OVERTIME PAY POLICY CHANGES

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OVERTIME PAY POLICY CHANGES
Presenter Amanda Louks, UMHHC Payroll
Supervisor Policy Expert Kevin Newman, HSHR
Consultant
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OVERTIME PAY POLICY CHANGES

• Agenda
• Educate TKs, Supervisors, and others about
  policy changes
• Provide Job Aids (TRC lists, this presentation)
• Information about 8/80 overtime rule, who is
  eligible, who is not, how to apply, compliance
• Review scenarios, ask/answer questions
• Review changes to overtime pay for
  Service/Maintenance Employees covered under the
  AFSCME agreement, scenarios, questions.

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OVERTIME PAY POLICY CHANGEShttp//www.finops.um
ich.edu/payroll
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NON-BARGAINED/NON-EXEMPT

• 40 hour employee who does not work the holiday,
  but picks up extra shift on Saturday
• Days         S       M         T        W      
    TH       F      SAT    
• Schedule    0        8         8        8    
      8        8  0
•      
• Actual        0        8        0        8  
       8    8       8
• Record       0      8REG    8HOL   8REG    8REG
  8REG 8OTR   
•   
•                                                
                             32REG
•                                                
                                  8HOL
• 8OTR    

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NON-BARGAINED/NON-EXEMPT

• 40 hour employee who does work the holiday and
  picks up an extra shift Saturday (Note the OTP
  for working the holiday is not counted in the
  calculation of time worked for extra hours on
  Saturday to avoid pyramiding)
• Days         S       M         T        W      
    TH       F      SAT    
• Schedule    0       8         8        8    
      8        8  0
•      
• Actual        0       8        8        8  
       8    8       8
• Record       0     8REG    8HOL   8REG    8REG
  8REG 8OTR
• 8OTP   
•                                              
                             32REG
•                                                
                                  8OTR
• 
  8HOL
• 
  8OTP   

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works the holiday and then
  has 2 extra hours on Friday (Note the OTP for
  working the holiday is not counted in the
  calculation of time worked for extra hours on
  Friday to avoid pyramiding)
• Days         S       M         T        W      
    TH       F      SAT    
• Schedule    0       8         8        8    
      8        8  0
•      
• Actual        0       8        8       8     
    8    10    0
• Record       0     8REG    8HOL   8REG    8REG
  8REG
• 8OTP   
  2OTR
•                                              
                             32REG
•                                                
                                  2OTR
• 
  8HOL
• 
  8OTP   

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S       M        T         W        
  TH       F      SAT    
• Schedule   0       8        8       8    
      8        8  0
•      
• Actual       7       8       5.5       8   
  8 6.25      8
• 2.5pts 1.75pts
• Record     7reg 8reg 5.5reg 8reg 7.25reg
  3.5otr 8otp
• 2.5pts
  .75otr 2.75otp
• 
  1.75pts
• 35.75 reg
• 4.25 pts
• 4.25 otr
• 10.75 otp                             

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NON-BARGAINED/NON-EXEMPT

• Thought process
• Regarding Exception Pay (employees paid based
  on standard hours, all except temps)
• Report OTR in order to reach 40 hours worked
  before reporting OTP when there are non-worked
  hours reported as part of the appointment and if
  employee is part-time

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NON-BARGAINED/NON-EXEMPT

• Points to consider
• In a true flex environment the employee wouldnt
  take PTO if they are working at least up to their
  appointment for the week
• Report PTO only if they dont make their
  appointment for the week or if employee has an
  attendance issue that needs to be tracked
• Dept guidelines written and followed consistently

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S       M        T         W        
  TH       F      SAT    
• Schedule   0       8        8       8    
      8        8  0
•      
• Actual       7       8       5.5       8   
  8 6.25      8
• Record     7reg 8reg 5.5reg 8reg 8reg
  3.5reg 8otp
• 2.75otp
• 40 reg
• 10.75 otp                             

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NON-BARGAINED/NON-EXEMPT

• Example
• I am 40 hours per week. I had 24 hrs PTO time
  scheduled and I worked 20 hrs.  I take 44 (total
  hours I need to be paid) less 40 hours paid by
  exception, so I need to be paid 4 extra hours.
• Are they OTP or OTR? Was my total worked hours
  greater than 40? 
• No, so it's OTR for 4 hours.

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S        M        T         W      
    TH       F      SAT    
• Schedule   0         8        8       8    
      8        8  0
•      
• Actual       4        8       8        off
  off off 0
• Record      4otr 8reg 8reg 8pts
  8pts 8pts 0
• 16reg
• 24pts
• 4otr

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NON-BARGAINED/NON-EXEMPT

• Or in a true flex environment having no
  attendance issue to track..

