption not met

• Positions paid < $23,660/year

Compensation Program for Professional Staff

Recordkeeping Requirements

• Every employer must keep complete & accurate records of time worked and time off– Work schedule– Daily/weekly hours

Recordkeeping Requirements

• Overtime eligible Staff/Hourly responsibility– Complete timesheets daily/weekly– Record time to nearest tenth of hour

• Managers’ responsibilities– Approve overtime or declare comp time for Staff in

advance– Verify hours worked and time-off– Sign timesheet

• Department responsibility– Keep on file

Work Schedule

• IU work schedule & policy (not FLSA)– Work week begins and end Saturdays at midnight

• Overtime compensation (OT)– Hours worked > 40 in a work week– Paid at 1.5 X regular rate or as

compensatory time for Staff• Supervisor must communicate to employee how

OT compensation will be given prior to any OT hours worked

PAO Considerations• Overtime compensation for hours > 40 in a week

– Pay, or – Comp time (department’s choice)

• Manager must communicate prior to work

• Comp Time– Record hours and multiple by 1.5– Maximum balance 160 hours

• PTO cannot exceed the amount earned– 240 hours (< 5 years with IU) or 288 hours

Staff/Hourly with Multiple Positions

• Employees who work for multiple departments – Compensated for all hours worked, and – 1.5 X regular rate for hours worked > 40

Summary

• FLSA is a federal law• Accurate and timely recordkeeping for all

Staff/Hourly is required• Overtime compensation for all hours worked

over 40 is required for overtime eligible staff