Fair Labor Standards Act: Implementing Changes Academic Advisors Meeting November 16, 2016 – 12 pm

Agenda What is the Fair Labor Standards Act (FLSA)? Why are we here? Exempt vs. Non-Exempt from overtime New Rules & Key Provisions What does this mean for FGCU? Preparing for November 20 Implementation What Does this Mean to Me? Questions & Answers

Why are we here?

What is Changing on November 20? Ruling issued May 18, 2016 Effective date December 1, 2016 Salary threshold: $913 per week, $47,658.60* annually Set at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census region, currently the South Automatic update of the salary threshold every three years Beginning on January 1, 2020 *assumes 26.1 pay periods

FLSA Financial Impacts Financial Impact of Wage & Hour Non-Compliance Back pay for 2 years, or 3 years for willful non-compliance Liquidated damages (back pay x 2) for willful non- compliance Punitive damages for retaliatory conduct Legal fess, costs, and interest Penalties of up to $1,100 per employee

Does not meet requirements for exemption from overtime under FLSA Salary Basis Paid $913 per week Job Duties Primary duties of the position as they relate to the defined criteria for the exemption categories Job Complexity Discretion and independent judgment rather than daily, routine decisions with regard to matters of significance Exemption Meets additional criteria for Computer, Executive, Professional, or Administrative exemption Exempt from Overtime FLSA Exemption Assessment YES YES NO Does not meet requirements for exemption from overtime under FLSA Non-Exempt Designation YES YES

Exemption Classification Process HR is tasked with determining the exemption status of all staff positions in accordance with statutory provisions and established guidelines. Faculty positions are exempt from FLSA overtime requirements The position duties are exempt, not the employee All staff positions are individually reviewed to determined FLSA overtime exemptions A variety of actions may change a position’s exemption status: Law Position duties Position FTE/Change in Appointment months Other relevant factors/DOL Opinion Letters

What is NOT Changing on November 20? Base Rate of Pay Job Title Benefits – including leave accrual & ORP

What does this mean for FGCU? Campus-wide impact Financial impact Salary equity Organizational/cultural changes Changes to internal processes, structures, and systems Perception of non-exempt positions Tracking of hours worked Change management Communication Training for employees and supervisors

Partnership for Implementation HR has met with departments to devise the best overall implementation plan for the employees effected. Balancing Act Compliance Best Practice FGCU Culture Compliance, Consistency, and Compassion

What Does this Mean for Me? What you need to know

ALL OVERTIME MUST BE APPROVED BY YOUR SUPERVISOR BEFORE IT IS WORKED Overtime Pay Non-exempt positions must be paid for overtime hours at a rate of one and one-half times the hourly rate for all hours worked over 40 hours per week. Hourly rate is calculated at: Annual rate / 26.1 pays / 80 hours per pay period ALL OVERTIME MUST BE APPROVED BY YOUR SUPERVISOR BEFORE IT IS WORKED

Leave & Overtime – Exempt to Non-Exempt Employees w/Grandfathered Status New Hires Annual Leave Accrues at 6.77 hours per pay Maximum payout - 352 annual leave hours Year End rollover – in excess of 352 annual leave rolls into sick leave balance Eligible for overtime (NEW) Annual Leave Accrues at 4.0, 5.0, or 6.0 hours per pay, depending on years of service Maximum payout – 240 annual leave hours after 6 months of employment Year End rollover – in excess of 240 annual leave rolls into sick leave balance Personal day Eligible for overtime

Timekeeping Changes Non-exempt employees document hours worked per day on the SP Timesheet created by Payroll. The Payroll Office is scheduling timesheet training classes to be held shortly.

Lunch breaks No more working through lunch Non-exempt employees must be afforded a one hour, interruption free lunch. Lunch breaks should be taken away from your desk and scheduled with your supervisor’s approval.

Dual Compensation/Secondary Jobs Non-exempt employees performing a secondary job at FGCU must report all hours worked on their timesheet. Hours worked from a secondary job could result in overtime. Secondary jobs must be approved by your supervisor.

After Hours Electronic Access No more working after hours without pay Checking work email and responding to work related texts after hours is considered compensable hours worked. Non-exempt employees must be paid for accessing email and responding to texts, regardless as to whether it is from a supervisor, co-worker, or student.

Travel The Office of the General Counsel is drafting a policy detailing compensable time during work-related travel.

Questions