1. Fair Labor Standards Act: Implementing Changes
Academic Advisors Meeting
November 16, 2016 – 12 pm

2. Agenda What is the Fair Labor Standards Act (FLSA)?
Why are we here?
Exempt vs. Non-Exempt from overtime
New Rules & Key Provisions
What does this mean for FGCU?
Preparing for November 20 Implementation
What Does this Mean to Me?
Questions & Answers

3. Why are we here?

4. What is Changing on November 20?
Ruling issued May 18, 2016
Effective date December 1, 2016
Salary threshold: $913 per week, $47,658.60* annually
Set at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census region, currently the South
Automatic update of the salary threshold every three years
Beginning on January 1, 2020
*assumes 26.1 pay periods

5. FLSA Financial Impacts
Financial Impact of Wage & Hour Non-Compliance
Back pay for 2 years, or 3 years for willful non-compliance
Liquidated damages (back pay x 2) for willful non- compliance
Punitive damages for retaliatory conduct
Legal fess, costs, and interest
Penalties of up to $1,100 per employee

6. Does not meet requirements for exemption from overtime under FLSA
Salary Basis
Paid $913 per week
Job Duties
Primary duties of the position as they relate to the defined criteria for the exemption categories
Job Complexity
Discretion and independent judgment rather than daily, routine decisions with regard to matters of significance
Exemption
Meets additional criteria for Computer, Executive, Professional, or Administrative exemption
Exempt from Overtime
FLSA Exemption Assessment
YES
YES NO
Does not meet requirements for exemption from overtime under FLSA
Non-Exempt
Designation
YES
YES

7. Exemption Classification Process
HR is tasked with determining the exemption status of all staff positions in accordance with statutory provisions and established guidelines.
Faculty positions are exempt from FLSA overtime requirements
The position duties are exempt, not the employee
All staff positions are individually reviewed to determined FLSA overtime exemptions
A variety of actions may change a position’s exemption status:
Law
Position duties
Position FTE/Change in Appointment months
Other relevant factors/DOL Opinion Letters

8. What is NOT Changing on November 20?
Base Rate of Pay
Job Title
Benefits – including leave accrual & ORP

9. What does this mean for FGCU?
Campus-wide impact
Financial impact
Salary equity
Organizational/cultural changes
Changes to internal processes, structures, and systems
Perception of non-exempt positions
Tracking of hours worked
Change management
Communication
Training for employees and supervisors

10. Partnership for Implementation
HR has met with departments to devise the best overall implementation plan for the employees effected.
Balancing Act
Compliance
Best Practice
FGCU Culture
Compliance, Consistency, and Compassion

11. What Does this Mean for Me? What you need to know

12. ALL OVERTIME MUST BE APPROVED BY YOUR SUPERVISOR BEFORE IT IS WORKED
Overtime Pay
Non-exempt positions must be paid for overtime hours at a rate of one and one-half times the hourly rate for all hours worked over 40 hours per week.
Hourly rate is calculated at:
Annual rate / 26.1 pays / 80 hours per pay period
ALL OVERTIME MUST BE APPROVED BY YOUR SUPERVISOR BEFORE IT IS WORKED

13. Leave & Overtime – Exempt to Non-Exempt
Employees w/Grandfathered Status
New Hires
Annual Leave Accrues at hours per pay
Maximum payout annual leave hours
Year End rollover – in excess of 352 annual leave rolls into sick leave balance
Eligible for overtime (NEW)
Annual Leave Accrues at 4.0, 5.0, or 6.0 hours per pay, depending on years of service
Maximum payout – 240 annual leave hours after 6 months of employment
Year End rollover – in excess of 240 annual leave rolls into sick leave balance
Personal day
Eligible for overtime

14. Timekeeping Changes
Non-exempt employees document hours worked per day on the SP Timesheet created by Payroll. The Payroll Office is scheduling timesheet training classes to be held shortly.

15. Lunch breaks No more working through lunch
Non-exempt employees must be afforded a one hour, interruption free lunch. Lunch breaks should be taken away from your desk and scheduled with your supervisor’s approval.

16. Dual Compensation/Secondary Jobs
Non-exempt employees performing a secondary job at FGCU must report all hours worked on their timesheet. Hours worked from a secondary job could result in overtime. Secondary jobs must be approved by your supervisor.

17. After Hours Electronic Access
No more working after hours without pay
Checking work and responding to work related texts after hours is considered compensable hours worked. Non-exempt employees must be paid for accessing and responding to texts, regardless as to whether it is from a supervisor, co-worker, or student.

18. Travel
The Office of the General Counsel is drafting a policy detailing compensable time during work-related travel.

19. Questions