Purpose Statement

The FLSA Rules feature in First Due enables administrators to automate Fair Labor Standards Act compliance by establishing custom overtime calculation rules that align with your department's work agreements and pay policies. This feature automatically identifies when employees exceed designated hour thresholds within defined FLSA cycles and exports those hours under the appropriate work type classification for accurate payroll processing. By automating FLSA tracking, departments reduce manual calculation errors, ensure consistent application of overtime rules across all qualified personnel, and maintain compliance with federal labor regulations and local collective bargaining agreements.

Background Information

The Fair Labor Standards Act (FLSA) establishes federal requirements for overtime compensation, but fire and EMS departments often operate under specialized work cycle agreements (such as 7(k) exemptions) that differ from standard 40-hour workweeks. First Due's FLSA Rules feature accommodates these unique requirements by allowing administrators to define custom work cycles (ranging from single days to 28-day periods), set specific hour thresholds that trigger overtime, and apply rules selectively based on employee qualifiers like division, shift assignment, or position.

Common Use Cases:

• Implementing 212-hour thresholds for 28-day FLSA cycles under Section 7(k)
• Tracking daily overtime for administrative staff on standard 8-hour schedules
• Managing multiple rule sets for different labor agreements within the same department
• Excluding specific time-off types from overtime calculations per contract requirements
• Generating accurate export data for payroll systems

Prerequisites:

• Active FLSA Rules module in your First Due subscription
• Understanding of your department's FLSA work cycle agreements
• Knowledge of which work types should be used for overtime export classification
• Defined employee qualifiers (divisions, districts, shifts, positions) in your system
• Configured work types and time-off types in Personnel Management

Required Permissions

To create, edit, or delete FLSA Rules, users must have:

1. Access Scheduling 
   
2. Access Setup 
   
   

Video

Step-by-Step Guide

Step 1: Navigate to FLSA Rules Configuration

1. From the main navigation menu, click on Scheduling
2. Select Setup from the Scheduling submenu
3. Click on FLSA Rules in the setup options
   

Step 2: Initiate New Rule Creation

1. Click the Add Rule button to open the FLSA rule configuration form
   

Step 3: Configure Basic Rule Parameters

1. Enter a descriptive Name for the rule (e.g., "28-Day Cycle - Firefighter Overtime" or "Daily OT - Administrative Staff")
2. In the If an employee works over field, enter the hour threshold that triggers overtime calculation (e.g., 212 hours for a 28-day cycle, or 8 hours for a daily cycle)
   

Step 4: Define FLSA Cycle Parameters

1. Set the FLSA Cycle Length by entering the number of days in the cycle (e.g., 28 for a standard fire department cycle, 7 for weekly, or 1 for daily overtime tracking)
2. Select the Start Date for the FLSA cycle to establish when the counting period begins
   

Step 5: Specify Export Classification

1. In the Export as dropdown, select the work type that overtime hours should be classified as for payroll export (e.g., "Overtime," "Double Time," "FLSA Overtime")
2. This classification determines how the hours appear in payroll reports and exports
   

Step 6: Apply Employee Qualifiers

1. In the For all employees with the qualifier of section, select which employee qualifier categories this rule applies to (options may include specific employment types, certification levels, or custom qualifiers defined in your system)
2. This ensures the rule only applies to employees meeting specific criteria
   

Step 7: Define Organizational Filters

1. In the For all employees with section, add specific organizational parameters:
   • Divisions: Select which organizational divisions the rule applies to
   • Districts: Choose applicable geographic or operational districts
   • Shifts: Specify which shift assignments are included
   • Positions: Designate which job positions qualify for this rule
2. You can select multiple values in each category or leave categories empty to apply the rule department-wide
   

Step 8: Configure Work Type Filters

1. In the Filter by work type section, choose whether the rule applies to:
   • All work types (tracks all scheduled and worked hours)
   • Specific work types only (e.g., only "Regular Hours," excluding "Training" or "Administrative Time")
     

Step 9: Set Time Off Inclusion Preferences

1. In the Include time off type section, specify whether certain time-off classifications should count toward the FLSA hour threshold:
   • Select specific time-off types to include (e.g., "Sick Leave," "Vacation," "Holiday Pay")
   • Leave unselected if time-off should not count toward overtime thresholds
2. This setting depends on your department's collective bargaining agreement or policy manual requirements
   

Step 10: Save the FLSA Rule

1. Review all configured parameters for accuracy
2. Click Save to activate the rule
3. The rule will now automatically apply to qualifying employees during the defined FLSA cycles
   

Managing Existing Rules:

• Default a rule: Click the star to default the rule
• Edit a rule: Click the pencil icon next to any existing rule to modify its parameters
  
• Delete a rule: Click the trashcan icon next to any rule to permanently remove it (use caution, as this action cannot be undone)
  

Best Practices

Rule Configuration Best Practices:

• Use clear, descriptive rule names that identify both the cycle type and affected employee group (e.g., "28-Day Suppression Overtime" rather than "OT Rule 1")
• Test new rules with a small group of employees before applying department-wide to verify correct calculation behavior
• Document the business logic behind each rule in a separate reference file for future administrators
• Review FLSA rules quarterly to ensure they remain aligned with current collective bargaining agreements
• Create separate rules for distinctly different employee groups rather than trying to accommodate all scenarios in a single rule

Cycle Configuration Best Practices:

• Align FLSA cycle start dates with your department's established pay period calendar
• For 28-day cycles, confirm the start date matches the official 7(k) cycle date recognized in your labor agreement
• Verify that cycle lengths match payroll processing schedules to ensure accurate export timing
• Consider creating parallel rules with different cycle lengths if your department has multiple labor agreements

Qualifier and Filter Best Practices:

• Be as specific as possible with organizational filters to prevent unintended rule application
• Document which positions or shifts are covered under each labor agreement
• Use qualifier categories consistently across all FLSA rules to prevent overlapping or conflicting calculations
• Regularly audit employee assignments to ensure they remain in the correct divisions, shifts, and positions for proper rule application

Time-Off Inclusion Best Practices:

• Always verify time-off inclusion settings against your collective bargaining agreement language
• Document which time-off types are included in FLSA calculations and why
• Be aware that including time-off types may result in employees reaching overtime thresholds without actually working additional hours
• Consider the impact of long-term leave (e.g., extended sick leave or light duty) on FLSA calculations

Common Mistakes to Avoid:

• Setting hour thresholds without accounting for scheduled shift length (e.g., using 40 hours for personnel working 24-hour shifts)
• Failing to exclude non-overtime-eligible work types like training or administrative assignments when required by policy
• Creating overlapping rules that apply to the same employee groups, resulting in duplicate overtime calculations
• Not coordinating FLSA rule changes with payroll staff before implementation
• Deleting rules without first verifying there are no pending payroll exports that rely on them