Personnel Policy Service, Inc.

about us > hr management articles > FLSA > Guidance on Pay


 

See How It Works

 

See how we help others like you access model policies, make confident HR decisions quickly, stay ahead of changing requirements easily and get answers to tough HR questions instantly. Learn more, click here

 
 

Why We are the HR Compliance Experts?

 

“I just got back from a 3-hour lunch meeting where I reviewed with a vice president all the changes in our benefits and services policies that will appear in the next iteration of our Employee Handbook. I could speak with knowledge, confidence and authority largely because of your Personnel Policy Manual with all of its supporting guidance and documentation. You are my #1 resource when it comes to policies. Keep up the good work!”
 
Don Jones
Director of Human Resources
Columbia International University
Columbia, SC

See how it works...

 
 

HR Policies & Labor Law Posters

· Attendance
· COBRA Requirements
· Dress Code
· Drugs/Narcotics/Alcohol
· Employee Classification
· FLSA Compliance
· FMLA Checklist
· Workplace Smoking
· Holiday
· Internet/Email Communication
· Layoff and Recall
· Military Leave
· Pay Procedures
· Rest Breaks
· Sexual Harassment
 

  HR Policies, Labor Law Posters FREE

 
 
 

Topics

· ADA
· Affirmative Action
· FLSA
· Sexual Harassment
· Wage and Hour

More HR topics? Visit or HR Forum

 
  Contact Us

Email: info@ppspublishers.com
Site: www.ppspublishers.com
        www.instanthrpolicies.com
        www.hrpolicyanswers.com

        www.hrmattersblog.com

personnelpolicyservice.com/hrforum
 

 

 

 

-------------------------------------------------------------------------------------------
(New Online Version)
Personnel Policy Manual System
+
HR Matters Tools and Resource Center

For over 35 years, many of our subscribers have referred to the print/cd versions of our Personnel Policy Manual system as their “HR Policy Bible.”
 
Now, we’ve gone one step further and developed the ultimate policy and compliance solution. You have a one-stop online database that not only includes the new electronic version of the “HR Policy Bible,” but all our supporting databases of subscriber information and compliance tools.
 
It’s a true turnkey policy and handbook solution – available 24/7 – one that makes you an instant expert. Create a free account now.
                -------------------------------------------------------------------------------------------

FLSA Cases Provide Practical Guidance on Pay
Free Download: How to Comply with FLSA Minimum Wage & Overtime Requirements

Number of Employees, Overtime Frequency Defeat De Minimis Rule
Tenth Circuit Applies Three-Factor De Minimis Tes
t
Apply Three-Factor Test to Determine Paid Time
Changing Payday Does Not Violate FLSA
Employees Allege Minimum Wage, Overtime Violations
Four-Part Standard Used For Changing Paydays
Apply Standard; Check Applicable State Laws

Two decisions interpreting the FLSA provide employers with guidance on what time must be counted as paid, working time and when an employer may change its payday schedule. In both cases, the courts provided tests that employers can use in evaluating their own decisions on these issues.

[Creating HR Policies or Employee Handbook?]

An employer who did not pay for preliminary and postliminary duties owes current and former employees $1.5 million in unpaid overtime wages, according to the Tenth Circuit Court of Appeals in Reich v. Monfort Inc., Nos. 96-1544 and 97-1028 (5/22/98). In reaching its conclusion, the court provided employers with a three-factor test to interpret the de minimis exception to the Fair Labor Standards Act ("FLSA").

Number of Employees, Overtime Frequency Defeat De Minimis Rule                            [Download Free Policies]

Workers at the employer’s Colorado meat processing and packing plant were required to put on various items of safety equipment and sanitary clothing before beginning their shift and remove the items and clean equipment when the shift ended. These preliminary and postliminary activities added about 10 minutes daily to each employee’s work day. From 1989 to 1993, the period covered by this lawsuit, between 1500 and 1700 employees worked at the plant.

During trial at the district court level, the employer maintained that these tasks were not compensable under the de minimis exception to the FLSA. Under regulations to the FLSA, preliminary and postliminary activities that are part of the principal activity are considered working time that must be paid. However, the courts have determined that accounting for this time presents administrative difficulties, so they have established the de minimis exception. The de minimis rule recognizes that employers should not have to pay for time considered to be so insubstantial and insignificant that it cannot, as a practical administrative matter, be precisely recorded for payroll purposes. The district court found the de minimis rule did not apply in this case because of the large number of employees involved and the daily frequency of the tasks. The district court ordered the employer to pay back wages to the affected current and former employees, and the employer appealed to the Tenth Circuit.

