Wage and Hour Law: Your Company’s Not Exempt From Litigation

1,046 views

Published on

This webinar will demonstrate how the use of job analysis can help you limit your company’s risk of experiencing wage and hour issues and turn around those issues you may now face.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,046
On SlideShare
0
From Embeds
0
Number of Embeds
286
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Wage and Hour Law: Your Company’s Not Exempt From Litigation

  1. 1. Wage and Hour Law: Your Company’s Not Exempt From Litigation Speaker: Toni Locklear, Ph.D. Industrial Psychologist and Managing Director APTMetrics, Inc. Robert Lewis, Ph.D. Industrial Psychologist and Vice President APTMetrics, Inc Moderator: Mike Prokopeak Vice President, Editorial DIrector Talent Management magazine #TMwebinar
  2. 2. •  Q&A –  Click on the Q&A icon on your floating toolbar in the bottom right corner. –  Type in your question in the space at the bottom. –  Click on “Send.” #TMwebinar
  3. 3. Tools You Can Use•  Polling –  Polling question will appear in the “Polling” panel. –  Select your response and click on “Submit.” #TMwebinar
  4. 4. Frequently Asked Questions1. Will I receive a copy of the slides after the webinar? YES2. Will I receive a copy of the recording after the webinar? YES Please allow up to 2 business days to receive these materials. #TMwebinar
  5. 5. Wage and Hour Law: Your Company’s Not Exempt From Litigation Mike Prokopeak Vice President, Editorial Director Talent Management magazine #TMwebinar
  6. 6. Wage and Hour Law: Your Company’s Not Exempt From Litigation Robert Lewis, Ph.D. Industrial Psychologist and Vice President APTMetrics, Inc. Toni Locklear, Ph.D. Industrial Psychologist and Managing Director APTMetrics, Inc. #TMwebinar
  7. 7.   Wage  and  Hour  Law:     Your  Company’s  Not  Exempt     from  Litigation   Presented  by  Robert  E.  Lewis,  Ph.D.     and  Toni  S.  Locklear,  Ph.D.     September  13,  2011  ! 2011 APTMetrics, Inc.
  8. 8. Agenda   •  Introduction  to     wage-­‐hour  law   •  Why  care  about     wage-­‐hour  laws?   •  Difficulties    implementing     wage-­‐hour  laws   •  How  to  limit  risks   associated  with     wage-­‐hour  laws  8 Privileged and Confidential
  9. 9. Introduction  to  Wage-­‐Hour  Law   •  What  is  regulated  by  wage-­‐hour  law?   •  Federal  law:     •  overtime  pay     •  minimum  wage     •  child  labor     •  record-­‐keeping  requirements   •  State  law:     •  meal  and  rest  breaks     •  discharge  notices     •  pay  upon  discharge    9 Privileged and Confidential
  10. 10. Introduction  to  Wage-­‐Hour  Law   •  Key  issue  in  wage-­‐hour  litigation:  Exemption   •  Exempt—not  subject  to  overtime  pay  regulations   •  Non-­‐exempt—subject  to  overtime  pay  regulations  10 Privileged and Confidential
  11. 11. Exemption  Standards   •  Based  on  the  work  as  it  is  done   •  Individual  determination   •  Exemption  types:   •  Executive   •  Administrative   •  Professional   •  Computer  Professional   •  Outside  Sales  11 Privileged and Confidential
  12. 12. Exemption  Standards   •  Key  work  tests:   •  Salary  level  test   •  Duties  test   •  Discretion   •  Independent  judgment   •  Authority   •  Hire/fire  authority   •  Prolonged  course  of  specialized  instruction    12 Privileged and Confidential
  13. 13. Polling  Question   1.  What  percent  of  jobs  in  your  company  are   classified  as  exempt  from  federal  and  state  wage-­‐ hour  laws?   a.  Less  than  20%   b.  20  –  40%   c.  41  –  60%   d.  61  –  80%   e.  81  -­‐  100%   f.  I  don’t  know  13 Privileged and Confidential
