that employee is entitled to 10 hours of overtime even if the work is in the same pay period. All compensation, including commissions and non-discretionary bonuses, must be included in the regular rate of pay for purposes of calculating overtime, unless the compensation is one of eight specified types of payment (e.g., holiday gift, birthday gift, discretionary bonus, certain profit-sharing payments, etc.). ▶ Failure to keep accurate records. The FLSA imposes record-keeping requirements on employers. There is no prescribed form, but employers must keep detailed records on the hours worked each day by non-exempt employees. In addition, the FLSA requires employers to maintain records showing the total hours worked each workweek, the regular hourly pay rate, total daily or weekly straight-time earnings, overtime earnings for the workweek, wages paid each pay period, all additions or deductions made to or from the employee’s earnings, the date of payment and the pay period covered by the payment, the time and day of the week when the employee’s workweek begins, the basis on which employee’s wages are paid, the employee’s sex and occupation, and certain personal identifying information (full name, Social Security number, full address, etc.). No particular timekeeping method is mandated. Most employers use an electronic timekeeping system. Any system is acceptable as long as it is accurate. What are some common misconceptions about how overtime laws apply to nonexempt employees in Indiana? ▶ Employees can agree not to be paid overtime. No. Overtime pay is required. If an employee works more than 40 hours in a workweek, they must be paid time and a half. Overtime pay cannot be waived or rejected or the amount of the time-and-a-half pay decreased, even by express agreement between the employer and employee. ▶ Double-time must be paid for Sundays and holidays. No. An employer may have a policy/practice of paying a premium for those days, but it is not required unless the overtime threshold has been met for that employee’s regular workweek. If so, then the employee must be paid at 1½ times their regular rate of pay for all hours over 40 that workweek. ▶ Over 8 hours in a workday requires overtime pay. No. This is not required by the FLSA or Indiana law. (As noted below, some states have laws requiring daily overtime, but not Indiana or federal law.) ▶ An employer cannot force an employee to work overtime. Wrong. An employer can require an employee to work overtime. Neither the FLSA nor Indiana law limits the number of hours employers can require employees to work, merely that nonexempt employees be paid overtime for all hours worked over 40 in a workweek. ▶ An employer does not have to pay overtime that was not authorized. No. While an employer can have a policy that prohibits working overtime unless approved in advance by the employer, if an employee works overtime in violation of that policy, the employee must still be paid for the overtime but can be disciplined for not following the employer’s policy. How does an employer avoid these mistakes? Understand the laws and self-audit. A self-audit can spot potential issues and resolve wage and hour issues before they result in a DOL audit or wage claims.5 A self-audit includes examining job descriptions, comparing to actual duties performed and determining if employees are properly classified as exempt or non-exempt, reviewing time records and overtime payments to ensure that all applicable payments are being included in calculating the regular rate of pay and overtime pay, and reviewing time-keeping procedures and whether employees are recording all hours worked or are working “off-the-clock.” The audit should be done in conjunction with experienced wage and hour legal counsel. The information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues. HUMAN RESOURCES CONT. A self-audit can spot potential issues and resolve wage and hour issues before they result in a DOL audit or wage claims. “ 42 HOOSIERBANKER
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