Workforce Asset Management Book of Knowledge

CHAPTER SIX

Federal Regulation1

In this chapter, the particulars of federal rules for compensable work are explored to ready the Workforce Asset Management Professional (WAM-Pro) for important compliance responsibilities. Like payroll systems, workforce management (WFM) systems assume the task of enforcing the guidelines for pay computations set forth by the federal government. Errors in timekeeping pay rule configuration or timecard management can flow through to payroll systems and create improper payments and instances of noncompliance. Configuration tips are provided to help the WAM-Pro relate the regulations to the functionality of timekeeping and pay rule system design.

Learning Objectives

By the end of Chapter 6, you should be able to:

• Calculate rate of pay and determine federal overtime requirements.
• Define a legal workweek and workday.
• Understand the difference between exempt and nonexempt employees and be able to label employees properly.
• Describe when employers can make a deduction from pay, and when they cannot.
• Recognize what time should be considered compensable and what time should not (i.e., travel time).
• Identify and know how to configure appropriate meal and rest periods.

6.1 FAIR LABOR STANDARDS ACT

The first step toward achieving and maintaining federal compliance is to understand the law. The WAM-Pro should be a well-versed leader during discussions on how regulations and laws should be met and configured. The following topics are meant to outline the ...