Fair Labor Standards Act Time Keeping Requirments

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Knoxville’s Community Development Corporation and FLSA Timekeeping Regulations

C. Elaine Antrican

Bryan College

Knoxville’s Community Development Corporation and FLSA Timekeeping Policy

Knoxville’s Community Development Corporation (KCDC) is the public housing and redevelopment authority for the City of Knoxville and Knox County. Several years ago, KCDC decided to use the exception method for tracking the time of their hourly or non-exempt staff. The agency does not require that employees submit a timesheet each pay period. The pay periods are a two week time frame. If the employee takes time off from work, a leave slip is submitted to the payroll department with the employee’s signature and the supervisor’s signature. All non-exempt employees are considered to have worked a full week unless a leave slip is submitted. There are a few employees who work overtime hours or have jobs that are allocated among the different departments/developments. Those employees submit a time sheet. KCDC has a staff of approximately 150 employees. About 20 employees regularly submit time sheets. This paper examines whether this policy conforms to the U.S. Department of Labor Fair Labor Standards Act recordkeeping requirements. Literature Review

Every employer faces the task of establishing a timekeeping policy related to their employees. First, employers must determine the proper classification of their employees. The U.S. Department of Labor Wage and Hour Division allow two types of classifications (U.S. Department of Labor). They are exempt and non-exempt employees as defined by the Fair Labor Standards Act (FLSA). The FLSA requires that all employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek unless specifically exempted. An exempt employee is paid on a salary basis. Pay is not associated with the quality or quantity of work of the employee’s work. The predetermined salary amount may not be reduced. There are seven exceptions to this policy. KCDC has classified their staff appropriately into these two groups. The FLSA has established recordkeeping requirement. There are fourteen basic records that an employer must maintain. Hours worked each day is number six on the list. These requirements can be found in 29 CFR Part 516. Employers are permitted to use any timekeeping method they choose. Examples of timekeeping can include the use of a time clock, a timekeeper to track employee’s work hours, or have workers record their own times on manual records. The regulation requires any timekeeping plan to be complete and accurate. The FLSA also discusses employees on a fixed schedule. The FLSA states that the employer may keep a record showing the exact schedule of daily and weekly hours and merely indicate that the worker did follow the schedule. When a worker is on the job for less than or more than the schedule shows, the employer must record the number of hours that worker actually worked, on an exception basis. Another article discusses the top three FLSA violations and how to avoid them. The second section of the article demands that employers count every hour. Lambert highlights many different hours worked by employees that are consider ‘hours worked.’ Examples of hours that may need to be considered hours worked are travel time, meetings/lectures, on-call time and waiting time. Vacation, sick pay and holidays are not required for payment under FLSA. Lambert does not discuss the exception method for tracking time. The timekeeping method examples include time clock, a timekeeper to track employees’ work hours or workers recording their own times on the records. Any timekeeping plan is acceptable as long as it is complete and accurate. The absence of any recordkeeping would not meet the guidelines for complete and accurate (Lambert, 2008)....
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