1. Connecting HR… Serving the Duke Community
HR Forum
Connecting HR… Serving the Duke Community
May 2016

2. Agenda Pending FLSA Change HB2 Implications for Private Employers
Reimbursement Accounts
Travel Registry Update
Dispute Resolution Process
Duke Appreciation
Reminders and Updates

3. HR Forum
Pending Flsa Change

4. HR Forum Discussions Year Month Topic 2015 July
Proposed Regulations to Change Overtime Pay
August
FLSA Salary Threshold Increase
December
FSLA Salary Threshold Increase
2016
March
Fair Labor Standards Act Update
May
Pending FLSA Change

5. Key Provisions
Increase Salary Test Threshold from current $455/week ($23,660 per year) to $ per week ($47,000 per year) which represents an increase of 99%.
Original threshold of $50,440 was derived from the 40th percentile of the average salaried worker’s pay projected in Q1, 2016
Establish a mechanism for automatically updating salary levels going forward (CPI-U or percentile of average worker’s pay)
Considering changes and asking for comments about the job duties test
Estimate that 4.8 million workers will become newly eligible for overtime pay in the first year.

6. Duke Considerations
If the current proposed salary threshold becomes part of the FLSA, approximately 3,500 Duke employees could become non-exempt.
The largest percentage (~80%) would be university employees.

7. Duke Considerations
Planning an approach of full job classification inclusion based on new threshold being within certain salary ranges. (i.e., JF28, Level 11 $39,821 – $51,763 – $63,705)
$42,000
$54,000
Salary Threshold
Min:
$39,821
Max
$63,705
Both employees in the job classification would be considered non-exempt.

8. Duke Considerations
Planning a “grandfathered” status for plan participation in the Faculty/Staff Retirement plan and time-off accrual.
Duke FLSA Working Group is meeting regularly since the rule was proposed to assess University and DUHS impact in order to plan for communication and implementation.

9. Update The new rule is in the OMB now for final assessment.
There are some projections that an announcement from the DOL that outlines the new rule details could occur later this week (May 12 or May 13).
A minimum of 60 days notice prior to implementation is required. Historically, a day notice period has been provided.

10. Update, cont.
We will need HR leadership and support from our entire HR community across the University and DUHS to communicate and implement this change.
Draft documents have been prepared for distribution via Managing at Duke memo and Duke Today article to communicate the acknowledgement and potential Duke impact of the new rule when announced.
More details will follow after we assess how the new threshold impacts the University and DUHS.

11. Hb2 implications for private employers
HR Forum
Hb2 implications for private employers

12. NC GENERAL ASSEMBLY, HOUSE BILL 2 ENACTED AND SIGNED INTO LAW MARCH 23, 2016
Part I:
Local boards of education and public agencies (including UNC system) must require multiple occupancy bathrooms/changing facilities to be designated for and only used by persons based on biological sex No local government (cities, counties) may impose requirements upon employers setting wage/benefits levels of employees (i.e., no employer may require employers to pay a “living wage”) The state’s public policy has been and is to allow persons to hold employment without discrimination on account of race, religion, color, age, biological sex (added), or handicap. However, no person may bring a lawsuit to enforce this public policy (added).
Part II:
Part III:

13. IMPACT ON DUKE AS EMPLOYER:
Part I: Local boards of education and public agencies (including UNC system) must require multiple occupancy bathrooms/changing facilities to be designated for and only used by persons based on biological sex
NO IMPACT:
DOES NOT APPLY TO PRIVATE EMPLOYERS

14. IMPACT ON DUKE AS EMPLOYER:
Part II: No local government (cities, counties) may impose requirements upon employers setting wage/benefits levels of employees (i.e., may not require employers to pay a “living wage”)
NO IMPACT:
DUKE MINIMUM WAGE IS $12/HOUR (FEDERAL MINIMUM WAGE: $7.25 HOUR)

15. IMPACT ON DUKE AS EMPLOYER:
Part III: The state’s public policy is to allow persons to hold employment without discrimination on account of race, religion, color, age, biological sex [added], or handicap. However, no person may bring a lawsuit to enforce this public policy [added]. *
NEGLIGIBLE IMPACT:
FEDERAL AND OTHER STATE CAUSES OF ACTION REMAIN AVAILABLE TO EMPLOYEES
*Governor has proposed repeal of Part III

16. FEDERAL GUIDANCE
EEOC (May 2, 2016): EMPLOYER MAY NOT DENY AN EMPLOYEE EQUAL ACCESS TO A COMMON RESTROOM CORRESPONDING TO THE EMPLOYEE’S GENDER IDENTITY US DEPARTMENT OF JUSTICE (May 4, 2016): HB2 CONSTITUTES SEX DISCRIMINATION AND VIOLATES TITLE VII OF THE CIVIL RIGHTS ACT OF 1964

17. Reimbursement Accounts
HR Forum
Reimbursement Accounts

20. Travel registry update
HR Forum
Travel registry update

34. Dispute resolution process
HR Forum
Dispute resolution process

35. Step 1: Face-to-Face Discussion Step 1: Face-to-Face Discussion
Staff member contacts Staff and Labor Relations within 10 calendar days from the date of the corrective action.
Disputes involving involuntary separation from employment will begin with the Department Head Review of the Dispute Resolution Procedure.
Staff member and Labor Relations representative will convene both the staff member and the supervisor in an attempt to resolve the dispute.
In the event the staff member and the supervisor are unable to resolve the dispute informally, the staff member may request the dispute be referred to the Department Head by notifying Staff & Labor Relations.
Step 2: Department Head
Step 3: Dispute Review Panel
Step 4: Arbitration

