Learn to accurately calculate regular rates under FLSA to reduce compliance risks.
It is important to take the time to learn and understand some of the common issues under the Fair Labor Standards Act (FLSA) regarding a non-exempt employee’s hourly rate. There seems to be a misconception that a non-exempt employee’s hourly rate is the same as what the FLSA terms as regular rate using in calculating overtime premiums. The regular rate of pay must include the varying forms of supplemental pay employers often use to compensate its employees in addition to their hourly pay.
Supplemental pay under the FLSA includes payment of bonuses, and many employers do not understand how to distinguish between the factors that require certain bonuses. Only certain bonuses are to be included in calculating an employee’s regular rate.
This topic helps those responsible for compensation polices, timekeeping and payroll practices understand the fundamentals of what constitutes supplemental pay and the best ways to calculate properly an employee’s regular rate of pay and avoid or mitigate its liability under the FLSA.
Learning Objectives
- You will be able to discuss the basics for non-exempt employees such as calculating the regular rate of pay.
- You will be able to explain supplemental pay issues.
- You will be able to identify the consequences of failing to include supplemental pay in the regular rate of pay.
- You will be able to recognize where your organization needs to address and/or restructure its timekeeping and payroll practices.
Agenda
Overtime Basics for Nonexempt Employees- Definitions
- Explaining the Regular Rate vs. Hourly Rate
- Calculating the Regular Rate
- Examples of Supplement Pay
- Understanding the Nondiscretionary vs. Discretionary Bonuses
- Calculating the Regular Rate to Include Supplemental Pay
- Shift Differentials
- On-Call Time
- Recordkeeping Requirements
- Commuting
- Meal and Break Times
- Travel Time
- Exposure to Liability and Misclassification of Employees as Exempt
- Case Law Analysis of Supplemental Pay
- Training on Compliance With FLSA Rules on Supplemental Pay
Speakers
Jackie A. Sexson
Compliance and HR leader
- Former executive director with the legal and human resources consulting firm, The Sexson Group
- Extensive experience in employment and labor law, as well as human resources
- Experience as an attorney with HR background in employee relations, performance management (360-degree feedback), organizational management, benefits administration, recruitment and selection, compensation, equal employment opportunity, and training and development
- Experience with the public sector, Fortune 500 companies and small startup companies
- Held director and executive level positions, and worked as an independent consultant
- Certified as a senior professional in human resources by the Society for Human Resources Management
- J.D. and M.B.A. Degrees
