EXEMPT EMPLOYEES
What is the difference between an exempt
and nonexempt employee?
The Fair Labor Standards Act (FLSA) categorizes
employees as either exempt or nonexempt based on tests contained within
the Act. The Human Resources Office determines the FLSA status of each
job title by applying the tests.
To be exempt means an employee's job
meets the test criteria for an executive, professional or administrative
exemption and the employee is not covered by FLSA. Therefore, the employee
is usually paid a monthly salary and does not receive extra compensation
for overtime hours worked.
Conversely, to be nonexempt means that an
employee's job does not meet the test criteria, and the employee is
covered by the FLSA. The employee must be paid for overtime hours worked.
The Fair Labor Standards Act allows employers to either pay or give
compensatory time to employees for overtime hours worked, both at a
time and one-half rate.
How does overtime and compensatory time
apply to exempt employees?
Exempt employees do not have
to be paid for overtime hours because they are not covered by FLSA.
While the Act does not say you cannot pay overtime to exempt employees,
some federal courts have examined the issue and ruled that such action
can lead to loss of an employee's exempt status.
NONEXEMPT EMPLOYEES
What is dual employment and are there
any problems with dual employment arrangements?
These arrangements require administrators
to carefully evaluate the overtime implications. Not all dual employment
arrangements cause an employee to be eligible for overtime pay. Rules in FLSA indicate that the hours employees who, at their option,
work occasionally or sporadically on a part-time basis for the same
agency in a capacity different from their regular employment do not
have to be combined with the hours worked in the primary job for the
purposes of determining overtime liability. However, unless the occasional
or sporadic rules apply, all hours worked in a secondary job (Department
B) must be combined with hours worked in the primary job (Department
A) to determine overtime liability. For questions, contact Dindy
Robinson, Manager of Compensation and Training.
How do you define the terms occasional
or sporadic and different capacity?
Under the FLSA, the "occasional
or sporadic" means infrequent, irregular or occurring in scattered
instances. A part-time employee who is given a regular work schedule
(daily, weekly, monthly) does not meet the occasional or sporadic test.
The term "in a capacity different from their regular employment"
can be illustrated with an example. If a full-time clerk in a department
performs part-time clerical duties in another department he or she must
be paid overtime. If that same full-time clerk performs part-time laboratory
duties in another department, there is no overtime liability.
What happens if the part-time job
is not occasional or sporadic of a different capacity?
If the situation does not meet the sporadic
and occasional or different duties tests, the employee must be paid
overtime for all hours worked in excess of 40 in a workweek. During
the dual employment approval process the two hiring departments should
develop an agreement concerning who will pay the overtime rate. In the
absence of such an agreement, the department that works the employee
beyond 40 hours in a workweek will be liable for the overtime pay.
How do you calculate overtime pay in
dual employment arrangements?
If the salary rate for each job is the
same, there is no problem. However, in these dual employment arrangements,
it is not uncommon for an employee to be paid at different rates for
each job. The Department of Labor says that you cannot use the rate
of only the secondary job to calculate overtime, unless all overtime
hours are worked in that secondary job. When an employee in a single
work week works at two or more different jobs for which different rates
have been established, a regular rate of pay has to be established upon
which to calculate overtime pay. When this situation occurs the overtime
rate of pay will be based on the highest paid position in which the
employee was working.
What is the difference between an exempt
employee and a nonexempt employee and how do you determine if a title
is exempt or nonexempt?
A nonexempt employee receives time and
one-half overtime compensation for all hours worked over 40 in a workweek.
A workweek for a nonexempt employee at Collin College starts on Sunday morning
at 12:01 a.m. and ends on Saturday at midnight. An exempt employee is not
compensated for overtime work. Exemption status is determined by actual
job duties and responsibilities performed. Neither job title nor how
a position is paid determines exemption status.
Does compensatory time, whether it
is overtime or straight, have a maximum amount? If so, what happens to
the excess?
Only overtime compensatory time has a maximum,
which is normally limited to 240 hours except for employees who work
in public safety, emergency response, or seasonal activities. These
employees can accrue 480 hours. Any overtime worked beyond those limits
must be paid. At Collin College, we pay all unused comp time balances after the
close of the calendar/tax year.
Health Insurance
Who qualifies for the State's group
insurance premium contribution?