Tenth Circuit Applies Three-Factor De Minimis Test

The Tenth Circuit Court of Appeals upheld the district court’s decision. In considering if the time is de minimis, the Tenth Circuit applied a three-factor test. The court considered (1) the practical administrative difficulty of recording the additional time; (2) the size of the claim in the aggregate; and (3) whether the claimants performed the work on a regular basis. In its evaluation, the court acknowledged the administrative difficulty in recording the time. However, the court determined that the second and third factors, namely the number of employees involved and the daily occurrence of the preliminary and postliminary activities, made the time in question compensable time.

Apply Three-Factor Test to Determine Paid Time

Employees’ principal activities that should be paid time include those closely-related activities which are indispensable to an employee’s performance. Employers should examine workers’ preliminary and postliminary activities to determine if they meet this definition. If so, employers should use the three-part test to determine if the activities qualify for the de minimis exception. If it is administratively possible to record the time and if a significant number of workers perform the tasks on a regular basis, these preliminary and postliminary activities probably will be considered compensable time.

Changing Payday Does Not Violate FLSA

In another FLSA interpretation, the Second Circuit Court of Appeals determined that an employer who changed the payday schedule permanently for administrative reasons did not violate the FLSA. In its decision in John F. Rogers v. Troy, N.Y., No. 97-7120 (5/22/98), the court relied on the FLSA regulations regarding workweeks and the payment of overtime and developed a four-part standard to be met when an employer changes paydays.

Employees Allege Minimum Wage, Overtime Violations

For administrative reasons, the Troy city officials decided to adopt a uniform payday for both civilian workers and police officers. The city phased in the new payday schedule by delaying the police officers’ pay by one day each week for five weeks. The police officers filed suit, charging the city violated the FLSA by not paying them promptly. The district court dismissed the officers’ claim by determining that the payday change was permanent and not designed to sidestep the FLSA. The officers appealed to the Second Circuit.

Four-Part Standard Used For Changing Paydays

In its decision, the Second Circuit focused on the issue of whether an employer can change the payday. While the FLSA requires prompt payment of wages, it does not specify when wages must be paid. In the absence of statutory direction on this issue, the court looked to the FLSA regulation regarding the beginning and ending of the workweek for purposes of calculating overtime wages. According to the regulation, an employer may change the beginning and ending dates of the work period as long as the change is permanent and is not an attempt to sidestep the FLSA’s overtime requirements. Relying on this analysis, the court developed a four-part standard for changing paydays. Specifically, the payday change does not violate the FLSA if it (1) is made for a legitimate business purpose; (2) does not result in an unreasonable delay in payment; (3) is intended to be permanent; and (4) does not violate the minimum wage or overtime provisions of the FLSA.

Apply Standard; Check Applicable State Laws

This case provides a four-part test employers can use to ensure payday changes comply with the FLSA. However, employers should note that most state laws have payday requirements that specify when wages must be paid. Thus, employers also should check applicable state law for details.

 

Get your FREE access to this and 100's of FREE HR resources today. Create a free account for the Personnel Policy Manual System.

Handbook/Policy Writing, HR Best Practices, Legal Compliance try the Personnel Policy Manual System.

 

This article is not intended as legal advice. Readers are encouraged to seek appropriate legal or other professional advice.

 
Try a Free No-Risk 30-Day Trial Review Now
Personnel Policy Manual Service
Your HR policy solution for writing, revision, and legal compliance
Available in Print or CD

You get all the resources you need for easy policy writing and employment law compliance. Our comprehensive time-and-money saving service helps you:

  • Create, revise, and update your HR policies;

  • Plug into the best HR practices and trends;
  • Stay on top of employment laws, regulations, and court cases;
  • Avoid unnecessary legal exposure; and
  • Build policy and compliance expertise.

Request a 30-day risk-free review now. See first hand how the Personnel Policy Manual service will become your most trusted HR business advisor.

Price: $457 (Free Shipping)

Risk-Free: You pay nothing unless totally satisfied. At the end of 30 days, either pay the invoice to continue your subscription, or simply return the manual and owe nothing.

