FLEXTIME AND COMPRESSED WORKWEEKS ALTERNATIVE SCHEDULING OPTIONS TWO NONTRADITIONAL

AWA AGREEMENT FOR A COMPRESSED WORKWEEK FLEXTIME AND JOB
FLEXTIME AND COMPRESSED WORKWEEKS ALTERNATIVE SCHEDULING OPTIONS TWO NONTRADITIONAL
NICHOLLS STATE UNIVERSITY POLICY AND PROCEDURE TITLE FLEXTIME SCHEDULES



FLEXTIME AND COMPRESSED WORKWEEKS ALTERNATIVE SCHEDULING OPTIONS TWO NONTRADITIONAL




Flextime and Compressed Workweeks

Alternative Scheduling Options

Two nontraditional work schedules—flextime and compressed workweeks—can be attractive benefits that meet the changing needs of workers while enhancing recruitment and retention efforts.

Flextime schedules allow employees to adjust their arrival and departure times within specified ranges. Compressed workweeks enable workers to perform full-time jobs in fewer than five days.

Flextime

Flextime refers to a range of scheduling systems that allows employees to adjust their arrival and departure times within specified ranges. Employees must work a standard number of hours within a given time period, such as 40 hours during a five-day workweek. Some flextime plans allow workers to change their schedules frequently—even daily—while others require commitment to a set schedule for a period of weeks or months.

Flexible schedules allow workers to alter their workday to conform with family responsibilities, outside activities, and personal preferences. However, plans typically require that all workers be present at certain times during the workday—so-called core hours—to facilitate communication and ensure full staffing during peak work hours.

Flextime plans should be chosen according to business needs and based on an analysis of employee job duties. Greater flexibility is possible where employees work independently and need not be available to clients and customers.

Flextime plans are not practical for all work sites or jobs. For instance, assembly-line operations require co-workers to be on the same schedule.


Compressed Workweeks

A compressed workweek is any schedule permitting a full-time employee to perform the equivalent of a week's work in fewer than five full days. In exchange for working longer days, employees enjoy larger blocks of time off.

Compressed workweek schedules typically are classified according to the number of days in the workweek and the number of hours in the workday. Some compressed workweek plans feature fixed schedules in which workers always have the same days off—such as a Monday-to-Thursday workweek with every Friday, Saturday, and Sunday free.

Employers should consider a number of factors to determine the feasibility of a compressed workweek arrangement, including production requirements, collective bargaining agreements, federal and state wage-hour laws, and employee interest.


Overtime and Leave Considerations

In establishing flextime and compressed workweek plans, employers must consider the effect that federal and state wage-hour laws have on the plans. Under some alternative work schedules, employees work more hours per day or week than allowed under state or federal wage-hour laws. Covered employees must be paid overtime for those excess hours.

FLSA Requirements

Employees covered by FLSA must be paid time and one-half for hours worked over 40 in a week (29 U.S.C. § 207). Biweekly flextime and compressed workweek arrangements might necessitate overtime payments to nonexempt workers.

Employers cannot average the hours worked over two or more weeks to avoid paying overtime. A nonexempt employee working 30 hours one week and 50 the next is entitled to 10 hours' overtime pay even though an average of 40 hours per week was worked in this period.

However, FLSA defines a workweek as a fixed and recurring period of 168 hours comprising seven consecutive 24-hour periods (29 C.F.R. § 778.105). The workweek does not need to coincide with a calendar week and can begin on any day of the week and at any time of day. By carefully defining a workweek, overtime payments that would be required if a calendar week were used as the workweek can be avoided.

For more information on federal FLSA standards, see chapter Regular Rates and Overtime.

State Overtime and Maximum-Hour Rules

Several states have daily overtime requirements (Arizona is not one of them), setting a maximum number of hours per day employees can work before receiving overtime pay. Covered employees working flextime or compressed workweeks would be ineligible for one and one-half times their regular rate of pay for additional hours worked. However, some states make an exception for compressed workweeks of four, 10-hour days.

In states with daily overtime maximums, employers might prefer flextime schedules that allow workers to adjust their starting and quitting time, but prohibit them from carrying over hours from one day to the next without prior approval.

Accounting for Leaves and Holidays

When implementing alternative schedules, employers should ensure that leaves and holidays are considered a fixed number of hours or are based on the number of hours that employees are expected to work.

