1. HR/Payroll Readiness Project DAY DIVIDE JUNE 2016

2. Day Divide Change Why? The FLSA (Fair Labor Standards Act) requires that an employer have a defined workweek for all employees, a regularly occurring period of 168 hours made of seven consecutive 24 hour periods. To support the move to Workday, campus will move to a standard Monday – Sunday workweek on August 2016. The majority of employees on all three campuses and UW Medicine are already on the Mon – Sun workweek. Workday will have the functionality to define the workweek and comply with the day divide rule by applying a day divide time for each 24 hour period – seven consecutive 24 hour periods. When? June 20, 2016 was identified as the best date to transition.

3. Effects of the Change This change will affect non-exempt employees who work over the day divide on the last day of the defined workweek. There are two primary scenarios: Employees who work a consistent schedule each week will experience very little impact except in the transition week. In the transition week hours worked past midnight on Sunday/Monday are counted in the following workweek. For employees who work a varied schedule, there will be an impact to whichever week hours are attributed for overtime calculation.

4. The day divide impacts the week in which the hours are paid; all hours will be paid. No one will lose any hours worked when the day divide changes. The day divide does not affect premium pay. For example, if an entire shift qualifies for the evening shift differential rate currently, that will still be true after the change to the Monday-Sunday workweek. Recording hours by the day worked and not based on in-punch may impact holiday pay. We will follow the applicable labor contract or civil service rule for which hours qualify for holiday pay. Effects of the Change

5. Example: Employee Working a Set Schedule Example #1: Non exempt employee working a consistent schedule each week. The employee's schedule is 7:00 p.m. to 3.50 a.m. AprilWeek OneWeek TwoWeek Three Employee A456789101112131415161718192021222324 MTWTHFSASUMTWTHFSASUMTWTHFSASU Total Hours - Current 8.00 Total Hours - Midnight Divide35.008.00 3.005.003.005.008.00 3.005.003.005.008.00 3.005.003.00 Hours Paid - Current Hours Paid - Midnight Divide This example illustrates how hours are counted by day and defined workweek with a midnight divide. Week One Regular40.00Regular40.00 Week Two *Shift differentials would still apply. Regular40.00Regular40.00 Week Three Regular40.00Regular40.00 Total Hours Paid120.00 Total Hours Paid120.00

6. Example: Set Schedule with Holiday Example #2: Non exempt employee working a consistent schedule each week. The employee's schedule is 22:30 p.m. to 7:00 a.m. each day. May Week One Week Two Week Three Employee B16171819202122232425262728293031123456 MTWTHFSASUMTWTHFSASUMTWTHFSASUM Total Hours - Current8.00 Total Hours - Midnight Divide1.508.006.50 1.508.00 6.50 1.508.00 6.50 1.508.00 Hours Paid - Current Hours Paid - Midnight Divide This example illustrates how the hours are counted by day and defined workweek. Week One 3rd Shift40.003rd Shift33.50 Regular40.00Regular33.50 *Holiday premium: if a midnight shift placed hours on a holiday; holiday premiums would need to be Week Two paid for the hours worked on the holiday. 3rd Shift40.003rd Shift40.00 Regular40.00Regular40.00 Week Three 3rd Shift40.003rd shift40.00 Regular40.00Regular40.00 Holiday Premium8.00Holiday Premium8.00 Holiday Credit8.00Holiday Credit8.00 Total Hours Paid256.00 Total Hours Paid243.00

7. Things to Remember June 20, 2016 was identified as the best date to transition to the approach approved by DOL for the day divide. Both SEIU and WFSE have been notified. All hours worked will be paid, but the hours from some shifts will be split between two workweeks. Overtime will be calculated based on the old and the new workweek and employees will receive whichever calculation provides the highest level of OT. Hours worked on a holiday for WFSE and SEIU are entitled to pay at time-and-a-half (“holiday premium”).