Fredonia Fair Labor Standards Act- (“FLSA”) Compliance Plan October 2016

FLSA-What is it? FLSA is a Federal Law that establishes minimum wage, OT pay, recordkeeping, etc. affecting employees. FLSA designations: Exempt- An employee who earns a salary greater than $47,476 and performs duties recognized by the FLSA as Administrative, Executive or Professional. Exempt employees are not eligible for OT compensation. Non-Exempt- An employee who earns a salary less than $47,476 or performs duties not recognized by the FLSA as Administrative, Executive or Professional. Non-Exempt employees are eligible for OT compensation.

FLSA-What is Changing & When? Effective 12/1/16, FLSA mandates that employees earning less than $47,476 receive OT at a rate of 1.5x their hourly wage rate for all hours worked in excess of 40 per week. OT hours worked between 37.5 and 40 are eligible for “Comp. Time” OT requires pre-approval of immediate supervisor Contact Payroll for hourly wage computation

Fredonia FLSA Compliance Plan ID affected employees Develop strategic and creative plan to ensure compliance by 12/1/16 Secure Cabinet approval for Compliance plan Outreach to UUP Implement plan

Fredonia FLSA Compliance Plan (cont.) Review Compliance Plan with impacted staff and their supervisor(s) at “Open Sessions” Identify essential position duties thru a Job Description (“JD”) JD template: https://fa.fredonia.edu/sites/fa/files/section/humanresources/FLSA%20Template.pdf Employee completes JD and reviews w/ immediate Super. & Dept. Dir. Dept. Dir. signs completed JD & forwards it to HR Completed JD due to HR by 10/14/2016 HR secures impacted employees most recent Performance Program (“PP”) HR provides JD and PP to Consultant for independent review and analysis vs. FLSA strictures

Fredonia FLSA Compliance Plan (Cont.) Consultant analyzes JD and PP against the FLSA “Check List” FLSA Categories: Administrative; Executive; and Professional Consultant provides HR with written determination on each position reviewed by 11/1/2016 Consultants analysis is reviewed by HR and shared with employee, immediate supervisor, Dept. Dir and functional VP

Fredonia FLSA Compliance Plan (cont.) Laura Corey- External Consultant Ms. Corey is Principal of LK Corey & Associates and HR consulting practice located in Jamestown, NY. Laura possesses 25+ years of diversified HR experience in numerous settings providing a broad-spectrum of HR services. Competencies include: Training, Classification, Compliance, Leadership & Organization Development, Strategic Planning and Recruiting. She holds a B.S. from Fredonia

Fredonia FLSA Compliance Plan (cont.) FLSA categories: Administrative- An “…employee performs work directly related to the management policies…or operations of the employer…who regularly exercises discretion and independent judgment…who assists an executive…and performs specialized or technical work…and does not devote more than 20% of their time to work other than described.” “Checklist”- https://fa.fredonia.edu/sites/fa/files/section/humanresources/Checklist.pdf

Fredonia FLSA Compliance Plan (cont.) FLSA categories: Executive- An “…employee who has management as their primary duty; who directs the work of two or more full-time employees; who have the authority to hire and fire or make recommendations regarding decisions affecting the employment status of others; who regularly exercise a high degree of independent judgment in their work; who receive a salary which meets the requirements of the exemption.” “Checklist”- https://fa.fredonia.edu/sites/fa/files/section/humanresources/Checklist.pdf

Fredonia FLSA Compliance Plan (cont.) FLSA categories Professional- “Applicable to employees who perform work requiring advanced knowledge and education, work in an artistic field which is original and creative, work as a teacher, doctor or lawyer who regularly exercise discretion and judgment; who perform work which is intellectual and varied in character…who receive a salary which meets the requirements of the exemption.” “Checklist”- https://fa.fredonia.edu/sites/fa/files/section/humanresources/Checklist.pdf

Fredonia FLSA Compliance Plan (cont.) Questions?