In a traditional schedule, all employees have an equal number of holidays and their time off is credited the same. With flextime and compressed schedules, if leave and holidays are considered a fixed number of hours, some employees would lose pay when a holiday falls on one of their longer workdays, while employees who normally do not work on the holiday would receive extra compensation. As a result, some employers require workers to adjust their schedules accordingly.


What factors are involved in creating a flexible work environment?

Today's employer of choice offers competitive salaries, excellent benefits, and added perks such as flexible work arrangements. Flexible work environments provide employees with greater work/life balance, which improves retention. However, before establishing a flexible work arrangement consider the following factors:


Company “fit”

Flexible work environments should compliment overall company objectives. The concept should enhance the company's competitiveness and foster greater productivity and efficiency. Therefore, it's important to determine how offering flexible work arrangements benefit and contribute to the company's mission and the cost associated with the proposed changes.

Culture

Today's workforce is more diverse than in past years. Due to societal factors such as the increase in single-parent households and dual-income families, there are more women in the workplace than ever before.

In addition, as the number of discrimination charges rises, companies are more sensitive to workplace diversity. Therefore, more companies are making efforts to hire people from a wide spectrum of ethnic backgrounds. Companies must consider how the proposed changes will translate to the masses.

Administration

There are several different types of flexible work arrangements. These include job sharing, telecommuting, and flextime. Each company has its own unique and specific business needs and some arrangements work better than others. For example, flextime may work well for bank teller positions because there are higher demands during peak banking hours. Banks can hire the necessary staff to accommodate customer needs during peak times and fully maximize a part-time pool of employees.

In some cases, certain key positions don't allow such flexibility. For example, managers and supervisors may have increased responsibilities to accommodate the new work arrangements. Therefore, companies must determine the impact flexible scheduling will have on overall business operations.

In addition, it must be clear who will oversee and track flexible scheduling and there must be alternate arrangements for unexpected absences. For example, companies may require telecommuters to maintain online timesheets and daily/weekly status reports.

Discrimination/Liability

The key is to design a flexible work environment that meets client demands without adversely impacting some employees. Flexible work arrangements can't discriminate against any protected class of employees (e.g., gender, race, age, etc.). This means flexible work schedules should be made available to all employees in the same position and with the same job duties, without violating the Equal Employment Opportunity Commission (EEOC) guidelines.

For example, if you offer female customer service representatives the opportunity to work four ten-hour days per week instead of five eight-hour days, then you must allow their male counterparts the same opportunity. Flexible work arrangements should never be mandatory; they should always be voluntary initiatives.

What are the disadvantages of flexible working arrangements?


Although flexible work arrangements allow employees a great deal of freedom, and can increase employee loyalty and morale, they also present a number of challenges and potential problems for both employers and employees alike.


It's essential that a company think things through and plan ahead before it implements a flexible working arrangement. In addition, establishing written guidelines before granting anyone a flexible arrangement will help make the arrangement work more smoothly, as well as avoid charges of favoritism.


Here are some steps a company should follow in setting up a flexible work arrangement:


Establish which types of positions will be eligible for flexible work arrangements. Also, specify who within the organization will approve the arrangements. Similar positions should be treated in the same manner. However, since personal responsibility traits are a factor in deciding whether an employee should be eligible, it might not be possible for every employee to have a flexible work situation.


Establish personal guidelines for selecting employees who are a good fit with this type of program. Not all employees are capable of working responsibly on their own with minimal supervision. You should establish a “profile” for employees who meet your conditions for off site work. Make sure the profile cannot be viewed as discriminating against any group of people.


Managers must be ready to change the way they manage their staff. Direct supervision and observation of work output and behavior isn't possible in some arrangements. If a company wishes to implement a flexible working environment, all managers need to “buy in” to the program. Managers must have a high level of trust in their employees and be committed to making flexible work arrangements work.


Keep your telecommuting employees in the loop. Employees who work from home may come to feel isolated and out of the loop when they don't have enough “office” time. Face-to-face interaction often is more revealing and rewarding than over-the-phone or written communications. If you allow flexible work arrangements, special communications efforts and meetings may be necessary to keep all employees feeling like a valuable part of the team. Also, career training and progression of the employees who have flexible arrangements must not be forgotten. Out of sight shouldn't mean out of mind.




