FAIR LABOR STANDARDS ACT (FLSA) COMPLIANCE POLICY PURPOSE: To identify the Fair Labor Standards Act (FLSA) exemptions, as applied by the City of Brookfield, and to define the procedures for accrual and use of overtime compensation and compensatory time, and for payroll deductions pursuant to the Fair Labor Standards Act (FLSA).
SUMMARY: The Fair Labor Standards Act (FLSA) was enacted by the United States Congress in 1938 and sets the minimum wage, overtime pay, equal pay, record keeping and child labor standards for employees who are covered by the Act. Additionally, the FLSA classifies employees into two main categories: exempt and non-exempt; which determine the positions that should be paid overtime. Wisconsin law covers many of the same compensation issues as the FLSA. The City of Brookfield will coordinate compliance with both laws and adhere to the standard that provides the greater protection to employees. Certain City of Brookfield collective bargaining agreements provide for overtime compensation in circumstances the FLSA or Wisconsin law would not require. In all such instances, the terms of the collective bargaining agreement shall prevail.
OVERTIME COMPENSATION: NON-EXEMPT EMPLOYEES: Employees are covered by the Fair Labor Standards Act (FLSA) and considered non-exempt unless their position meets one of the exempt definitions as an executive, administrative, learned professional, highly compensated, exempt computer or exempt professional title and the activities directly and closely relate to such work. In order to comply with the FLSA, non-exempt employees will be paid overtime compensation [at least one and one-half times the regular rate of pay] for “all hours worked” in excess of forty (40) in a workweek. In order to receive overtime compensation, the employee must “suffer or be permitted to work”. “All hours worked” does not include, for example, holidays, vacations, sick leave or bona fide meal periods (breaks at least 30 minutes when the employee is completely relieved from duty). To “suffer or be permitted to work” means that if the City requires or allows employees to work, the time spent is generally hours worked. Thus, time spent doing work not requested by the City, but still allowed, is generally hours worked, since the City knows or has reason to believe the employees are continuing to work and the City is benefiting from the work being done, commonly referred to as “working off the clock”. EXEMPT EMPLOYEES: The following City titles contained in the Salary ordinance qualify as “exempt” from the FLSA
overtime compensation requirements for hours worked. As of January 1, 2012, these titles include: Accounting Manager Administrative Specialist Assistant Chief of Police Assistant Public Works Superintendent Children’s Services Supervisor Circulation Services Supervisor City Assessor City Attorney City Clerk City Engineer Code Enforcement Supervisor Deputy Fire Chief - Administration Deputy Fire Chief - Operations Deputy Fire Chief - Training Director of Community Development Director of Finance/Treasurer Director of Public Works Director of Parks, Recreation & Forestry Director of Services Economic Development Coordinator Engineering Project Manager Facilities Supervisor Finance Manager Fleet Manager Fire Chief GIS Coordinator Highway Superintendent Health & Productivity Manager Human Resources Director
Information Technology Director Library Director Neighborhood Planner/Urban Designer Network Administrator Parks & Forestry Superintendent Park Programs and Operations Manager Payroll and Benefits Specialist Planning Administrator Police Captain Police Chief Police Lieutenant Police Lieutenant – Community Relations Police Training Lieutenant Pretreatment/Process Supervisor Project Engineer Public Services Manager Recreation Supervisor Revenue Manager Social Worker Survey Supervisor Systems Analyst/Programmer Technical Services Manager Utility Accountant Water Operations Supervisor Water Utility Superintendent WPCC Manager WPCC Operations Supervisor Zoning & Building Administrator
SWORN POLICE AND FIRE EMPLOYEES: Sworn non-exempt Police Department employees will be paid overtime compensation at least one and one-half times the regular rate of pay for all hours worked in excess of 171 hours during their 28 day work period. As of January 1, 2012, these positions include: Police Sergeant Police Detective Police Patrol Officer Sworn non-exempt Fire Department employees will be paid overtime compensation at least one and one-half times the regular rate of pay for all hours worked in excess of 204 hours during their 27 day work period. As of January 1, 2012, these positions include: Firefighter/EMT Firefighter/Paramedic Firefighter/Equipment Operator Firefighter/Lieutenant
OVERTIME UTILIZATION: Overtime hours worked by City employees will be held to a minimum, consistent with the needs of the City and service to all citizens. Each department shall be responsible for utilizing other alternatives prior to assigning overtime to employees. Overtime work should only be authorized in the event of an emergency or when service demands result in no other reasonable alternative. Careful oversight should be exercised by managers who authorize overtime work. WORKING TIME LIMITATIONS: All non-exempt employees are required to abide by the following:
Work shall not be engaged preceding or following an employee’s scheduled hours of work, unless directed to do so by the supervisor.