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S        M        T         W      
    TH       F      SAT    
• Schedule   0         8        8       8    
      8        8  0
•      
• Actual       4        8       8        off
  off off 0
• Record      4reg 8reg 8reg 8pts
  8pts 4pts 0
• 20reg
• 20pts

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S        M        T         W      
    TH       F      SAT    
• Schedule   0         8        8       8    
      8        8  0
•      
• Actual       0 8 16 8
  8 8 0
• 7a-3p M11p-T3p 7a-3p
  7a-3p 7a-3p
• Record  0 8reg    16reg 8reg
  8reg 8otp

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NON-BARGAINED/NON-EXEMPT

• OLP (Overlap), goes away because paying OTP
  (overtime 1 ½ rate), when working over 8 in a day
  went away with the Overtime Policy change

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NON-BARGAINED/NON-EXEMPT

• 40  hour employee who works M-F
• Days        S        M        T         W      
    TH       F      SAT    
• Schedule   0         8        8       8    
      8        8  0
•      
• Actual       0 8 8 8
  8 8 0
• 7a-3p M11p-T7a 7a-3p
  7a-3p 7a-3p
• Record  0 8reg    8reg 8reg
  8reg 8reg

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NON-BARGAINED/NON-EXEMPT

• Record Questions?

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Guidelines for 8 and 80 Overtime Rule

• Dept of Labor Definition
• Under the "8 and 80" system, the nursing care
  facility may pay employees -- with whom they have
  a prior agreement -- overtime for any hours
  worked after more than 8 hours in a day and more
  than 80 hours in a 14-day period

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Guidelines for 8 and 80 Overtime Rule

• Expanded Definition
• The Act entitles hospitals, nursing homes, and
  other healthcare providers that care for
  inpatients to enter into agreements with their
  employees whereby the employees will be paid
  overtime compensation at a rate of 1 ½ times
  their regular rate of pay for each hour worked in
  excess of 8 hours in a work day and 80 hours in a
  14 day period

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Guidelines for 8 and 80 Overtime Rule

• Who is eligible
• Employees who work in an inpatient hospital
  setting that operates 24/7 and whose job requires
  them to work a special schedule because of the
  24/7 nature of operation (e.g. security or
  patient care personnel).

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Guidelines for 8 and 80 Overtime Rule

• Who is not eligible
• Employees at outpatient or ambulatory care
  facilities (i.e. off-sites, clinics)
• If there is a question of whether or not your
  employees are eligible, call your HR consultant
  for advisement

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Guidelines for 8 and 80 Overtime Rule

• Purpose of 8 and 80 exception to the over 40
  rule
• It benefits healthcare facilities by allowing
  them to avoid unnecessary overtime pay caused by
  requirements of a 24/7 operation
• Offers eligible employers flexibility to cover
  the staffing needs in a 24/7 healthcare
  environment

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Guidelines for 8 and 80 Overtime Rule

• Other provisions for compliance
• 8/80 does not have to be permanent, however, the
  regulations strongly discourage changes from a 7
  day workweek to the 14 day period and back again.
  
• Must be implemented at least for a substantial
  period of time (No Flip Flopping of the rule
  whenever its convenient)

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Guidelines for 8 and 80 Overtime Rule

• What is a substantial period of time?
• HSHR Compensation recommendation
• Give 30 day notice before switching from and 8/80
  overtime rule to the over 40 in a workweek
  overtime rule
• Have a written agreement with employee in place
  before using the 8/80 overtime rule

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Guidelines for 8 and 80 Overtime Rule

• If you are currently using the 8/80 rule to pay
  overtime
• Have a conversation with your HR consultant in
  order to make sure your department is in
  compliance with its practices
• Get written agreements in place if currently
  using the rule to ensure understanding and
  compliance with regulations

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Guidelines for 8 and 80 Overtime Rule

• Compliance for employees with multiple
  jobs/appointments/record numbers
• All jobs must meet eligibility requirements for
  using the 8/80 overtime rule
• All jobs must use the same overtime rule
• Communication between depts
• Written agreement in place for all appointments

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8 and 80 overtime rule examples

• Days           S       M         T         W   
       TH       F      SAT    
• Worked      8        8        0       8  
      8   9        8
• Record       8reg  8reg 0 8reg
  8reg 8reg 8reg
• 
  1otp
• Days           S       M         T        
  W         TH       F      SAT    
• Worked      0        8        0        
  8       8   8        8
• Record        0 8reg 0
  8reg 8reg 8reg 8otp

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8 and 80 overtime rule examplesAny Examples you
have that you want to go over?

