FAIR LABOR STANDARDS ACT (FLSA)

Objectives Define the Fair Labor Standards Act (FLSA) New salary mandate from Department of Labor (DOL) Implementation Overtime/Compensatory Time Guidelines Best Practices

What is the Fair Labor Standards Act? Law addresses: Child labor laws 40 hour work week Minimum wage ($7.25/hr effective 7/24/2009) Overtime pay (and allowed exemptions) Offers Duties tests: Exempt positions – ineligible for overtime Non-Exempt positions – eligible for overtime

Exempt - Current Requirements Effective October 1, 2004 Qualify under Administrative, Executive, Professional, Computer Exception Duties Test Regularly receive a pre-determined salary each pay period Salary Basis Test Must make at least $455 per week ($23,660 per year) Salary Level Test

Exempt - New Requirements Effective December 1, 2016 Qualify under Administrative, Executive, Professional, Computer Exception Duties Test Regularly receive a pre-determined salary each pay period Salary Basis Test Must make at least $913 per week ($47,476 per year) Salary Level Test

What is Non-Exempt? Non-Exempt Must be paid at a rate equal to or greater than minimum wage Must be paid for all physically worked hours Must be paid 1.5 hours for each physically worked hours in excess of 40 in a standard workweek by affording: Compensatory hours Overtime Pay

Implementation University to apply new mandate to Managerial Equivalent Roles: Is the employee’s primary duty managing the university or an official department* or sub-department** of the university? Does the employee customarily and regularly require directing the work of two or more other staff employees or their equivalent? Does the employee have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees relied upon? Does the employee’s primary duty include the exercise of discretion and independent judgment with respect to matters of significance?

Implementation Managerial Equivalent Roles identified Positions will remain Exempt Salary will increase to $47,476, as applicable Exempt positions deemed non-Managerial Equivalent Roles Reclassified to Non-Exempt

Implementation Lawsuit (23 states) filed requesting an injunction to delay mandate until June of 2017 UTEP will move forward with 12/1/2016 deadline, unless further clarification is provided by the Department of Labor.

Overtime/Compensatory Time Guidelines What is Overtime? Physically worked hours in excess of 40 hours in a given workweek Must be paid if non-exempt employee is expected or permitted to work by the supervisor. Some examples include: Returning work related emails, texts, or telephone calls outside of regular work hours Arriving at and beginning work prior to the agreed upon work schedule Remaining at work station during the lunch hour and answering phone calls or covering the reception area

Overtime/Compensatory Time Guidelines Workweek 12:01 a.m. Monday and ends at midnight the following Sunday Non-Exempt Overtime Earned at time and a half (1.5) for all hours worked in excess of 40 hours standard workweek Must obtain prior approval from supervisor to accumulate Time off may be granted in lieu of pay and must be taken within 120 days of being earned Time may be paid if unable to take the time off or if supervisor determines to pay out upon accrual

Best Practices - Employee Work the hours set by your supervisor Obtain prior approval to work in excess of 40 hours in a workweek to include responding to email / text / telephone calls after designated work hours Discuss work schedule adjustments with your supervisor and with sufficient notice to make adjustments to work hours and/or work coverage Accurately record all physically worked hours submit a timesheet on a weekly basis Monitor compensatory time balance Cell phone allowances impacted

Best Practices – Supervisor Assess work load and responsibilities for impacted employees; realign as necessary Establish process for overtime approval requests; ensure prior approval is obtained in writing Establish alternate work schedules, as necessary, to ensure business needs are met and overtime is minimized Closely monitor physically worked hours and adjust work schedules, as deemed necessary Track all physically worked hours via timesheets Establish compensatory time off as initial guideline and allow employees to take the time within 120 day window

Questions? If you have any questions or need additional information, please call x 5202 or email questions to employment@utep.edu

Helpful Resouces UTEP Links: Overtime/Compensatory Guidelines Handbook of Operation Procedures University Pay Plan DOL Links: DOL Fact Sheet  on Updates to Exemptions for Executive, Administrative, and Professional Employees DOL’s Overtime Final Rule and Higher Education DOL’s Guidance for Higher Education Institutions on Paying Overtime under the Fair Labor Standards Act