  14. 14. Little  Known  Facts   •  Classifying  jobs  as  exempt  is  voluntary   •  No  requirement  to  claim  exemption  for  any  job   •  Employers  bear  the  burden  of  proof  when     claiming  exemption   •  The  Department  of  Labor     estimates  70  percent     of  employers  are  not  in     compliance  with  the     FLSA  in  some  way  14 Privileged and Confidential
  15. 15. Wage-­‐hour  Issues  are  Important   •  Lawsuits  are  on  the  rise     •  Wage  hour  suits  outpace  others  (e.g.,  discrimination)   •  77  percent  rise  in  lawsuits  filed  between  2004     and  2009   •  Multi-­‐million  dollar  settlements—   •  $1.77  billion  in  settlements  in  2007-­‐2010   •  Average  settlement  of  $12.8  million  per  case     •  Damages   •  Back  pay  for  lost  wages,  interest,     liquidated  damages,  and    attorneys’  fees   •  Treble  damages  in  some  states   •  Changing  exemption  status     can  create  litigation  risk  15 Privileged and Confidential
  16. 16. Difficulties  Implementing  Wage-­‐hour  Laws   •  Wage-­‐hour  administration  crosses  organizational   lines   •  The  HR,  finance,  legal  functions  generally  have  some  responsibility   •  Little  coordination  among  them   •  Key  players:    legal  and  HR   •  Work  is  changing   •  Leaner  staffing  levels  require  managers  to  do  more     “non-­‐managerial”  work   •  Laws  require  interpretation   •  What  is  “work  time”?   •  When  is  doing  non-­‐management  work  “essential”  to  doing   management  work?  16 Privileged and Confidential
  17. 17. Polling  Question   2.  Which  jobs  do  you  wrestle  with  most  regarding     wage-­‐hour  issues?   a.  Assistant  managers/team  leaders   b.  Computer  technicians   c.  Accountants   d.  Project  managers   e.  Other    17 Privileged and Confidential
  18. 18. Key  Wage-­‐hour  Concerns   •  Employees  working  off  the  clock   •  Ensuring  that  employees  take  meal  breaks   •  Determining  a  job’s  exemption  status    18 Privileged and Confidential
  19. 19. Reactions  to  Wage-­‐hour  Challenges   •  Delegate  wage-­‐hour  compliance  to  field/ district  management   •  Conduct  compensation/market  analyses   Level of Effectiveness •  Empower  Staffing  to  make  exemption   decisions  at  hire   •  Create  policy  manual  section  on  wage-­‐ hour  compliance   •  Regular  audits  of  wage-­‐hour  policies/ implications   •  Train  managers  on  managing  meal   breaks  and  overtime   •  Conduct  job  analysis  19 Privileged and Confidential
  20. 20. Case  study  –  Guinup  v.  Petr-­‐All  Petroleum   Are  retail  store  managers  entitled  to  overtime  pay?   •  The  Plaintiff’s  Claim  -­‐-­‐  the  company  misclassified  all  of  its  store   managers  as  exempt  from  both  the  FLSA  and  state  wage-­‐hour  law   •  Plaintiff  managed  a  convenience  store/gas  station  in  NY  state   •  Plaintiff  spent:     •  80%  of  her  time  on  nonexempt  duties  such  as  counting   cigarettes  and  verifying  gas  readings   •  20%  of  her  time  on  exempt  duties  such  as  scheduling,   supervising,  and  evaluating  employees   •  Most  of  her  day  free  from  supervision;  the  regional  manager   was  generally  not  in  the  store  20 Privileged and Confidential
  21. 21. Limiting  the  Risk  of  Wage-­‐hour  Issues   •  Knowing  the  work  that  is  done  is  the  number  one  way   to  limit  wage-­‐hour  risk   •  Job  Analysis  is  the  preferred  method  for  documenting   work  requirements     •  Structured   •  Defensible   •  Drives  coordination   •  Documents  critical  job  components   •  Frequency  and  importance  of  work  activities   •  Entry  requirements  for  knowledge,  skills  and  abilities   •  Level  of  discretion  and  autonomy   •  Policy  creation  versus  enforcement  versus  execution  21 Privileged and Confidential
