Connecting HR… Serving the Duke Community HR Forum Connecting HR… Serving the Duke Community July 2015

Agenda Dependent Eligibility Verification Same-Sex Spousal Equivalency Policy Employee Kickoff Celebration Non-discriminatory Testing Check Yourself Campaign LIVE FOR LIFE Update Sexual Harassment Training Update Online Qualifying Life Events Proposed Regulations to Change Overtime Pay Reminders & Updates

Dependent Eligibility Verification HR FORUM Dependent Eligibility Verification

Dependent Eligibility Verification The audit begins at the end of August and runs through late November. There will be preliminary communications before the announcement postcard from Xerox (our vendor). All employees covering a dependent will be included Proof of eligibility will be listed for each type of dependent

Dependent Eligibility Verification Spouses may submit a copy of pages 1 and 2 of the Federal tax return (with income information redacted). Page 2 must include signatures or an e-file confirmation page that contains the filing number. Same-sex spousal equivalents: may submit a copy of the Duke affidavit and one other proof of joint ownership. Dependent children must have a birth certificate showing a Duke employee as a parent Other documentation will be required for step, adopted, foster children, or children of same-sex spousal equivalents

Dependent Eligibility Verification Confidentiality of Data Working on single sign-on through Duke-at-Work Very secure facility with limited access They want NO original documents (except for people born/married in Wisconsin or Idaho) Documents can be uploaded to secure system

Same-sex spousal equivalency HR FORUM Same-sex spousal equivalency

Same-Sex Spousal Equivalent Policy Revision Major Points All employees hired on or after 1/1/2016 must be legally married to add their spouse to their Duke Health Plan All employees hired prior to 1/1/2016 may enroll either their legal spouse (with pre-tax benefit) or continue to cover their same-sex spousal equivalent with imputed income tax.

Employee kickoff Celebration HR FORUM Employee kickoff Celebration

Non-discriminatory Testing HR FORUM Non-discriminatory Testing

Reimbursement Accounts Non-Discrimination Testing Purpose To determine whether the plans favor highly compensated employees (those earning $115,000 or more in 2014) HCRA and DCRA testing required annually Failure = plans become taxable income for highly compensated employees Passed health care account testing Failed dependent care account testing 1,757 employees enrolled in 2015 DCRA 288 highly compensated employees enrolled in 2015 DCRA

Reimbursement Accounts Non-Discrimination Testing To pass, highly compensated employees’ payroll deductions will be slightly reduced August – December Deductions will continue through end of plan year Reduction will be 8.33% Examples: Letters being mailed July 17th to highly compensated participants No action required by participant Does not impact 2016 enrollment Current Annual Election Revised Annual Election $5,000.00 $4,583.27 $200.00 $ 183.32

Check Yourself campaign HR FORUM Check Yourself campaign

July 20-31

Review and Update Home address & phone number Interoffice address External work address Cell phone number Race/ethnicity County of residence Dependent information Disability status

Find a Golden Ticket and Win! A $200 gift certificate for a performance at the Durham Performing Arts Center. A 50-minute massage at Duke Integrative Medicine A night’s stay and breakfast for two at the Washington Duke Inn & Golf Club An Employee Athletic Pass, including two season tickets for football and four season tickets for women’s basketball

HR FORUM Live for life update

Sexual Harassment training Update HR FORUM Sexual Harassment training Update

Qualifying life events HR FORUM Qualifying life events

Online Enrollments and Qualifying Event Changes Capability of doing online qualifying event changes will be available shortly. Marriage, divorce, birth, death, gain/loss of employment Documentation can be uploaded with change request

Proposed Overtime changes HR FORUM Proposed Overtime changes

Dept. of Labor Proposed Changes Would set a new minimum salary level threshold employees must be paid to qualify as exempt from overtime requirements Proposed threshold at 40th percentile of weekly earnings for full-time salaried workers, (based on 2013 data is $ $47,892 annually) Current regulations set at $23,660 annually has “primary duties” that are consistent with managerial, professional or administrative positions

Dept. of Labor Proposed Changes DOL has proposed automatically escalating this minimum salary on an annual basis by attaching it to the 40th percentile The proposed rule also states that DOL is still considering whether to allow nondiscretionary bonuses, such as certain production or performance bonuses, to satisfy a portion of the standard salary test requirement

HR FORUM Reminders & Updates

DukeALERT Test Wednesday, July 22 at 10 a.m. Survey posted on emergency.duke.edu

Please sign the attendance sheet. Thank You for Attending Please sign the attendance sheet.