1. UNDERSTANDING THE FAIR LABOR STANDARDS ACT AND ITS CHANGES JULY 14, 2016 Presenter: Belinda Ogorek

2. OBJECTIVE BACKGROUND REQUIREMENTS RULE CHANGES EXEMPT V. NON-EXEMPT WHAT DOES THIS MEAN FOR YOU

3. BACKGROUND THE FAIR LABOR STANDARDS ACT (FLSA) WAS ENACTED IN 1938. ESTABLISHES STANDARDS AFFECTING EMPLOYEES IN PRIVATE AND PUBLIC SECTOR MINIMUM WAGE OVERTIME PAY RECORDKEEPING YOUTH EMPLOYMENT

4. FLSA DOES NOT REQUIRE VACATION, HOLIDAY, SEVERANCE OR SICK PAY MEALS OR REST PERIODS PREMIUM PAY FOR WEEKEND OR HOLIDAY WORK PAY RAISES IMMEDIATE PAYMENT IF SEPARATED

5. MINIMUM WAGE REQUIREMENT COVERED, NON-EXEMPT EMPLOYEES MUST BE PAID AT LEAST THE MINIMUM WAGE FOR ALL HOURS WORKED EFFECTIVE JULY 24, 2009, THE MINIMUM WAGE WAS ESTABLISHED AT $7.25

6. WHO IS COVERED? MOST EMPLOYEES IN THE UNITED STATES ARE “COVERED” BY THE FLSA EXAMPLES OF EMPLOYEES NOT COVERED PRISONERS ELECTED OFFICIALS POLITICAL APPOINTEES BONA FIDE VOLUNTEERS

7. Current Regulations (2004 until December 1, 2016) Final Rule (Effective December 1, 2016) Salary Level$455 weekly $913 weekly 40th percentile of full-time salaried workers in the lowest-wage Census region (currently the South) HCE Total Annual Compensation Level $100,000 annually$134,004 90th percentile of full-time salaried workers nationally Automatic AdjustingNone Every 3 years, maintaining the standard salary level at the 40th percentile of full-time salaried workers in the lowest-wage Census region, & the HCE total annual compensation level at the 90th percentile of full-time salaried workers nationally. Bonuses No provision to count nondiscretionary bonuses & commissions toward the standard salary level Up to 10% of standard salary level can come from non-discretionary bonuses, incentive payments & commissions, paid at least quarterly. Standard Duties TestTest for exempt duties.No changes.

8. UNDER FLSA, EMPLOYEES ARE CONSIDERED NON-EXEMPT EXEMPT

9. WHAT DETERMINES IF A POSITION IS EXEMPT OR NON-EXEMPT? Currently, employees paid less than $23,660 per year ($455 per week) are non-exempt New rule effective December 1, 2016 for $47,476 per year ($913 per week) Salary Test Permits positions to be considered Exempt by performing high level of work Falls into Executive, Professional or Administrative, Computer Professional or Highly Compensated Categories Job Titles do not determine Exempt Status Duties Test

10. EXECUTIVE DUTIES TEST REGULARLY SUPERVISES TWO OR MORE FULL- TIME EMPLOYEES, AND MANAGEMENT IS THE PRIMARY DUTY OF THE POSITION, AND GENUINE INPUT INTO THE HIRING, FIRING, PROMOTIONS, DISCIPLINE OR ASSIGNMENTS OF OTHER EMPLOYEES.

11. PROFESSIONAL DUTIES TEST MAY BE LEARNED OR CREATIVE PROFESSIONAL LEARNED PROFESSIONAL: REQUIRES ADVANCED KNOWLEDGE IN A FIELD OF SCIENCE OR LEARNING PREDOMINANTLY INTELLECTUAL ACQUIRED BY A PROLONGED COURSE OF SPECIALIZED INSTRUCTION

12. PROFESSIONAL DUTIES TEST CREATIVE PROFESSIONAL: PRIMARY DUTY MUST BE THE PERFORMANCE OF WORK REQUIRING INVENTION, IMAGINATION, ORIGINALITY, OR TALENT PERFORMS WORK IN A RECOGNIZED FIELD OF ARTISTIC OR CREATIVE ENDEAVOR

13. ADMINISTRATIVE DUTIES TEST PRIMARY DUTY MUST BE OFFICE OR NON-MANUAL WORK; AND DIRECTLY RELATED TO MANAGEMENT POLICIES OR GENERAL BUSINESS OPERATIONS; AND CUSTOMARILY AND REGULARLY REQUIRES THE EXERCISE OF DISCRETION AND INDEPENDENT JUDGMENT

14. COMPUTER PROFESSIONAL TEST EMPLOYED AS A COMPUTER SYSTEMS ANALYST, PROGRAMMER OR SOFTWARE ENGINEER OR SIMILAR SKILLED WORKER PRIMARY DUTIES CONSIST OF: APPLICATIONS OF SYSTEMS ANALYSIS TECHNIQUES; DESIGN, DEVELOPMENT, DOCUMENTATION, ANALYSIS, CREATION, TESTING, OR MODIFICATION OF COMPUTER SYSTEMS OR PROGRAMS; DESIGN, DOCUMENTATION, TESTING, CREATION, OR MODIFICATION OF COMPUTER PROGRAMS RELATED TO MACHINE OPERATING SYSTEMS; OR COMBINATION OF THE ABOVE, WHICH REQUIRES SAME SKILL LEVEL.