Are there any ways to minimize potential problems with flexible working arrangements?

Communication is critical to the success of flexible working arrangements. A written policy is the best way to minimize problems.

The policy should outline:



All employees and managers should receive written details of how the programs work. Holding meetings with managers to review the policy will enable everyone the same opportunity to voice their concerns and ask questions. Even though the policy needs to be in writing and communicated to employees, it must be flexible enough to handle a variety of issues that may arise.

To manage the program effectively, you must be sure that employees' responsibilities are handled when they're not in the office. A backup system needs to be established so that customer service and response times don't suffer as the result of the flexible work arrangements. When scheduling flexible arrangements, a company should take into consideration the need to have full coverage during certain times periods.

It may be appropriate to have employees who work a flextime schedule regularly file reports, or establish a time to review the work process with their manager and co-workers. Periodic department or team meetings — on a face-to-face basis — will help instill a team atmosphere. It generally helps to establish “core hours,” where all employees must be in the office — for example, 10 AM to 3 PM. Communication is imperative for flex time arrangements to succeed.



What complications are likely to occur with flexible working arrangements?

As with most workplace policies, the risk of complications always exists, but you can avoid many of them by keeping close tabs on certain areas.

Supervision

If an employee is allowed flexible scheduling, make sure the arrangement doesn't compromise the supervisor's authority. The new schedule can result in less direct contact between employee and supervisor, which can hinder communication. Head this problem off by involving all parties in the implementation process, making sure everyone understands the guidelines. You may also want to require regular (daily, weekly, etc.) progress reports, either in writing or in person.

Discrimination

The Equal Employment Opportunity Commission (EEOC) has strict guidelines regarding workplace discrimination. These regulations seek to prevent discrimination by employers based on race, sex, religion, national origin, physical disability, and age. Therefore, it's crucial to pay careful attention to how you formulate flexible scheduling arrangements. If you seem to be offering flexibility primarily to a certain category of employee, evaluate your decisions to make sure they're based upon merit, demonstrated need, or another legitimate means of selecting employees.

In a similar vein, be sure to consider the rights of those involved in flexible scheduling arrangements. For example, if an employee is a full-time telecommuter, he or she should have access to the same opportunities as other employees for advancement and salary increases. The bottom line is that you maintain consistency in your treatment of all employees.

Discord Among Co-Workers

Clearly, not all jobs lend themselves to flexible scheduling. Likewise, not all employees are suitable candidates for such arrangements. The result may be resentment on the part of those employees who don't qualify for flexible scheduling.

It may not be possible to change an employee's non-eligible status regarding flexibility, but you may want to think about implementing some other form of scheduling benefit for him or her. For example, you may want to establish a system where employees can earn points and redeem them for time-off, or you may want to allow non-eligible workers an extended lunch break one day a week.

DOL Opinion Letter: Alternative work schedule and workweek under section 7

Topic: Fair Labor Standards Act (FLSA)

Type: Guidance Documents

October 8, 2004
FLSA2004-18NA

Dear Name* ,

This is in response to your letter requesting an opinion concerning the application of the Fair Labor Standards Act (FLSA) to an alternative work schedule proposal the International Brotherhood of Electrical Workers, Local Union No. 77, submitted to Name* a municipality owned electric utility. 

The proposed alternative work schedule during any two week period in which there is not a holiday involves working 9 days and 80 hours during a two-week period with the workweek beginning at 11:00 am on Friday. The Monday through Thursday work schedule is nine hours per day, 0700 ­1630, with a one-half hour uncompensated lunch period. The Friday when pay is issued is an eight hour day, 0700 ­1530, with a one-half hour uncompensated lunch period. This schedule calls for a day off on the other Friday. The workweek ends every Friday at 11:00 a.m.