36. Step 1: Face-to-Face Discussion
Staff member, supervisor and a Staff and Labor Relations Representative will meet with Department Head to discuss dispute and attempt to resolve the issue.
If still unresolved, Department Head will sign the form and staff member may request internal mediation or advance to the Dispute Review Panel.
Staff member may request the dispute be referred to the Dispute Review Panel by notifying Staff and Labor Relations 15 calendar days from the date the initial appeal is received.
Step 2: Department Head
Step 2: Department Head
Step 3: Dispute Review Panel
Step 4: Arbitration

37. Step 1: Face-to-Face Discussion
Three Duke staff members will serve as an internal Dispute Review Panel. (Panel members chosen by S&LR; cannot be from same dept.)
Copies of any documents that either party wishes to use to support the action taken must be provided to the other party no later than 5 calendar days prior to Dispute Resolution Panel.
The staff member may have a support person present at the Panel Review hearing.
The review must be held within 15 calendar days from the time the application is received by the Office of Human Resources.
The panel shall review all information presented and offer a joint recommendation for action no later than 15 calendar days after the close of the hearing.
Step 2: Department Head
Step 3: Dispute Review Panel
Step 3: Dispute Review Panel
Step 4: Arbitration

38. Step 1: Face-to-Face Discussion
The panel’s written recommendation will be forwarded to the Department Head’s supervisor and Director of Human Resources/Staff and Labor Relations.
The Department Head’s supervisor renders the final decision upon review of recommendation. (All involuntary separations & claims of harassment or discrimination submitted to EVP or DUHS CEO for review and final approval)
If the dispute remains unresolved and the dispute relates to or involves involuntary separation or includes allegations of sexual harassment or any discrimination the staff member may request an arbitration hearing.
Step 2: Department Head
Step 3: Dispute Review Panel
Step 3: Dispute Review Panel
Step 4: Arbitration

39. Step 1: Face-to-Face Discussion
Staff member must submit a letter to Director/Staff and Labor Relations requesting an arbitration hearing within 14 calendar days from the date of issuance of the decision resulting from the review by the Dispute Review Panel.
The staff member may choose to be represented by an attorney. The staff member will be responsible for the selection and cost of an attorney.
The arbitrator shall conduct a hearing to determine the relevant facts and render a written decision within a reasonable time following the hearing.
Step 2: Department Head
Step 3: Dispute Review Panel
Step 4: Arbitration
Step 4: Arbitration

40. Step 1: Face-to-Face Discussion
The arbitrator shall conduct a hearing to determine the relevant facts and render a written decision within a reasonable time following the hearing.
If the arbitrator determines the staff member was terminated in violation of the law or Duke policy, the arbitrator may require reinstatement and/or back pay.
The arbitrator’s decision shall be final and binding between the parties.
Step 2: Department Head
Step 3: Dispute Review Panel
Step 4: Arbitration
Step 4: Arbitration

41. HR Forum
Duke appreciation

42. “Star Wars: The Force Awakens”
Movie Night
“Star Wars: The Force Awakens”

43. Duke Appreciation events and discounts include:
Duke Dines Out at Local Restaurants
May 1 - May 31 - Duke employees receive special offers and discounts at select restaurants.
Lemurs Live Tour
May 1 - May 31 - Duke employees with a valid Duke ID can visit & take the Lemurs Live tour at a $5 (plus tax) rate vs. $10. All tours are by appointment and can be made by calling
Duke Family Nights at the Durham Bulls Athletic Park
May 6, 11, 19, Staff & Faculty save at four Durham Bulls games.
Tickets can be purchased at the Durham Bulls Box Office by showing a valid Duke ID.
May 6: Get a Durham Bulls baseball cap & view the Friday fireworks for $14 + tax pp.
May 11: Enjoy the Durham Bulls Food Truck Fest. Duke tickets are $ tax pp.
May 19: Concessions offers $1 hot dogs, fries & Pepsi products. A Terrace View ticket, including $5 in concessions credit, for $ tax.
May 30: Ticket includes a ‘2’ hour buffet & a Durham Bulls baseball cap for $ tax.

44. Duke Appreciation events and discounts include:
Perkins Library Tours May 11, 11 a.m p.m. & May 17, 1 p.m. - 2 p.m Duke employees can register for a free library tour.
Duke Chapel Service in Page Auditorium May 8, 11 a.m.
The morning worship service will offer prayers of thanksgiving for the role of Duke staff and faculty in the life of the university.
Movie Night - East Campus Lawn May 20, 8 p.m Bring chairs, blankets and movie snacks to the East Campus Lawn for “Star Wars: The Force Awakens.” Popcorn will be provided while supplies last for up to four per family. A valid Duke ID is required. Pets and alcoholic beverages are prohibited.
Save at Theme Parks Selected May Dates
Duke employees can buy discount tickets to Kings Dominion and Carowinds (select May dates).
For more information about Duke Appreciation activities, visit the Human Resources website.

45. HR Forum
Reminders & UPdates

46. Multi-factor Authentication Deadline: July 1, 2016

47. Gender-neutral Bathrooms
Work begins in May
Goal: to designate at least one gender-neutral restroom in every university building with a single-stall facility
Accessing 200 buildings on campus
Duke Health assessing facilities

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