TO:Deans and Directors
FROM:Linda Harber
Chief Human Resource Officer
DATE:September 29, 2018
SUBJECT:Timekeeping Issues for Non-Exempt Employees
On April 20, 2004, the Department of Labor announced revisions to the Fair Labor Standards Act (FLSA) that will impact all employers by August 2004. For the next several months Human Resources staff will be reviewing positions for potential changes in exemption status.
Currently, all employees in pay bands 1 and 2, mostin pay band 3, and a few in pay band 4 are considered non-exempt, which means overtime eligible. As a result of the revisions to the FLSA, some technical corrections will be required.
The first anticipated change is that all employees in pay band 3 will be non-exempt. Positions in pay band 4 will be reviewed on an individual basis, and might require detailed job audits by Human Resources staff to determine the exempt or non-exempt status.All wage employees are considered non-exempt. Positions in pay bands 5, 6 and 7 will likely remain exempt. Further information will be provided over the summer.
In the meantime, I would like to take this opportunity to clarify several administrative issues about timekeeping for non-exempt employees. Non-exempt employees are required to be paid 1.5 times the regular hourly rate, for all hours over 40 physically worked in a work week. The GMU work week is from 12:00 a.m. Sunday to 11:59 p.m. Saturday. Work time is defined by the FLSA as any hours an employer “suffers or permits” an employee to work. This includes time a supervisor allows or has knowledge that the non-exempt employee is working, such as early arrivals, late departures and working during the lunch break.
Here are some points managers, supervisors and employees should keep in mind when approving timesheets:
- Supervisors must approve the working of overtime in advance.
- Non-exempt employees must record the exact number of hours worked each day on their electronic timesheet. Tracking time “off the record” is not allowed.
- All non-exempt employees will receive overtime cash pay, unless the employee, at his/her discretion,completes an Overtime Leave Agreement indicating he/she wishes to receive leave. Wage employees are not eligible for leave and must receive cash. The maximum accrual for overtime leave is 240 hours, unless the employee is in Law Enforcement. In that case the maximum accrual is 480 hours. Any additional hours worked must be paid as cash.
- Classified non-exempt employees with Compensatory Leave Balances will be asked to verify their current balance. Once verified, the balance will be transferred to the overtime leave category. This will be a one time action.
- Classified non-exempt employees working additional hours in a week in which leave is taken, should reducethe number of leave hours taken on their timesheet. Classified non-exempt employees working additional hours in a week in which a holiday falls, should receive an alternate day off in the same week, whenever possible.
- Classified employees, both exempt and non-exempt may accumulate no more than 96 hours of compensatory time. Compensatory time expires one year from the date it is earned.
- Classified non-exempt employees are discouraged from working a classified and a second wage job. By definition, the wage job will require overtime pay for all hours worked at GMU over 40.
Supervisors should encourage employees to use overtime and compensatory leave balances as soon as is practical to reduce the potential leave liability to the University.
The Human Resources and Payroll Department will be offering sessions to provide more information. Please refer to our website at hr.gmu.edu for scheduled dates and times. You may refer specific questions to your Human Resource Generalist at 3-2600 or email Ilse Riddick at .