  22. 22. Limiting  the  Risk  of  Wage-­‐hour  Issues   •  Job  analysis  process   •  Determine  jobs  that  present  risk   •  Collect  structured,  verifiable  data   •  Develop  a  comprehensive  work  activity  and  knowledge/skill/ability     list  with  job  experts   •  With  your  employment  attorney,  decide  which  activities  are  exempt   •  Identify  the  ratings  you  need  based  on  your  state  (importance,  time   spent,  level  of  autonomy,  etc.)   •  Administer  the  survey  to  the  entire  population   •  Analyze  the  data,  including  for  exemption  implications   •  Means  and  standard  deviations   •  Illustrate  the  findings  using  visuals  to  facilitate  comparing  jobs     on  relevant  dimensions  22 Privileged and Confidential
  23. 23. Limiting  the  Risk  of  Wage-­‐hour  Issues   Job  Analysis  Results                 •  How  important  are  these  job  activities  for  the  Manager  job?   •  3  –  Critically  important–  this  activity  has  significant  impact  on  profit,  performance,  or  safety   •  2–  Important-­‐-­‐  poor  performance  on  this  activity  hinders  performance   •  1-­‐-­‐  Minor  Importance–  this  activity  must  be  done  but  has  little  impact  on  profit,  performance  or  safety   •  0–  Not  Applicable–  this  activity  is  not  performed  in  this  job  23 Privileged and Confidential
  24. 24. Limiting  the  Risk  of  Wage-­‐hour  Issues   Job  Analysis  Results   •  Including  both  exempt  and  non-­‐exempt  activities  allows  you   to  assess  the  degree  to  which  job  respondents  meet   exemption  criteria    24 Privileged and Confidential
  25. 25. Limiting  the  Risk  of  Wage-­‐hour  Issues   •  Develop  job  descriptions  based  on  the  job  analysis     •  Key  activities  and     responsibilities   •  Key  and  required  KSAs   •  Minimum  and  preferred     qualifications  25 Privileged and Confidential
  26. 26. Job  Profiles  26 Privileged and Confidential
  27. 27. Job  Profiles  27 Privileged and Confidential
  28. 28. Job  Profiles  28 Privileged and Confidential
  29. 29. Limiting  the  Risk  of  Wage-­‐hour  Issues   •  HR  Audit   •  Policies—are  wage-­‐hour  considerations  reflected  in  policies?   •  Use  of  pagers  and  smartphones  for  email  access   •  On-­‐call  duty  for  computer  operators/technicians   •  Use  of  company-­‐owned  vehicles   •  Practices—are  processes  in  effect  for  managing  issues     on  an  ongoing  basis?   •  Grievance  process  for  work  time  complaints   •  Active  training  program  for  managers  to  understand  their   responsibilities   •  Cross-­‐functional  committee  responsible  for  wage-­‐hour     issues  that  meets  regularly   •  Regular  employee  survey  to  determine  how  employees     spend  their  time  in  important  work  activities  29 Privileged and Confidential
  30. 30. Summary   •  Wage-­‐hour  issues  require  cross-­‐functional   management   •  Typically  from  Legal,  HR  and  Finance   •  Knowing  the  job  is  your  best  proactive  and   defensive  measure   •  A  job  analysis  is  a  court-­‐tested  method  of  determining  status   •  Changing  an  employee’s  exemption  status  without  knowing  and   changing  activities/skills  is  a  recipe  for  litigation   •  Audit  your  policies  and  practices  to  ensure   coordination  and  proactive  measurement   •  Policies  to  ensure  guidance   •  Practices  to  ensure  execution  30 Privileged and Confidential
  31. 31. Questions and Answers Robert Lewis, Ph.D. Industrial Psychologist and Vice President APTMetrics, Inc. Toni Locklear, Ph.D. Industrial Psychologist and Managing Director APTMetrics, Inc. #TMwebinar
  32. 32. Join Our Next TM WebinarConnecting L&D With Integrated Talent Management Tuesday, Sept. 20, 2011 •  TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/events Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar

×