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FLSA Compliance - PAO and PAU Staff

Project Background and Description

Switch to Biweekly System in August 2009

Positions classified as PAO and PAU are considered Professional Staff, with incumbents subject to FLSA regulations for recording hours worked and overtime pay. A paper-based timesheet is currently used for recording hours worked, including the determination of overtime.

A review of paper timesheets by Internal Audit found significant FLSA compliance issues for PAO and PAU Staff employees. To address the audit findings and to install a more effective system that tracks hours worked and overtime pay, as required by FLSA regulations, PAO and PAU Staff employees will be switched from the University’s monthly payroll cycle to the bi-weekly cycle, effective August 23, 2009. The bi-weekly payroll cycle and the TIME system are specifically designed to track hours worked and overtime, whereas the monthly payroll cycle focuses on “monthly salary” for positions exempt from FLSA regulations.

Policies, Paid Time Off, and Retirement Plan Remain Unchanged

PAO and PAU Staff employees will remain Professional Staff, with the same personnel policies and PTO and retirement plan benefits provided to other Professional Staff employees.

Audit Findings

A review of timesheets by Internal Audit found significant FLSA compliance issues for PAO and PAU Staff employees. One finding was a 39 percent error rate in timesheets for such inconsistencies as employees not recording all hours worked or recording hours worked that were not actually worked. While individual cases were addressed as an outcome of the audit, the University must install a better system for tracking time worked and calculating overtime pay.