Below is an example of the proposed non-holiday work schedule:

Workweek One:

   Monday   Tuesday   Wednesday   Thursday    Friday  (payday)

      9        9          9           9          4    (workweek ends at 11:00 a.m. )

   (0700-1100)

Total hours worked:  40

Workweek Two:

   Friday    Monday   Tuesday   Wednesday   Thursday    Friday  (non-payday)

      4         9        9          9           9       day off  

   (1100-1530, with 30 min. lunch)

Total hours worked:  40

For those weeks when there is a holiday, the adjusted work schedule is Monday through Friday, with employees working eight hours per day, 0700 ­ 1530, with a one-half hour uncompensated lunch period.  There appears to be no day off on the non-payday Friday during this holiday work schedule. These hours apply to the week that a holiday falls in and the following week. Below is an example of a holiday workweek and the two (2) following workweeks, when the holiday occurs in a payday week (such as September 1, 2003 in the calendar you provided). 

Workweek One:

   Monday   Tuesday   Wednesday   Thursday    Friday  (payday)

      H        8          8           8          4    (workweek ends at 11:00 a.m. )

   (0700-1100)

Total hours worked:  28

Workweek Two:

   Friday    Monday   Tuesday   Wednesday   Thursday    Friday  (non-payday)

      4         8        8          8           8          4    (workweek ends at 11:00 a.m. )

   (1100-1530, with 30 min. lunch)

Total hours worked:  40

Workweek Three:

   Friday    Monday   Tuesday   Wednesday   Thursday    Friday  (payday)

      4         9        9          9           9          4    (workweek ends at 11:00 a.m. )

   (1100-1530, with 30 min. lunch)

Total hours worked:  44

You ask if the proposed work schedule discussed above complies with the FLSA. 

As you know, the FLSA requires that all covered and nonexempt employees be paid not less than the minimum wage, $5.15 an hour, for all hours worked and overtime pay for all hours worked over 40 in a workweek. An employee's workweek is a fixed and regularly recurring period of 168 hours, comprised of seven consecutive 24-hour periods. It need not coincide with the calendar week but may begin on any day and at any hour of the day.  29 CFR 778.105.  For this reason, it may be possible for an employer to establish a workweek that will accommodate a flexible work schedule such as that described above.  Such a workweek would have to begin at a point somewhere during a workday so that no more than 40 hours are worked in each workweek.

Please note that for purposes of computing pay due under the FLSA, a single workweek may be established for a plant or other establishment as a whole or different workweeks may be established for different employees or groups of employees. Once the beginning time of an employee's workweek is established, it remains fixed regardless of the schedule of hours worked by the employee. The beginning of the workweek may be changed if the change is intended to be permanent and is not designed to evade the overtime requirements of the Act. The proper method of computing overtime pay in a period in which a change in the time of commencement of the workweek is made is discussed in Regulations, 29 CFR Part 778.301 and 778.302.

A review of the calendar attached with your letter shows that in most weeks employees would be working 40 hours. In some instances, however, they would be working 44 hours a week. Under section 7(a) of the FLSA, overtime compensation at time and one-half of the regular rate must be paid to all covered and nonexempt employees for all hours worked in excess of 40 in the workweek. Under certain conditions, public employees may receive compensatory time off pursuant to section 7(o) of the FLSA in lieu of cash overtime compensation as described in Regulations, 29 CFR Part 553.20 -.28. As a condition for use of compensatory time in lieu of overtime payment in cash, section 7(o)(2)(A) of the FLSA requires an agreement or understanding be reached prior to the performance of work. This can be accomplished pursuant to a collective bargaining agreement, a memorandum of understanding or any other agreement between the public agency and a representative of the employees, or between the public agency and individual employees. The agreement or understanding may be oral or written [see 29 CFR Part 553.23(b) and (c)].

The FLSA does not set a minimum or a maximum number of hours in a day or in a week that an adult employee may be required or may choose to work, nor does it regulate work schedules or employers' utilization of their work force, so long as overtime is paid or compensatory time off is given if an employee works more than 40 hours in a workweek. Thus you and the employer may agree to the adjustment of the "9/80" work schedule to 8 hours of work, Monday through Friday, in the week a holiday falls in and also the following week. However, please note that under the proposed alternative work schedule, overtime workweeks occur as a result of reverting to the 8 hour day, 5 days per week work schedule in the week after a holiday that occurs in a payday week.