• Days           S       M         T         W   
       TH       F      SAT    
• Worked      
• Record       
• Days           S       M         T        
  W         TH       F      SAT    
• Worked      
• Record        

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8 and 80 overtime rule examplesAny Examples you
have that you want to go over?

• Days           S       M         T         W   
       TH       F      SAT    
• Worked      
• Record       
• Days           S       M         T        
  W         TH       F      SAT    
• Worked      
• Record        

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8 and 80 overtime rule examplesAny Examples you
have that you want to go over?

• Record Questions?

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• Overtime time and a half, (OTP) is paid when
• Working over 8 hours in a day unless the employee
  has an alternate schedule (i.e. working four 10s
  M-Th), or has an agreement in place to flex hours
  within the week per written request and approval
  by supervisor (a request must be submitted for
  each schedule change that needs to be waived)
• Worked hours plus any Holiday or Jury Duty hours
  exceeds 40 hours in the workweek
• Additional work schedule is mandated, Mandatory
  Overtime is paid at one and a half times the
  employees hourly rate regardless of total work
  hours in the week
• Exception permitted under FLSA for Survival
  Flight Dispatchers-3 week rotation of 36, 36, 48
  with no more than 1020 hours in a 6 month period

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• These are the TRCs that are used to Calculate OT
  for Service/Maintenance employees covered under
  the AFSCME agreement
• ECW Emergency Closing-Wkd
• HOL Holiday
• HPB Hospital Business
• HSB Holiday Substitution
• JRD Jury Duty
• OTR Overtime 1.0
• REG Regular
• SEW Season Day Worked
• UBS Union Business

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• OTM Overtime 1.5 Mandatory  Per Article 10,
  this new time reporting/earnings code is to be
  used to report mandatory overtime.  An employee
  is paid at the time and one-half rate for all
  Mandatory overtime hours worked, even if they
  work less than 40 hours during the workweek. 
  These hours can be reported on the employees
  Timesheet page by the unit Timekeeper.
• OBP One Time Bank Payout  Per Article 24, this
  new earnings code will be used to pay AFSCME
  employees up to a maximum of 40 One-Time Bank
  hours upon retirement.  For Plant employees,
  these payments will be initiated by the Plant
  Payroll Office via an off-cycle request.  For
  Hospital AFSCME employees, these off-cycle
  payments will be initiated by the Hospital
  Payroll Office.  For all non-Plant Campus AFSCME
  employees, these payments will be initiated by
  the Timekeeping Area of the University Payroll
  Office, upon retirement of the employee.  

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• 40 hour employee who does not work the holiday,
  but picks up extra shift on Saturday
• Days           S       M         T        
  W         TH       F      SAT    
• Schedule     0        8         8         8
          8        8 0
•      
• Actual         0        8        0        
  8       8   8        8
• Record        0      8REG   8HOL   8REG    8REG
  8REG 8OTP   
•   
•                                                
                            
  32REG
•                                                
                                
  8HOL
• 8OTP
•    

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• 40 hour employee who does work the holiday and
  picks up an extra shift Saturday (Note the OTP
  for working the holiday is not counted in the
  calculation of time worked for extra hours on
  Saturday to avoid pyramiding)
• Days         S       M          T       
  W         TH       F      SAT    
• Schedule     0       8          8        8
          8         8 0
•      
• Actual        0       8        8        
  8        8  8       8
• Record       0       8REG    8HOL   8REG    8REG
  8REG 8OTP
• 8OTP   
•                                              
                            
  32REG
• 
  
  8HOL
• 
  
  16OTP   

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• 40  hour employee who works the holiday and then
  has 2 extra hours on Friday (Note the OTP for
  working the holiday is not counted in the
  calculation of time worked for extra hours on
  Friday to avoid pyramiding)
• Days         S       M        T       
  W         TH       F      SAT    
• Schedule     0       8          8         8
           8      8  0
•      
• Actual         0       8        8       
  8        8    10    0
• Record        0     8REG    8HOL   8REG   8REG
  8REG
• 8OTP  
  2OTP
•                                              
                            
  32REG
•                                                
                                 
  8HOL
• 
  
  10OTP   

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• Days         S       M        T       
  W         TH       F      SAT    
• Schedule     0       0          8         8
           8      8  8
•      
• Actual         0       8        8JRD   8  
       8    10    8PTS
• Record         0   8reg 8JRD 8reg
  8reg 8OTR 8PTS
• 
  2OTP
• Gets OTP on Friday for working over 8 in a day
• Gets OTR on Friday due to PTS day on Saturday
• Actual worked hours not including OTP, plus Jury
  Duty do not exceed 40 in the workweek

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SERVICE/MAINTENANCE COVERED UNDER AFSCME AGREEMENT

• Record Questions?