Fair Labor Standards Act

FLSA Changes Effective December 1, 2016 Salary threshold for overtime exemption status increases from $23,660 annually  to $47,476 annually Classified and non-classified positions that are currently exempt from overtime may become non-exempt Non-exempt positions require overtime compensation for hours worked over 40 each week Compensatory time Time-keeping requirements required for non-exempt positions

Exemptions Teaching Residential Assistants Positions where the primary duty is instruction are exempt. Primary duty doesn’t necessarily mean the time spent teaching; just that teaching is a basic duty of the position. Research does not qualify for exempt work. Residential Assistants If an RA is enrolled in a bona fide educational program and they receive reduced room and board or tuition credits, they are not subject to FLSA.

How Does This Change Affect Our Campus? 640 positions may be affected on December 1 73% Non-Classified / 27% Classified 72 positions are within $2,000 of $47,476 Cost to retain exemption for these positions: $97,500 + FB

Post Doctoral Fellows 27 positions may be affected/15 positions are funded by grants Mostly in Engineering and Fulbright College of Arts & Sciences Could cost $210,000 (+FB) to retain exemption status Departments with grant-funded positions should work with Class Comp and RSSP to identify ways to reallocate grant funds to increase salaries (i.e. National Science Foundation)

Recommended Actions for Impacted Employees Approximately 65 staff members are currently recommended for salary level increases to meet the minimum of $47,476 This number could grow as data is reviewed regarding projected overtime hours for individual staff members. Approximately 175 employees cannot have salary levels increased because they are state classified employees. Currently, we project approximately 400 non-classified staff will become non-exempt due the FLSA regulatory changes.

Communication Plan Began visiting departments in February 2016 Talked late last spring with RSSP NEWSWIRE article day after final ruling Road Show: Met with HR and Financial Officers to review individual positions August 2016: Provided HR Reps with survey and time sheets to give to employees to begin gathering data

Options for Responding to Changes Increase salaries to maintain exemption At the unit level / No central funding Not possible with Classified positions Pay current salaries with overtime after 40 hours worked in a week Sunday - Saturday work week Compensatory time earned for hours over 40 Comp time limited to 240 hours Payments for OT will be at the unit level Reorganize workloads, adjust schedules Adjust wages

Deadline to Identify Salary Changes Departments should recommend positions for salary increases by October 28th Include funding source Justification

TIME KEEPING Developing a Time Keeping Policy Training will be offered to supervisors and employees Non-exempt employees will not be allowed to work without recording time Departmental guidelines will need to be established for checking work related email after hours.

Additional Communication Direct communication from HR to supervisors and employees NEWSWIRE updates Website for Q&A Training: Developing training for supervisors and employees Online In person Should be rolled out around September 19th Meetings with Departments and Groups

Recommended Implementation Move Exempt positions to Non-Exempt status effective November 27, 2016 Salary increases to retain exempt status should be effective on or before December 1, 2016

What We Need From You Help us identify which grant-funded positions may need to have grant money reallocation. Help us identify which grant funded positions are not grant-funded in which your area would like to move to the minimum salary level for exempt employees of $47,476. Help us review for equity issues. Communicate suggested changes to us.