|
ACYF
Administration on Children,
Youth and Families
|
U.S. DEPARTMENT
OF HEALTH
AND HUMAN SERVICES
Administration for Children and
Families |
| 1. Log No.
ACYF-PI-HS-01-01 |
2. Issuance Date:
05/03/01 |
| 3.
Originating Office: Head Start Bureau |
| 4. Key Word:
: Labor Standards; Overtime; Minimum Wage |
PROGRAM INSTRUCTION [Select the Attachments
below]
TO: Head Start and Early Head Start Grantees and Delegate
Agencies
SUBJECT: Applicability of the Fair Labor Standards Act
(FLSA) to Head Start and Early Head Start Grantees
INSTRUCTION:
The purpose of this Program Instruction (PI) is to inform Head
Start and Early Head Start grantees that they are covered by the
Fair Labor Standards Act (FLSA). The FLSA establishes minimum wage,
overtime pay, recordkeeping, and child labor standards affecting
full-time and part-time workers in the private sector, and in
Federal, State and local governments.
Although it has been generally understood that grantees which are
public agencies are subject to the FLSA, there has been some lack of
clarity about the applicability of the FLSA to grantees that are
private non-profit or for-profit agencies. After consultation with
the U.S. Department of Labor (U.S. DOL), we have now established
that private non-profit and for-profit agencies operating Head Start
or Early Head Start programs are subject to the requirements of the
FLSA by virtue of being engaged in the operation of a "pre-school."
In addition, we have learned that over the past year, several
private, non-profit Head Start grantees have been found out of
compliance with FLSA standards and have been required to take
corrective action, including payment of back wages to employees.
The FLSA includes the following major requirements that relate to
Head Start and Early Head Start grantees:
- All employees are covered except executive, administrative,
and professional employees who are defined as exempt by the FLSA
and applicable regulations (see the fourth attachment);
- Covered employees are entitled to not less than the current
minimum wage;
- There are specific recordkeeping requirements, especially for
non-exempt employees -- see page 9 of the first attachment, Handy
Reference Guide and Office of Management and Budget (OMB)
Circulars [2
CFR Part 225] and [2
CFR Part 230 ], attachments B, Selected Items of Cost;
- Covered employees must be paid overtime at a rate of not less
than one and one-half times their regular rate of pay after 40
hours of work in a workweek; and
- Training which is not voluntary is considered work time. For
example, if a teacher's continued employment depends on getting an
associate degree, attending college would be considered work time.
(See sections 785.27 and 785.28 of the U.S. Department of Labor
Regulations, Part 785).
This PI cannot answer all of the questions that could be raised
about the FLSA. Please find attached to this PI several publications
of the U.S. DOL that will assist you in meeting the requirements of
the FLSA. I encourage you to contact one of the district offices of
the Wage and Hour Division of the U.S. DOL to get answers to any
question about the FLSA and how it applies to your agency and its
employees. Attached is a nationwide list of district office
locations and telephone numbers. You may also call (toll free)
1-866-487-9243 to obtain the listing of any district office. Also,
you may reach the U.S. DOL on the Internet at http://www.dol.gov/.
In addition, you should be aware that many States also have labor
laws that may affect the management of your agency. The U.S. DOL
cannot assist you with State law; you should contact the appropriate
agency in your State to inquire about relevant State law. State laws
will govern if they are more stringent than Federal law. State Labor
Offices/State Laws website: http://www.dol.gov/federalregister/Search/GetHtml.aspx?DocID=20019
Douglas Klafehn
Acting Associate Commissioner
Head Start
Bureau
