CASE-1 EMPLOYEES WITH WEEKLY FLSA ASSESSMENT#
These groups of employees are probably the most common and require no special period assessment other than the legislative requirement of ‘7 consecutive days’. The seven days will begin on the ‘First Day of the Week' derived from the work rule associated with the group.FLSA legislation requires that each week is assessed independently for hourly employees; therefore hours MUST be entered for each week of the FLSA period. For pay periods longer than one week, all hours must be recorded in the FLSA week in which they are worked. This will work well for weekly and bi-weekly hourly employees, and of course, be far more difficult for ‘Hourly’ employees paid semi-monthly or monthly.
This case study illustrates the set up of hourly employees paid weekly.
- FLSA Premium Pay Component
- A pay component MUST be set up to store any computed FLSA premium hours.
- FLSA Hours Pay Component
- A pay component may be set up to store any computed FLSA premium amounts. These are not 'actual' hours worked, but the hours used during FLSA assessment to compute the FLSA premium.
- FLSA Pay Point Task
- The Pay Point set must contain the FLSA task at the stage where you want it invoked. This would normally be just before taxation. This task will be inserted into those pays where an FLSA Period End Date falls within the Pay Period Begin and End Dates.
- FLSA Regular Hours Element
- There are four FLSA hours elements that may be set up.
- It is not a requirement to set up all four, since it is only the total of these four that is used in the FLSA premium assessment.
- In this example, 'Regular' and 'OT' have been created.
- FLSA Overtime Hours Element
- If overtime is being calculated at a rate greater than the FLSA rate then it may negate the FLSA being calculated.
- For example, if FLSA is to be paid at a rate of 1.5, and an employee has already been paid at a rate of double time then the FLSA calculation will determine an 'overpayment'.
- The employee pay will not be adjusted if there is a negative FLSA Premium, but a message will appear in the UPCALC report
- FLSA Regular Earnings Element
- The FLSA premium Pay Component is NOT part of the FLSA Regular Earnings Element.
- You MUST ensure that this is done, otherwise the re-assessment process subsequent to the execution of the FLSA user calculation will not correctly compute the FLSA Premium.
- The 'straight' dollars for the overtime indicated in the 'FLSA OT Hours' element should be in 'FLSA Regular Earnings' and the ‘Extended’ dollars should be in the ‘FLSA Gross Element’.
- Each Overtime PC has been set up to calculate the overtime earnings at the rate indicated as well as the straight rate for FLSA purposes.
- FLSA Gross Earnings Element
- The ‘FLSA Premium’ must be part of ‘FLSA Gross’.
- Groups (IDGR)
- The FLSA hours and rate MUST both be provided or FLSA assessment will be bypassed.
- Group Elements
- Create and indicate the elements previously discussed.
- Work Rules Set Up (IDWR)
- The ‘First Day of the Week’ MUST be provided on the work rule or the FLSA assessment will be bypassed.
- The employees in this group all begin their week on Monday and end on Sunday.
- The FLSA method must also be determined.
- This is the standard FLSA workweek of 168 consecutive hours (7 days X 24 hours per day).
- FLSA Assessment
- The following is an example of an employee who has worked 40 Regular Hours, and in addition has had 8 hours of training that is considered part of the FLSA hours.
- The actual FLSA assessment is computed as described below as seen in a ‘User Level’ trace:
- A FLSA Regular Hours 40.00
- B FLSA Overtime Hours 0.00
- C FLSA Leave Hours 0.00
- D FLSA Other Hours 8.00
- E FLSA Total Hours (A+B+C+D) 48.00
- F FLSA Regular Earnings 600.00
- G FLSA Gross Earnings 600.00
- H FLSA Factor 1.50 (from IDGR)
- I FLSA Regular Rate (F/E) 12.50
- J FLSA Adjusted Rate (H*I) 18.75
- K Excess Hours 8.00 (Actual hrs (E) - FLSA Hours (from IDGR-40))
- L Earnings for the First 40 hours 500.00 (40 X 12.50 (I))
- M Overtime Earnings (J*K) 150.00
- N Overtime Paid (G-L) 100.00
- O FLSA Premium Due (M-N) 50.00
- P User Trace: PR#-00176 Assessed FLSA Premium amount is $50.00
- Q User Trace: PR#-00177 Assessed FLSA Hours 8.00
- 'E' is used in 'I' if the FLSA Method is ACTUAL otherwise 40 would have been used.
CASE-2 EMPLOYEES WITH 3 WEEK FLSA PERIOD#
These groups of employees are typically fire fighters or police officers and require special period assessment other than the legislative requirement of ‘7 consecutive days’. These groups of employees are assigned an FLSA Calendar on the group.When pays for these employees are prepared during the audit process, an FLSA task is inserted from the Pay Point table ONLY for those pays where the FLSA period end date falls within the current pay period. In this example, only every third pay would include this FLSA assessment task.
FLSA uses the ‘Start Date’ on each pay line to determine the correct FLSA period. You must ensure that transactions are entered in enough detail (correct dates).
Only the set up that is different than in CASE 1 is presented here.
- Groups (IDGR)
- The FLSA calendar is the significant difference between these types of employees and those in CASE 1.
- Although these employees are paid every week, ONLY every third pay (Pay number 11 in this example) will invoke FLSA assessment. ;:The assessment will cover Pays 9,10, and 11.
- After assessment, the pay looks like this:
- A FLSA Regular Hours: 120.00
- B FLSA Overtime Hours: 10.00
- C FLSA Leave Hours: 0.00
- D FLSA Other Hours: 0.00
- E FLSA Total Hours (A+B+C+D): 130.00
- F FLSA Regular Earnings: 1336.22
- G FLSA Gross Earnings: 1459.33
- H FLSA Factor: 1.50
- I FLSA Regular Rate (F/E): 10.28
- J FLSA Adjusted Rate (H*I): 15.42
- K Excess Hours: 90.00
- L Earnings for the First 120 hours: 411.14
- M Overtime Earnings (J*K): 1387.61
- N Overtime Paid (G-L): 1048.19
- O FLSA Premium Due (M-N): 339.43
- P User Trace: PR#-00176: Assessed FLSA Premium amount is $339.43
- Q User Trace: PR#-00177: Assessed FLSA Hours 10.00
- 'E' is used in 'I' if the FLSA method is ACTUAL otherwise 120 would have been used.
