CC Response to DOL Overtime Regulations

What is Changing? Salary Threshold: Current: $455/week (equal to $23,600/year for full time) New: $913/week (equal to $47,476/year for full time) 40th Percentile of full time salaried workers in Lowest Wage Census Region (South) Will be adjusted every 3 years beginning in 2020 Effective December 1, 2016

Topics for Today: Overview of Fair Labor Standards Act (FLSA) “White Collar” Exemptions Overtime, Travel Time – How to Manage? Timeline of Activities

The Basics of Overtime Fair Labor Standards Act – legislation that governs minimum wage and overtime Exemptions – 3 Tests Must be paid a salary (salary basis test) Must receive a minimum specified salary (salary level test) Primary job duties must involve executive, administrative, professional duties (duties test) Non-Exempt - Paid overtime – 1 ½ times rate of pay for over 40 hours in a work week

Salary Basis and Salary Level Tests Must be paid on a salary basis Not subject to reduction based on quality or quantity of work Salary must be at least $913 per week ($47,476 annually for 2080 hours)

The Duties Test The primary job duty must be the kind of work associated with executive, administrative, or professional exemptions Primary = principle, main, major, most important – reason the job exists Job title alone is insufficient to establish exempt status

Executive Exemption Primary duty - managing the enterprise OR a recognized department or subdivision AND Direct work of at least 2 FTE Have authority to hire, fire OR have recommendations given weight

Administrative Exemption Office or non-manual work Primary duty must involve discretion and independent judgement …With respect to “matters of significance” directly related to management or business operations

Academic Administrators Primary duty – administrative functions directly related to academic instruction or training Academic administrative personnel who help run higher education institutions and interact with students outside of the classroom Department heads, academic counselors, intervention specialists Must meet the $913/weekly test or be paid the entry level salary paid to faculty

Learned Professional Exemption Work requiring advanced knowledge/field of science or learning Prolonged course of specialized intellectual study Post docs, fellows

Creative Professional Exemption Work requiring invention, imagination, creativity Talent in a recognized field of artistic or creative endeavor

Computer Exemption Computer systems analyst, programmer, software engineer, etc.

Special Provision for Teachers/Coaches Primary duty must be teaching, tutoring, lecturing Does not require a teaching certificate or a Bachelors degree Includes advisors for drama, speech, debate or journalism programs Exemption also applies to coaches depending on their duties The salary level and salary basis test does not apply

Important to Know CC work week – Sunday thru Saturday OT is only based on hours worked OT is over 40 hours in single work week CC is not able to use comp time Salary threshold is not pro-rated for part-time employees Regardless of FTE, must meet the $913 per week to be exempt Student workers are not considered in an “employment relationship” for purposes of FLSA

Managing Overtime Schedules – how many hours will this job take? Flex time – same work week Split shifts Record all hours worked

Travel Time for Non-Exempt Staff Within one day – all paid time Multiple days – paid time if cuts across regular hours even on days not usually worked Commuting time is not paid time. Working while traveling = hours worked General rule – pay for all travel time unless it’s overnight and outside regular work hours

What is CC Doing? Identifying exempt positions making less than new salary threshold Determine strategies and costs to comply with new regulations (different way of doing our work, salary increase, change in overtime status) Other Considerations – vacation, sick leave Communication with staff who will be affected Education for staff and supervisors