15. HIGHLY COMPENSATED EMPLOYEE TEST MUST PERFORM NON-MANUAL WORK AND PAID MORE THAN $100,000 PER YEAR AND PERFORM AT LEAST ONE OF THE DUTIES OF AN EXECUTIVE, ADMINISTRATIVE OR PROFESSIONAL EMPLOYEE NOTE: NEW SALARY THRESHOLD OF $134,004 PER YEAR WILL BE EFFECTIVE DECEMBER 1, 2016.

16. NON-EXEMPT EMPLOYEES DO NOT MEET THE SALARY TEST OF $455/WEEK OR THE DUTIES TEST OF EXECUTIVE, PROFESSIONAL, ADMINISTRATIVE, COMPUTER PROFESSIONAL OR HIGHLY COMPENSATED EMPLOYEE NOTE: NEW RULE HAS THE SALARY TEST CHANGING TO $913/WEEK OR $47,476/YEAR.

17. NON-EXEMPT EMPLOYEES (CONT.) MUST RECEIVE 1 1/2 TIMES THEIR REGULAR RATE FOR ALL HOURS WORKED IN EXCESS OF 40 IN A WORK WEEK (UNLESS LAW ENFORCEMENT) HOURS WORKED INCLUDE ONLY THOSE HOURS ACTUALLY WORKED. EXAMPLE: SUE RECORDS 45 HOURS WORKED IN A WORK WEEK BUT 8 OF THOSE HOURS ARE DUE TO A HOLIDAY, SO NO OVERTIME IS PAID.

18. HOW ARE ATHLETIC TRAINERS CURRENTLY CLASSIFIED? JOB TITLE INSUFFICIENT ALONE PRIMARY JOB DUTY TEACHER EXEMPTION WHITE COLLAR EXEMPTIONS REQUIRE PAYMENT OF MINIMUM SALARY ($47,476/YEAR OR $913/WEEK AS OF DECEMBER 1, 2016)

19. ADMINISTRATIVE EXEMPTION ATHLETIC TRAINER HAS RESPONSIBILITY FOR DEVELOPING OVERALL SPORTS MEDICINE PROGRAM, ASSISTING IN DEVELOPMENT OF BUDGET, SCHEDULING STAFF TRAINING, ENSURING COVERAGE AT ATHLETIC EVENTS AND MANAGING INVENTORY (INCLUDING AUTHORITY TO ORDER SUPPLIES AND MATERIALS), MAY QUALIFY AS AN EXEMPT ADMINISTRATIVE EMPLOYEE, PROVIDED THESE TASKS ARE PRIMARY DUTY.

20. EXECUTIVE EXEMPTION ATHLETIC TRAINER PRIMARY DUTY IS MANAGEMENT OF A RECOGNIZED PART OF THE SPORTS MEDICINE PROGRAM, REGULARLY DIRECTS THE WORK OF TWO OR MORE FULL- TIME EMPLOYEES, AND HAS MEANINGFUL INPUT INTO HIRING, FIRING OR OTHER CHANGES OF SUBORDINATE EMPLOYEES.

21. PROFESSIONAL EXEMPTION LEARNED GENERALLY, ATHLETIC TRAINERS WHO HAVE SUCCESSFULLY COMPLETED 4 ACADEMIC YEARS OF PRE-PROFESSIONAL AND PROFESSIONAL STUDY IN A SPECIALIZED CURRICULUM ACCREDITED BY THE COMMISSION ON ACCREDITATION OF ALLIED HEALTH EDUCATION PROGRAMS AND WHO ARE CERTIFIED BY THE BOARD OF CERTIFICATION OF THE NATIONAL ATHLETIC TRAINERS ASSOCIATION BOARD OF CERTIFICATION GENERALLY MEET THE DUTIES REQUIREMENTS FOR THE LEARNED PROFESSIONAL EXEMPTION.

22. IN RESPONSE TO THE NEW FLSA RULE, EMPLOYERS CAN PAY TIME-AND-A- HALF FOR OVERTIME WORK RAISE WORKERS’ SALARIES ABOVE THE NEW THRESHOLD LIMIT WORKERS’ HOURS UP TO 40 PER WEEK EVALUATE AND REALIGN HOURS AND STAFF WORKLOAD SOME COMBINATION OF THE ABOVE

23. VIOLATIONS TO FLSA U.S. DEPARTMENT OF LABOR ENFORCES FLSA BURDEN OF PROOF IS ON THE EMPLOYERS EMPLOYEES CAN SUE THEIR EMPLOYERS FOR THE RECOVERY OF BACK WAGES & LIQUIDATED DAMAGES FOR UP TO 3 YEARS IF VIOLATION IS FOUND TO BE WILLFUL EMPLOYERS CANNOT RETALIATE AGAINST EMPLOYEES FOR “WHISTLE BLOWING”

24. PENALTIES FROM DOL UNPAID WAGES (2 - 3 YEARS OF BACK WAGES) FINES ($10,000) IMPRISONMENT (6 MONTHS) LIQUIDATED DAMAGES (2X) ATTORNEY’S FEES AND COSTS INDIVIDUAL LIABILITY