Work shall not be taken home or engaged in at home unless directed to do so by a supervisor.
Work shall not be engaged during any lunch period except at the direction of the employee’s supervisor, unless the lunch period is treated as paid time in accordance with City of Brookfield regulations and/or a collective bargaining agreement.
All hours worked shall be documented on time cards or worksheets, and shall be verified.
All supervisors are responsible for reviewing and signing employee time cards to verify accuracy.
COMPENSATORY TIME: NON-EXEMPT EMPLOYEES: Each non-represented, non-exempt employee approved to receive compensatory time may accumulate FLSA overtime credit of not more than 120 hours. The City requires that nonrepresented, non-exempt employees be paid for FLSA overtime worked in excess of this limit. Represented employees are subject to limitations provided in the appropriate collective bargaining agreement. EXEMPT EMPLOYEES: Exempt employees are not eligible to receive compensatory time at the rate of 1.5x. UTILIZATION OF COMPENSATORY TIME: City managers should encourage and/or permit their staff to take their compensatory time as soon as possible. The use of compensatory time must be scheduled so as not to disrupt the work of the department. Compensatory time accrued in a non-exempt position for FLSA overtime worked must be paid upon termination of employment, or upon promotion to an exempt City of Brookfield position.
WAGE DEDUCTIONS PROHIBITED WAGE DEDUCTIONS: Improper wage deductions to exempt employees are prohibited by the City, pursuant to the FLSA. For example, deductions are not permitted for the following: Absences occasioned by the City or by the operating requirements of the City; Absences caused by jury duty; Absences caused by attendance as a witness, where an employee is under a subpoena to be present in court; Temporary military leave. The City may offset any amount received by an employee as jury fees, witness fees or military pay for a particular week against the salary due for that particular week, without loss of the employee’s salaried status. Exempt employees will not be deducted wages for jury duty in a week in which the employee performs any work. However, in instances where juries are served for extended periods of time, exempt employees will not be paid for workweeks in which they perform no work. COMPLAINT PROCEDURE: Improper wage deductions are prohibited by the City. However, in the event an exempt employee is inappropriately deducted wages or desires to file an internal wage and hour complaint, the employee shall notify his or her direct supervisor immediately. The supervisor will work with the Human Resources Department to investigate the complaint and/or to resolve the improper deduction issue and appropriately reimburse the employee. PERMITTED WAGE DEDUCTIONS: The following deductions from wages are allowed under the FLSA without affecting an exempt employee’s salaried status: Deductions from pay on any basis (i.e. by the day or even part of a day):
Suspensions for infractions of safety rules of major significance (i.e. those relating to the prevention of serious danger in the workplace or to other employees).
Deductions from pay on an hour-for hour basis:
Absence for any hours taken as intermittent or reduced FMLA leave within a workweek.
Absence when accrued leave was not approved, not used, or has been exhausted.
Absence for a budget required reason.
Deductions from pay in increments of one or more full days:
Absence for personal reasons.
Absence occasioned by sickness or disability.
Deductions for unpaid disciplinary suspensions for infractions of workplace conduct rules (such as sexual harassment, workplace violence) imposed pursuant to City of Brookfield written policies applicable to all employees. Deductions for full-workweek suspensions, regardless of the reason. RECORDKEEPING: The Human Resources Director is responsible for appropriate recordkeeping practices to ensure compliance with FLSA requirements. EXEMPTION DETERMINATION TESTS: Exemptions from both the minimum wage and overtime pay requirements of the Fair Labor Standards Act for any employee in a bona fide executive, administrative, professional, recreational, computer, or highly compensated employee position shall be determined by the Human Resources Director in consultation with the City Attorney’s Office. All other employees shall be considered non-exempt.
