FLSA Training for Managers

“The most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.” -Franklin Rooselvelt-

The challenge before us is an opportunity to consider: Why does our team do everything it does? How do we complete our work today? Are we as efficient as we can be? Do our employees have proper work/life balance? Are our expectations we place on our employees realistic? We want to help you answer those questions and equip you to lead your teams in this new reality.

Overview of FLSA Changes Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers, at $913 per week; which is $47,476 annually Establishing overtime eligibility under the FLSA includes: Assessing their salary is above the threshold, and Analysis of job duties and responsibilities The changes to the FLSA are a federal mandate Insert graph

Boise State is evaluating positions in under these guidelines to determine if: Position must be converted to overtime eligible Position might be moved above the salary threshold Position may be consider for exemption under “Academic Administrator” exemption which is very narrow.

Where Are We Now We have evaluated and continue to evaluate approximately 600 positions in light of the new regulations. The University has not received any new funding to address the changes. Departments will need to work within their existing budgets. Impacted Professional staff employees will not become Classified staff as defined under the state Division of Human Resources rules. The Effective Date is December 1. We will implement November 20 to coincide with the beginning of a pay period.

Impacts to Employees who Become Professional Overtime Eligible

Time Reporting Must report all hours worked through Time and Labor Definition of workweek (Sunday – Saturday) Flexible/Compressed schedules Meal periods Flexible/Compressed Schedules - It is an option for the department to implement flexible/compressed work schedules however, it must be applied uniformly for all professional overtime eligible employees. Example: 4/10 - To manage overtime accrual, the supervisor may alter the employee’s work schedule within one normal work week to the extent that the employee may take an equal amount of time off within the same work week (e.g., employee can take four hours off Friday because he/she worked four extra hours on Tuesday of the same workweek). Meal Periods Be mindful that working lunches are now compensable. (working through lunch)

Overtime Overtime eligible employees are eligible for cash compensation or compensatory time off from duty at the rate of one and one-half hour for overtime worked. Compensatory time off may be provided in lieu of cash compensation as determined by the VP/College level Only actual hours worked in excess of 40 are overtime eligible. Overtime protocol (overtime approvals/requests) Compensatory (Comp) time earned July 1 through December 31 and not used by June 30 or last pay period of the Fiscal Year, will be paid in the first paycheck in July. Comp time earned January 1 through June 30 and not used by December 31 or last pay period of the calendar year, will be paid in the first paycheck in January. Sick, vacation, comp (Example of 35hrs + 8 sick= 43. None of which are overtime eligible.) Employees should receive approval prior to working overtime. Supervisors are responsible for establishing request/approval guidelines for their units. Employees must have prior authorization to work overtime; however, any overtime that is worked must be compensated. Compensatory time not taken at the time of transfer to another agency or upon separation from state service shall be liquidated (paid) at the time of such transfer or separation by payment in cash. The compensatory leave accrual limit is 240 hours. No comp time may accrue beyond the 240 hour maximum; instead it must be paid in cash with the regular payroll cycle. Compensatory time payouts – Employees are encouraged to use their compensatory time as it accrues. Compensatory time can be used before vacation.

Leave Accruals Because of the opportunity for overtime, professional overtime eligible staff employees are placed on the same vacation leave plan as FLSA covered employees No change to sick leave accruals Employees moved to this plan will be credited for state service hours Vacation hours in excess of the maximum accrual will be paid out No determination has been made regarding accrual usage and the holiday break.. * For a full-time employee, working 80 hours per pay period.

FLSA Covered Vacation Leave Hours of Service Years Employed* Hours Accrued Per Pay Period* Rate Accrued per Hour Maximum Accrual 0-10,400 hours Up to 5 years 3.7 hours 0.0462 192 hours (24 days*) 10,401-20,800 5 to 10 years 4.6 hours 0.0577 240 hours (30 days*) 20,801-31,200 10 to 15 years 5.5 hours 0.0692 288 hours (36 days*) 31,201 and above 15 years and above 6.5 hours 0.0808 336 hours (42 days*) Currently, Professional (exempt) staff earn vacation at the rate of 7.4* hours each biweekly pay period with a 240 hour cap. Newly Professional Over-Time Eligible staff will start earning vacation at the rate of 3.7* hours each biweekly pay period with a 192 hour cap, (rate and cap increase with longevity with the state. Credit will be given for service hours already earned at BSU or other agencies.) *Based on a 40 hour work-week

Other Considerations Multiple jobs on campus including adjunct positions Part-time workers Telecommuting All hours worked for the university are included in the calculation of overtime. Part-time workers will receive straight time for hours under 40. - Telecommuting employees will need to record all hours worked. Employees should receive approval prior to working overtime. Supervisors are responsible for establishing request/approval guidelines for their units. Employees must have prior authorization to work overtime; however, any overtime that is worked must be compensated.

Travel related work activities Time spent traveling during the employee’s normal work hours is considered compensable work time Time spent traveling outside the employee’s normal work hours must be evaluated on a case by case basis. Work duties performed while traveling must be compensated

Managing Overtime Communicate to staff need to obtain prior approval for working overtime Communicate expectations for meal periods, checking email from home, working on sick days, mobile device and social media impacts Flexible work schedules to address overtime issues Managing resources/ensuring employees are not penalized for unrealistic expectations

Questions?