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General Description
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Policy Provisions
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Compensation Policies--Fair Labor Standards Act
Policy

Document Number: HR--134 Revision #: 1.0
Document Owner: Executive VP Date Last Updated: 08/17/2012
Primary Author: Director of Human Resources Status: Approved
Date Originally Created: 01/17/2012

General Description
Description:

Information about the Fair Labor Standards Act relative to HR policy.


Purpose:

Delineation of University and federal policy.


Scope:

All faculty, staff, students, and administrators


Responsibility: Human Resources

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Requirements
Relevant Knowledge: In order to comply with this policy you should know:
Federal statutes
Current University policy

Terms and Definitions: Additional training

Corrective Action

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Policy Provisions
1.

Fair Labor Standards Act


The major law affecting compensation is the Fair Labor Standard Act (FLSA). The act has three major objectives: (1) to establish a minimum wage floor, (2) to encourage limits on the number of weekly hours by covered employees work through overtime provisions, and (3) to discourage oppressive use of child labor.

 

ENFORCEMENT 

To meet requirements enforced by the Wage and Hour Division of the U.S. Department of Labor, employees of Cumberland University must keep accurate time records and maintain these records for three years. Non-exempt hourly employees should submit a time sheet on a weekly basis to ensure the correct computation, to the Payroll Office. Time sheets are available in the Payroll Office, located in the Business Office.

 

For purposes of payroll administration, the official workweek begins at 12:00 midnight on Sunday morning and ends at 11:59 on Saturday night regardless of an individuals' work schedule.

 

EMPLOYMENT FORMS

All employees, faculty and staff, of Cumberland University must complete the post employment forms and any other related forms, prior to the issue of their first paycheck. The required forms are available in the office of the Director of Human Resources. Failure to do so will result in the delay of the employee's paycheck process. Certain forms must be completed prior to the employee's first day of employment.

 

EXEMPT AND NONEXEMPT STATUS 

Under the FLSA, employees of Cumberland University are classified as exempt or nonexempt. Exempt employees are those who hold position, classified as executive, administrative, professional, or outside sales, for whom employers are not required to pay overtime. Nonexempt employees are those who are required to be paid overtime under the FLSA. All Faculty are exempt through the Professional exemption category. Administrative Officers of the University are exempt through the Executive exemption category. For a listing of all other staff positions and their status, please contact the Director of Human Resources.

 

OVERTIME PROVISIONS 

The FLSA contains overtime pay requirements. Non-exempt employees must receive overtime pay of one and one-half the employee's regular pay for all hours worked in excess of 40 per week.

 

Sometimes projects and priorities may require extra work beyond the normal schedule. Supervisors can rearrange work schedules and can require overtime when necessary to meet the operating needs of the department. Budgetary information and approval must be taken into consideration when scheduling overtime.

 

PAYMENT OF OVERTIME

Hourly and salaried non-exempt employees receive 1 ½ times their regular rate of pay for all hours over 40 worked in a single work week. Non-exempt salaried employees receive payment for 40 hours, although the normal workweek consists of 37 ½ working hours. Non-exempt salaried employees who work between 35 ½ and 40 hours will not receive additional pay.

 

All overtime must be pre-authorized in writing by the employee's immediate supervisor and approved by the Vice President in charge of the employee's area. While an employee who works unauthorized overtime will be paid for the time worked at the applicable overtime rate, the employee may be subject to discipline for failing to receive written approval for the overtime. Because it is a violation of federal law, employees may not request nor receive compensatory time in lieu of overtime.

 

Exempt faculty and salaried staff members are excluded from the overtime provisions of the Fair Labor Standards Act (FLSA).

 


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Performance Evaluation
Performance Metrics: Compliance with standard policy and procedure
Compliance with federal mandate

Consequences: Further training

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Subject Experts
The following may be consulted for additional information.
Director of Human Resources

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