To request your 30-day free trial online, just fill in the form below and submit. Otherwise, just call our friendly customer service department at 1-800-437-3735 (9:00-5:00 Eastern Time). We’ll be happy to process your request or answer any questions you might have.

Fill out this form and submit:
* indicates required fields

Your Subscription Includes:

* 800-page HR Policy Manual
   (print/CD)
*
Monthly updates
*
Monthly HR Matters newsletter
*
HR Matters E-Tips

 

View Sample HR Policy

 

100% Money Back
Guarantee of Satisfaction
Good for a FULL YEAR!

 

Less than 15 employees? OR
Outside US? Click here

Format:
Print
Online
Both Print and Online
First:
Last:
Title:
Business or Organization:
Street Address:
Street Address 2:
City:
State:
Zip Code:
Country:
Business Phone:
Business Fax:
Email:
Number of Employees:
 

 

 
 

Create Employee Handbooks.
Use the l
eading producer Employee Handbooks and company policies

For one low price, you get the tools and peace of mind you need to get the job done quickly and easily.
 
* 69 ready-to-go policies
* Use "as is" or customize for your organization
* Lawyer-reviewed for U.S. law
* Ideal for employee handbooks
* 100% satisfaction, or your money back
 
Less than 15 employees? OR
Outside US? Click here

 
Learn more about Instant Employee Handbooks/HR Policies

 

Take a FREE Trial for 30 Days!

(Service Available in Print or CD)

Personnel Policy Manual

 
  * Solid Legal Information
* Plain-English explanations
* Sound Policy advise
* Easy-to-use topic lists
* Great research tool
* Free Checklists, Forms, Posters

Bonus:

Toll-free HR support

 
  Learn how we can help. Click here.
 

Easy Employee Handbook & HR Policies

Do You manage Key Employee Issues? Less than 15 employees? OR Outside US? Click here. Use our topic list below to easily locate the right HR policy product.

* Absence
* Benefits
* Conduct
* Employment
* Pay Practices

* Personnel Responsibilities
* Reimbursement
* Work Areas
* Miscellaneous

 

Get your employee handbook Now!

 
 

Download HR Policies Now

Absence
Attendance and Punctuality
Short-Term Absences
Leaves of Absence
Rest Breaks
Meal Breaks
Benefits
Disclosure of Benefits
Vacations
Holidays
Lunch Facilities
Educational Assistance
Employee Counseling
Recognition Awards
Company Products
Relocation
Athletics and Recreation
Conduct
Behavior of Employees
Appearance of Employees
Finances of Employees
Customer Relations
Use of Communications
Conflicts of Interest
Confidentiality
Disciplinary Procedure
Drugs, Narcotics, Alcohol
Employment
Equal Employment Opportunity
Sexual Harassment
Hiring
Employment Agreements
Orientation and Training
Medical Procedures
Serious Diseases
Introductory Period
Transfer
Promotion
Hours of Work
Outside Employment
Employee Classifications
Layoff and Recall
Termination
Retirement
Miscellaneous
Personnel Records
Community Participation
Suggestion Program
Dispute Resolution
Pay Practices
Salary Administration
Performance Appraisals
Severance Pay
Job Evaluation
Pay Procedures
Personnel Responsibilities
Model Cover
President’s Letter
Functions of this Manual
Employee Supervision
Personnel Manager
Employer-Employee Relations
Employment-At-Will
Reimbursement
Travel
Automobile Usage
Business Entertaining
Meal Reimbursement
Clubs and Civic Organizations
Trade and Professional Associations
Work Areas
Employee Safety
Maintenance of Work Areas
Personal Property
Solicitation
Parking
Security
Smoking
Special Reports
New FLSA Regulations: Understanding the Issues

 

 Search      Advanced Search

 

Employee Handbook Template

Create Employee Handbook

Easily. Over 69 legally researched HR policies

 

Download Word/Text versions Immediately!

 

Nothing to loose. 100% Money Back Guarantee

 

Easy to use. Affordable.

   Special offer. Download Now!

 
 
 
     

Personal Liability HR Blog | Personnel Policies | Employee  Manual | HR Matters newsletter | HR Compliance Tips | Employee Manual (CD-ROM)
Easy to Create Employee Handbook | Management & Compliance  Tips| Human Resource Management | Links | Employment Law

 Company Policy | Employee handbook | Hr Policy | Download HR Policies  | Corporate Employee Handbooks | Download Employee Handbook