Fair Labor Standards Act Changes effective December 1, 2016 Supervisor Information Session

Background The Department of Labor (DOL), the agency which interprets and enforces the Fair Labor Standards Act (FLSA), issued new regulations to revise the criteria defining the type of the employee who is eligible for overtime (non-exempt employee) and the type of employee who is not eligible for overtime (exempt employee). Tarleton is obliged to comply with the FLSA provisions. Exemption from overtime must meet a salary and duties test. The current salary threshold is $23,660. Duties relate to the executive, administrative and professional duties of the position. When a position is at least $23,660 per year and performs duties as outlined in the definitions of executive, administrative, and professional…then the position is exempt from earning overtime. The new regulations increased the salary threshold to $47,476 annually (or $913/week). The duties test did not change. Tarleton State University - Employee Services

Impact to Tarleton Approximately 180 positions will move from being exempt to non-exempt on December 1, 2016. Overtime will be allotted in the form of compensatory time (time earned) in LeaveTraq. Non-exempt employees will move to a biweekly pay cycle with the implementation of Workday. Workday has a time keeping feature replacing TimeTraq and LeaveTraq. Address the perceived loss of prestige, equity and fairness, or loss of workplace flexibility with work arrangement solutions that help sustain service levels but add work/life balance (e.g. alternate work schedules, reorganizing job tasks) Tarleton State University - Employee Services

Exemptions from Salary & Duties test Teachers – Exempts all faculty, teaching GA’s, doctoral fellows and adjuncts from the salary and duties tests as long as primary responsibility is instruction. Adjuncts – Teacher exemption applies unless primary job is non-exempt. Coaches – May be exempt if their primary duty is “instructing athletes in their sport” and not recruiting. Athletic Trainers – May be exempt if they have significant instructional responsibilities. Agricultural Workers – No changes. Tarleton State University - Employee Services

Control of work and Hours: Modify and manage Work Efforts Consider efforts within the department, and per employee, that take up excessive amounts of time. Consider redistribution of work efforts among departmental employees? Consider shifting or ceasing certain work efforts during peak hours and peak months of the year? Look for technology solutions and other resources to make work efforts more time efficient. Evaluate staffing levels. Consider seasonal and/or part-time help. Tarleton State University - Employee Services

Control of work and Hours: understand work habits OF employees Remote Access/Cellphone/Smartphone use- work outside of normal hours is still work. Meetings and training sessions must be included in working hours unless outside work hours AND voluntary AND not directly related to job AND job-related work is not done during attendance. Travel Time poses many complexities on what is work time and what is not. There resources to help understand the differences. Meal time vs. work time- a working lunch or working through lunch is work time. Off-the-clock work—whether voluntary or involuntary—is work. Ensuring that all work is properly compensated requires vigilance by the manager. Tarleton State University - Employee Services

Control of work and Hours: consider flexible schedules Department may choose scheduling options that work best for their workplace. Consider varied arrival and departure times to cover ongoing services (gliding schedules). Consider busy seasonal schedules that may accrue compensatory time to be used during less peak times (variable-week/day schedules). Be clear about schedule requirements and changes well in advance so employees and supervisors can plan. Understand the procedures for accruing, scheduling and using compensatory time. Tarleton State University - Employee Services

Understand and manage perceived loss of "professional" status Understand loss of exempt status may be perceived as a loss of value or flexibility. Expect some employees may feel hurt and under appreciated with change in exempt status. Emphasize the change is to comply with the law and does not reflect on value of a position. Strategize ways to ensure employees are appreciated and not left out of important discussions. Emphasize the “benefits”- time off for the extra work, flexibility of schedule, work load lessened Ensure that “benefits” are made fairly, equitably and within confines of procedure among employees within department. Tarleton State University - Employee Services

FLSa vs State Compensatory time FEDERAL FLSA COMP TIME – When an non-exempt employee works more than 40 hours in a work week. Paid leave or holidays taken during a week are not counted as hours worked when determining federal comp time. Time and one-half is granted for every hour worked over 40. STATE COMP TIME – When the hours worked are not more than 40 in the work week, but the total hours worked and hours of paid leave or paid holidays exceed 40 hours. One hour is granted for each hour of paid time in excess of 40. Commonly referred to as straight time.

Recording and using Your Compensatory Time Compensatory time earned is recorded using the Weekly Report for Compensatory Time Earned form found on the Employee Services and Payroll web pages under Forms. Submit completed form to Employee Services for calculation of compensatory time and entry into LeaveTraq. All time for a work week is accounted for on the Weekly Report form – hours worked, leave hours taken and holiday/closure hours. The Weekly Report for Compensatory Time Earned does NOT need to be completed and submitted if the week’s total hours do not exceed 40. Compensatory time is listed in LeaveTraq as COMP-FLSA and COMP-ST and used in the same manner as other leave types. Tarleton State University - Employee Services

Compensatory Time in LeaveTraq TIPS: State Compensatory Time expires in 12 months. Consider using State Comp time before vacation hours. Monitor leave balances in LeaveTraq regularly.

Weekly Report for Compensatory Time Earned Tarleton State University - Employee Services

Resources FOR MANAGERS AND EMPLOYEES FLSA-Frequently Asked Questions Site http://www.tarleton.edu/hr/compensation/flsa-overtime-rules.html including a large resource section. TAMUS Resource: Key Features of FLSA, State, and Holiday Comp Time The Texas A&M System Training Modules in Single Sign On 2112755 : Comp Time Issues for Employees 2112756 : Comp Time Issues for Supervisors Tarleton State University - Employee Services

FAIR LABOR STANDARDS ACT: OVERTIME RULES Any questions? Tarleton State University - Employee Services

TAKEAWAYS The transition from exempt to non-exempt will be a major shift for many employees. Your assistance is necessary in conveying the message that they remain a valuable part of the university and their contributions are still critical to achieving our mission. The change from exempt to non-exempt is simply to comply with the law; it is not a reflection of the value placed on any position. Keep in mind that employees remaining exempt will see change as well. Take care of all of your employees (exempt and non-exempt) by monitoring impact to their workload. Keep in mind, increased management oversight will be required in permitting and reporting overtime, and using compensatory time without impacting departmental operations. Ensure non-exempt employees report hours worked through proper and timely documentation. Tarleton State University - Employee Services