The State of Texas provides a financial
contribution toward the cost of health plans for employees who are budgeted
at 50% or more effort for a period of at least four and one-half months
in a fiscal year in a regular, salaried position. Persons whose affiliation with
Collin College does not satisfy
the State's standard for eligibility for the State premium contribution,
including part-time employees who work less than 20 hours per week should
consider obtaining their own health coverage.
I don't qualify for an employee health
plan. What can I do?
To shop for coverage on-line, you may try
one of the following free services. Collin College does not endorse these search
services nor does Collin College endorse any
individual health plan obtained using one of these services.
http://www.4healthinsurance.com
http://www.ehealthinsurance.com
What is the difference between the
coverage categories of "employee and children" and "employee
and family"?
There are four different coverage categories
for health insurance: "Employee Only" is an election to cover
only the employee. "Employee and Spouse" covers only the employee
and spouse. "Employee and Children" covers the employee and
the employee's children, but NOT the spouse. "Employee and Family"
covers the employee, spouse and children. There is not a cap on the
number of dependent children that can be insured.
Can I add or drop dependents from
my health plan during the year?
If you have an eligible family status change, you
may add, with application in most cases, or drop dependents from your health or dental plan within 30
days of the change. Otherwise, you may not add or drop dependents except
during Annual Enrollment. Employees in Health Select must be approved
through evidence of insurability to add existing dependents even though
there is a family status change.
What is a Change in Status?
A change in status is a situation that
allows you to change your health and dental coverage or spending account
participation such as:
- Adding a dependent through marriage, birth
or adoption;
- Losing a dependent through divorce, death,
or a child reaching age 25 or marrying;
- A dependent gaining or losing employment;
- A dependent's health plan being dissolved;
- Your or a dependent's leave without pay;
- An eligible stepchild moving into your
home.
Retirement
How can I contact TRS (Teacher Retirement
System of Texas)?
Phone - 800-223-8778 or 512-397-6400
Web site - www.trs.state.tx.us
InfoLine - 888-877-0123
Who is eligible for ORP (Optional
Retirement Program)?
Full-time faculty, librarians, and certain
professionals and administrators may elect the Optional Retirement Program
(ORP) in lieu of TRS within 90 days of becoming eligible. The Texas
Higher Education Coordinating Board is responsible for eligibility rules,
which can be found at:
http://www.thecb.state.tx.us/.
I am in ORP. Does the "rule of
80" apply to me?
Yes, it does. The "rule of 80"
is a Teachers Retirement System rule which states that a member qualifies
for an unreduced standard annuity when your age and years of service
equal 80. At this time, the TRS member may apply at the Benefits Office
for the TRS annuity. For example, if you are 54 years old with 26 years
of eligible service, you can retire from Collin College with an unreduced annuity.
This rule also applies to ORP participants.
This means you can enroll in health benefits regardless of age, if age
and years of service equal 80.
There are certain precautions if you
wish to access your ORP account before age 55, despite the rule of 80.
There are no tax penalties if you annuitize your account to begin receiving
regular payments to be paid out over your lifetime.
Otherwise, the IRS says there is a 10%
tax penalty (in addition to ordinary income tax) if you access the account
before retirement age 55.
Always discuss all distribution options
with your ORP company. You may want to annuitize or you may want to
take distributions in another manner. Also, always ask about the rights
of heirs/beneficiaries in your distribution options.
Leave Benefits
Do I have to take vacation when I
am called for jury duty?
No. A deduction
shall not be made from the salary or wages of any employee of Collin
College
who is called for jury duty. Employees should
complete a leave request form specifying leave taken for jury duty and
attach a copy of the jury summons form showing the date served.
What should I do if I receive a summons
to report for jury duty?
You should inform your supervisor as soon
as possible regarding the date and time you will be needed when you
receive a notice to report for jury duty. The summons should be presented
along with the leave request.
What happens if I respond to my summons
and appear in court for the jury selection process, but I find that I
am not selected to be a member of the jury?
You are expected to return to work when
dismissed that day.
How do I apply for the Sick Leave
Pool?
To apply for Sick Leave Pool the employee
should complete and submit the Sick Leave Pool Request Form and required
Certification of Physician or Practitioner Form to Barbara Haroutunian,
Director of Human Resources Information and Services at Courtyard Center.
Whom should I contact if I have questions
concerning sick leave, vacation leave, holidays, emergency leave, jury
duty, or the Family and Medical Leave Act?
Contact the Benefits Office at 972-548-6659.