FLSA Pitfalls and Innocent Errors

                                                                                  "Compensation Time Off (CTO)"
         Another hurdle many human resource professionals tend to trip over is the discussion between Compensation Time Off (CTO) and Overtime Pay (OP). Compensation Time off, as the OPM describes, is, "Time off with pay in lieu of overtime pay for irregular or occasional overtime work." Mix-ups begin when employers decide to give employees CTO without understanding who qualifies for it. For starters, some are not aware that the "FLSA mandates that non-exempt employees must be paid in dollars for their overtime and cannot receive compensatory time instead."
US Legal, Inc further informs: "In 1978, Congress passed the Federal Employees Flexible and Compressed Work Schedules Act which enabled the Federal Government to pay its employees comp time instead of overtime pay. In 1985, this provision was extended to state and local employees as well at the employee's option." Regardless, FLSA still requires that overtime compensation to be made monetarily to private sector hourly workers.
For public sector employers, further confusion can occur when human resource representatives do not distribute the CTO time properly. If an employee where to work over 5 hours overtime, in compensation time then should expect 7 ½ hours off. Just as with overtime, employees who receive CTO should expect the time back in 1.5 times the amount worked (according to an article at vault.com). They should also expect to take those hours off the same week they accrue them. Many employers do not keep these points in mind and compensate their workers with exact hour time off or allow them to accrue the hours for weeks, and months at a time.

                                                                                               Innocent Errors:
                                                                                     "Forgetting to Keep a Paper Trail"
          Michael mentions in his presentation, "The biggest mistake employers of all sizes make is to over-rely on time cards or time sheets to record hours for their non-exempt employees. More commonly, employers get tripped up because they lack a system for recording ‘borderline' work time spent by non-exempt employees. The errors need not be intentional to violate FLSA." For many employers it is very difficult to keep track of every single minute of time worked by their non-exempt employees. Not all companies can afford an electronic sign in/sign out device to accurately keep track of time. However, all companies can afford to document hours via record sheets that are transferred onto a database. Investing into a simple database program such as Microsoft Access could help any organization to accurately keep track of all time worked.

                                                                                         "Outdated Job Descriptions"
          Due to understaffing, some employees may take on tasks usually left to other employees in another job title. While circumstances may permit this, HR representatives should recognize that due to the extra work these employees undertake their exemption status may be affected. Also keep in mind that not all salaried employees are exempt. HR representatives must determine if 20% or more of the employee's day is spent on non-exempt tasks, and whether at least 50% of the day is still spent on primary job duties. If adjustments are needed, so be it. First, start with a thorough audit of the organization's job descriptions. After receiving an accurate understanding of what employees should be doing, physically take the time to find out what they are actually doing. Employees may appreciate that you are taking the time to find out whether they are being overworked or not. After gathering this data compare and contrast. If you notice that employees should have been paid overtime, or have compensatory time off, take care of it immediately. It is more than likely cheaper than a lawsuit. Also, do not forget to also check with state laws. Although the FLSA is a federal law, if your state has a law more favorable to employees, then that law applies more than the FLSA does.

                                                                                   "What To Do? OH! What To Do?!"
         With all this talk on the FLSA and how easy it is to make a mistake in applying it, many have become frustrated. Even though it is understood that the FLSA was not put into place to make the topic of compensation more difficult than it already is, many organizations still find themselves between a rock and a hard place. While consulting a labor lawyer is always the best way for clarification, organizations don't always have the funds or the time to consult for every questionable issue. Many human resource consulting firms, like Astron Solutions, offer FLSA compliance audits separate from or part of consulting engagements. In addition we at Astron Solutions are happy to give Astronology readers a peek into an upcoming product. Astron Solutions is currently in the works of creating a training module that will help educate managers on the ins and outs of the FLSA law. To find out more, just check Astron Solutions' website for information at a later date. It is also not a bad idea to confer with the Department of Labor website and the Office of Personnel Management website for more information. In addition, the DOL provides a free Power Point review of FLSA basics. Taking the time to be informed from both these sources will be beneficial. In addition, with assistance through training modules and trained professionals, all can avoid the common pitfalls and mistakes in handling the FLSA.