Please feel free to visit our website at www.dol.gov/esa/whd/ for general Wage and Hour information. If you need further assistance you may contact our local district office below:

U.S. Department of Labor

Wage and Hour Division

1111 Third Avenue, Suite 755

Seattle , WA 98101-3212

Tel. (206) 398-8039

Fax. (206) 398-8050

This opinion is based exclusively on the facts and circumstances described in your request and is given on the basis of your representation, explicit or implied, that you have provided a full and fair description of all the facts and circumstances which would be pertinent to our consideration of the question presented. Existence of any other factual or historical background not contained in your request might require a different conclusion than the one expressed herein. You have represented that this opinion is not sought by a party to pending private litigation concerning the issue addressed herein. You have also represented that this opinion is not sought in connection with an investigation or litigation between a client or firm and the Wage and Hour Division or the Department of Labor.

We trust that the above is responsive to your inquiry.

Sincerely,

Barbara R. Relerford

Fair Labor Standards Team

Office of Enforcement Policy

* Note: The actual name(s) was removed to preserve privacy in accordance with 5 U.S.C. 552 (b)(7).

Sample Policy


Subject: Flextime

Organization: Anonymous

Example of: Standard Policy


Alternate Work Arrangements


The company seeks to establish the place and hours of work that make the best use of our employees' knowledge, skills, abilities, and time. The company offers various alternative work schedules. These alternatives are flextime, compressed workweeks, part-time schedules, job-sharing, and working at home.


Department heads will apply these policies in a consistent manner.


Flextime


Under flextime, an employee may start and end work within a specific time frame. The use of flextime is at the discretion of the department head. The flextime hours may be changed by the supervisor or the department head if the flextime schedule interferes with the conduct of business.


The following guidelines apply:


  1. The employee is to start and stop work at the same time each day. Flextime schedules are to identify specific starting and stopping times on the hour or half-hour each day. An exception may be made for flextime schedules, just as with a regular schedule.


  1. There are to be sufficient numbers of employees to meet the operating requirements of the company at all times.


  1. In a flextime schedule, the employee is expected to work 5 days a week, 8 hours a day, and 40 hours a week.


  1. The employee is expected to meet or exceed all performance standards.


Compressed Workweek


In a compressed workweek, the work schedule is condensed into fewer than five days. Overtime is not paid after 8 hours on any day in any week if a compressed workweek schedule is being used.


The following guidelines are to be used for this policy.


  1. Generally, if an employee has elected to use a compressed workweek of four days, the employee will work four days even if there is a single holiday during that workweek. In other words, work will not be rescheduled in a compressed workweek for a holiday. The employee will not receive holiday pay unless there are two or more holidays in a week, unless the company has required the employee to work a compressed workweek.


  1. The compressed workweek will consist of a 40-hour workweek.


  1. All benefits based on hours worked will continue to be calculated on a 40-hour workweek (i.e., vacation, hours worked to qualify for 401(k) participation, sick time, and the like).


  1. Employees on a compressed workweek may be required to work overtime. This may include coming in on a scheduled day off. Overtime pay will be paid for any hours worked over 40 in one workweek.


  1. Adequate employee coverage is to be maintained at all times and is to meet the operating requirements of the company.


  1. The employee is expected to meet or exceed all performance standards.


Job-Sharing


Under job-sharing, two individuals share the responsibilities of one full-time position. The two employees will have a combined total of 40 hours per week.


The following guidelines should be used for job-sharing.


  1. Job-sharing may take the form of working different portions of the day, alternating days, alternating weeks, or some other combination that meets the needs of the company. Adequate employee coverage is to be maintained at all times and is to meet the operating requirements of the company.


  1. Employees who share jobs may be required to work additional hours, including overtime hours as required by the needs of the company.


  1. Job-sharing employees are paid on an hourly basis.


  1. Benefits will be paid based on the number of hours worked. Generally, employees who work fewer than 20 hours a week are considered part-time and have no benefits.


  1. The employees are expected to meet or exceed all performance standards.


Work-at-Home Arrangements


For selected positions for which work can be performed away from the office, the company may approve a "work-at-home" program. Often this alternative will be used for employees who are unable to work a full schedule and have qualified for a partial leave of absence. For some positions, the arrangement to work out of the office may be granted on a regular basis rather than for a specific amount of time (e.g., a partial leave of absence).


The following guidelines apply:


  1. The employee who works at home is expected to comply with all company policies.


  1. The employee is expected to meet or exceed all performance standards.


  1. The employee is subject to discipline based on performance or violation of company policy.


  1. Work-at-home arrangements must be approved by the supervisor, department head, and the vice president of human resources.


