Leave accrual and time reporting
The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid time and a half for time worked over 40 hours in a work week. Among other things, it classifies exempt and non-exempt positions (that is, exempt from the overtime provisions of FLSA) by the types of duties the employee performs and salary threshold.
Employees in exempt positions are paid to do a particular job, not by the number of hours it takes. Employees in non-exempt positions are paid by the hour to do specific duties. As a result, employers account for non-exempt employees’ time in a more systematic fashion. Please consult the appropriate union contract or Personnel Policies for Staff regarding specific application of overtime.
Here are some Questions & Answers regarding leave accrual and time reporting.
- What is the difference between exempt and non-exempt
positions for time-keeping purposes?
Employees in non-exempt positions accrue vacation leave and sick leave depending on percentage of appointment and time worked, and/or duration of appointment. They can earn overtime and may be paid for it or take compensatory time. Time off and time worked are recorded to the nearest quarter hour.
Employees in exempt positions also accrue vacation and sick leave; however, they do not earn overtime or compensatory time. Time off and time worked are recorded in whole-day increments for purposes of pay. A "whole day" may be less than eight hours if an employee’s appointment is less than 100% time.
- What does it mean to record time to the nearest quarter
hour?
Time is reported to the nearest quarter hour refers only for employees in non-exempt positions. When a non-exempt employee takes time off for sick leave and vacation leave (if it is less than a full day), it is recorded to the nearest 15-minute increment.
For example, if an employee returns from a medical appointment at 17 minutes past the hour, you would record 15 minutes. If the employee returns at 24 minutes past the hour, you would record 30 minutes.
- What if employees will not turn in their time sheets when
asked?
It is a supervisor’s responsibility to keep track of time for the staff. Whether or not the employee submits a time sheet, the information should be available from supervisory records and should be reported by the supervisor. You should inform the employee in writing of the time you are recording. The employee’s failure to follow instructions regarding submission of time sheets is a performance issue.
- Can part-time non-exempt employees work overtime and bank
it?
Yes, but overtime is based on time on pay status in excess of 40 hours in a workweek. If a part-time employee works more than his usual hours in a week, but less than 40 hours, it would not constitute overtime. It would simply be additional time to be paid. A part-time employee can, however, earn more vacation and sick leave if she works over the hours of her standard work week.
- Can we save up hourly absences for employees in exempt
positions, and then record whole days off?
No. These employees are not hourly workers; therefore, it is contrary to University policy to track time in this way for pay purposes. It would also constitute a falsification of time sheets to deliberately record whole-day absences that had not occurred.
- How do we record FMLA leave?
For employees in non-exempt positions, Family and Medical Leave Act (FMLA) leave is recorded in the same way as any leave without pay, sick leave, or vacation leave: to the nearest quarter hour. Compensatory time is not counted toward FMLA leave.
For employees in exempt positions, FMLA leave will normally be recorded in whole day increments. The exception is that if the employee takes FMLA leave as a reduced schedule or as intermittent leave, you should record the time hour-for-hour. Please see "Reduced Work Schedule" in the personnel policies for a full explanation.
- Why are there different vacation accrual rates?
Generally, vacation accrual rates are based on the employee’s length of service with the University. There are also some differences depending on the employee’s personnel program. Refer to the policies and contracts for specific accrual rates.
Added considerations
It is not always easy to distinguish between time and performance
issues. For example, one might be tempted to simply dock pay for the
chronically tardy employee in a non-exempt position and think that
the issue is resolved. While it may be correct to do so for pay purposes,
that won’t deal with the morale and productivity problems that
may occur in the unit if the tardiness is allowed to continue.
As another example, requesting a doctor’s slip may seem to be the answer for an employee who calls in sick a lot, but it doesn’t address the fact that she isn’t there to get the work done. It may also be appropriate to give the employee information on FMLA. It’s important to assess each situation thoroughly and make an appropriate diagnosis of the problem.
When questions arise, we encourage you to start with the basics: title of the position, personnel program, duration and percentage of appointment, exempt or non-exempt status, and length of service. Information about FMLA leave is posted on the HR Web site at http://hrweb.berkeley.edu/policy/fmla.htm. Policies and contracts are available at http://hrweb.berkeley.edu/hrpolicy.htm.
The University union contracts and Personnel Policies for Staff Members contain detailed information about leave and time issues and a quick review may suffice. However, if the issue is complex or you simply want to confirm that you’re on the right track, please feel free to call your Employee Relations Specialist in Human Resources.