Reviewing and Updating FLSA Status for Employees With Multiple Job Records in HRS
Overview
The FLSA Status indicates if an employee is considered Exempt or Non-Exempt for overtime. The FLSA status is based on person NOT job. Therefore if an employee has 4 active jobs, all 4 jobs must have the same FLSA status. The FLSA Status should be determined based on the employee's primary job and other other jobs should follow that FLSA Status.Process Considerations:
- Due to the 1/1/2020 FLSA Federal Regulation changes, if an employee has more than one active job record the FLSA Status will need to be consistent through all job records because the FLSA Status is based on person NOT job. To determine FLSA Status for multiple active job records, review the following:
- Employee's primary job based on the HRS Primary Job Indicator field, Benefits Primary field and/or FTE.
- Employee's combined salary for all active jobs. If the combined salary is below the FLSA Threshold Exemption Amount $35,568 (based on the 1/1/2020 Federal Regulations), then the user needs to determine if the FLSA Status should be Exempt or Non-Exempt. If the employee is under threshold amount AND it is believed the employee should be Exempt, then the FLSA Threshold Exemption reason needs to be added in Job Data. If it is determined the FLSA Status should be considered Non-Exempt then the rate of pay may need to be changed from monthly to hourly.
You may click on the links below to navigate directly to a section:
Instructions
- Navigate to Job Data: WorkForce Administration > Job Information> Job Data enter in EMPLID
- Review ALL Active job records and the FLSA Status' associated with each record. (FLSA Status is located on the Job Information tab - select the USA flag).
- Determine the primary job of the employee and notate the FLSA Status
- Ensure that the Primary FLSA Status is consistent with FLSA regulations
- If the employee makes more than $35,568 annually based on all active jobs, then the FLSA Status can be Exempt.
- If the employee makes less than $35,568 based on all active job records AND the Primary Job code is exempt from FLSA regulations - aka Doctor, Teacher, Lawyer, etc, then the FLSA Status can be Exempt. However, the FLSA Threshold Exemption field in Job should be updated. See KB 99403
- If the employee makes less than $35,568 based on all active job records AND the Primary Job code is NOT exempt from FLSA regulations, then the FLSA Status should be Non-Exempt
- Review other active FLSA job statuses to ensure they are consistent with the primary job's FLSA status. If the FLSA Statuses are accurate AND consistent, no further action required. If inconsistent or inaccurate due to FLSA Regulations, proceed to step 6 below.
- Copy the Position Number(s) for the employee where the FLSA Status is inconsistent with the employee's primary job
- Navigate to Add/Update Position Info: Organizational Development > Position Management > Maintain Positions/Budget > Add/Update Position Info
- Enter in Position number
- Insert a row
- Enter in Effective date which should be the 1st of the following month. Ex: If this report was run on 3/23/2020, then the Effective date in Add/Update Position Info should be 4/1/2020
- Reason should be "070" - "Change FLSA Status"
- Select the USA flag at the bottom left
- Update the FLSA Status to Nonexempt or Exempt as appropriate
- Select the Specific Information tab
- Ensure that Update Incumbents is checked
- Select the Budget and Incumbents tab
- Select Save
- Select Job Data link in the Current Incumbents section - Jobs Data will pop up
- Insert a new row with an Effective Date that matches the date used in Position
- Update the Effective Sequence to 1
- Action = "Pay Rate Change"
- Reason = "Difference Pay Basis"
- Select the Job Information tab in Job Data
- Select the USA Flag, ensure the correct FLSA Status pulled in properly. *If not, go to Work Location and insert a row with the current date as the effective date and delete out position, exit the field and re-add the position. This should refresh the FLSA Status field,
- Go to Compensation tab
- Update the compensation rate to the appropriate rate (monthly or hourly)
- Change Frequency to H for Hourly or for M Monthly
- Select Default Pay Components
- Update the Rate Code to NAHRLY for hourly or NAANNL for annual
- Enter in Comp Rate (based on hourly or annual rate)
- Converting Hourly to non C-Basis Monthly: Take most recent hourly Comp Rate * 2080 (number of hours for a FT employee) = New Comp Rate
- Converting Hourly to C-Basis Monthly: Take most recent hourly Comp Rate * 1560 (number of hours for a FT C-Basis employee) = New Comp Rate
- Converting 9M C-Basis Monthly to Hourly: Take most recent Comp Rate / 1560 Take most recent Comp Rate / 2080(number of hours for a FT employee) = Hourly Rate. If any digits appear after the 2nd decimal round up. Ex: $17.121348 would be $17.13.
- Select the Calculate Compensation button
- Select Save