  1. Employees working at home shall comply with all applicable laws, including zoning laws and reporting of work-related injuries.


  1. An employee working at home may be required to report elsewhere to perform services for the company.


  1. Employees may be required to work overtime.


Part-Time Work


Part-time work is continued regular scheduling for less than 20 hours per week. There are no benefits for a part-time employee.


An individual who is an hourly employee who works between 20 to 40 hours per week will be paid on an hourly basis and will accrue benefits on a pro rata basis. For example, if the employee works 30 hours in a workweek, that individual earns three-quarters of the applicable benefits.


For salaried employees exempt from overtime, pay will be adjusted as permitted by the Family and Medical Leave Act when they are working reduced hours.


Regular part-time employees (as opposed to those on a temporary part-time work schedule) will have reviews of employment and eligibility for raises like all other employees.


Alternative or Additional Provisions


Questions. Any employee with questions concerning flextime should contact the vice president of human resources.


Coordination with other policies. The flextime policy will be coordinated with our leave policy, reasonable accommodation policy, layoff policy, part-time policy, overtime policy, and job-sharing policy.


To reduce commuting time, an employee may arrive at work before or after the normal rush hour in the morning. Similarly, to accommodate employees who need to leave earlier to pick up a dependent child or adult from daycare, employees may leave as early as 3:30 p.m.


Generally, all employees are expected to be at work from 9 a.m. to 4 p.m. Individual supervisors will approve starting times for 8-hour workdays. For example, some individuals in your department may begin work at 8 a.m. and leave at 4 p.m., others may start at 8:30 a.m. and leave at 4:30 p.m., and still others may arrive at 9 a.m. and leave at 5 p.m.


A flextime schedule may be created to accommodate a person with a disability as long as the flextime schedule does not create an undue burden for the company. A flextime schedule may also be created to provide intermittent leave for an employee eligible for family or medical leave under federal law. An employee seeking flextime hours may be transferred to another position, with no loss in pay, to better accommodate the need for flexible hours.


Only full-time, regular employees actively at work are eligible for this benefit.


August 06, 2007 – Bureau of Labor Relations


To Keep Older Workers, Communicate and Be Flexible

A recent survey of more than 28,000 employers in 25 countries found that four out of five have no retention strategies to keep older workers with their companies. And, of course, should most or all of them leave, you will not only encounter job vacancies but also a significant loss of institutional knowledge. So how to keep them? Here are some ideas.

One strategy is to seek them out to inquire about their plans earlier than most employers currently have such conversations. Once an employee has (1) consulted with a financial adviser about the size of retirement savings accounts, (2) been satisfied with the figures, and (3) discussed plans to retire with friends and family, a discussion with the employer is too late. Although some busy executives may be too burned out to stay at all, others could be persuaded to stay for long enough to advise a successor or serve as a consultant or mentor to more-junior employees.

A key initial step in planning a retention program is to identify among employees who are soon to be eligible to retire the skills, experience, and even specific individuals the organization wants to retain. Look especially for hard-to-replace knowledge and for employees who have close relationships with key customers or are publicly identified with the organization's brand. Having selected the target workers, one expert recommends conducting personality and interest assessments of them. That will help the organization, says Sharon Birkman-Fink, president and CEO of Birkman International, to identify and design the kinds of modified or new positions that may entice those employees to stay on for several more years. They may want to learn something new and/or work fewer or more flexible hours. And, although the implementing IRS regulations for the Pension Protection Act are still somewhat uncertain, observers believe the law will ease implementation of so-called phased retirement programs. According to a recent report from The Conference Board, here are features that may appeal to employees approaching retirement age:

Tip: You may not need to worry as much about losing the women in your workforce as about the men. The Employee Benefit Research Institute reports that the increasing rate of participation of employees ages 55 to 64 is driven almost entirely by the greater number of working women of those ages.



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PLEASE NOTE: By providing you with research information that may be contained in this message, Arizona Employers’ Council (AEC) is not providing a qualified legal opinion concerning any particular human resource issue. As such, research information that AEC provides to its Members should not be relied upon or considered a substitute for legal advice. The information that we provide is for general employer use and not necessarily for individual application.  We also recommend that you consult your legal counsel regarding workplace matters when and if appropriate.





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