Chair’s Cabinet November 11, 2016

Agenda I. Welcome, Agenda, and Approval of October 14, 2016 minutes   I. Welcome, Agenda, and Approval of October 14, 2016 minutes II. Updates: Office of the Senior Vice President and Provost Faculty Senate III. Maureen DeArmond, Emma Mallarino-Houghton – Class and Comp/FLSA IV. Hot Topic in LAS V. Preparation for December 6 Workshop (now on Free Speech)

UPDATES SVPP – Faculty Senate-

Other Items The current Board-approved Phased Retirement program “….will expire on June 30, 2017, unless renewed by the Board prior to expiration.” No Plan for renewal (for now) Faculty and staff should note that, if approved, THE PHASING START DATE MUST BE PRIOR TO THE EXPIRATION OF THE PROGRAM, JUNE 30, 2017. 

Faculty Senate Resolution Resolved:  That the Faculty of the Iowa State University Senate stand united for the ideals of diversity and inclusion at our university. We welcome all students to learn to the best of their abilities on our campus in an environment free from racism, sexism, bigotry, harassment, and oppression. We uphold these ideals ourselves, and strongly encourage our colleagues across the university both to uphold these ideals, and to teach them when appropriate to our students as a way to move human society forward. 

Today at Noon

Strategies: P&S Pay & FLSA Changes Chairs Cabinet November 11, 2016 Emma Houghton, Director of Compensation & Classification Maureen De Armond, Associate University Counsel

Modernization Effort for P&S Classification and Compensation CURRENT STATE FUTURE STATE >2 decade old C/C “system” Only 2 structures: P&S and Merit Lack of career paths and development Personalized position descriptions - ~2900 PDs May 18, 2016: FLSA regulation change P&S Exempt and new P&S Nonexempt structures Standardized job descriptions Defined job series and career paths Market driven pay structure for competitiveness, internal/external equity, and performance Serve our mission with an agile pay philosophy, policies, and structure

P&S Classification/Compensation Review In Progress: Evaluation of consulting partners RFP period has closed Initial evaluation of vendors has concluded Vendor interviews and selection targeted for November What is New – FLSA will be addressed in phases as it relates to regulatory changes and the Class/Comp Review Meeting FLSA regulatory deadline of December 1 is being considered Phase 1 of the Class/Comp Review Primary focus is on salary threshold requirements Project teams being assembled to assist in communication and tools development Subsequent phases of the Class/Comp Review will focus on the Class/Comp structure more holistically

FLSA Basics The Fair Labor Standards Act (FLSA) is a federal law originally passed by Congress in 1938; U.S. Department of Labor (DOL) administers FLSA. The FLSA categorizes all workers either as covered (“nonexempt”) or exempted (“exempt”) from the overtime provisions outlined by the Act. DOL presumes employees are subject to overtime (i.e., non-exempt). The burden is on the employer to prove a specific exemption applies! FLSA only updated 7 (now 8) times in 78 years! The FLSA was updated and published on May 18, 2016 and will become effective on December 1, 2016.

Salary Test / Threshold Per regulations published on 5/18/16, the new salary threshold to achieve exemption status has been increased to: $47,476 ($913/week). This is an increase from $23,660 ($455/week) With the 2016 regulatory changes, the salary threshold now will be automatically updated every 3 years Certain professions do not need to meet the salary threshold Doctors, Lawyers, Teachers, and Outside Sales To be exempt from overtime, all other professions must meet both: 1) the duties test and 2) salary threshold

Preliminary Scope of FLSA Impact for ISU Employees earning less than the new threshold of $47,476 will automatically be considered for nonexempt status and be eligible for overtime on December 1 To determine whether exemption remains appropriate, there must be a comprehensive and may require a case-by-case analysis of overtime. Meetings were held with some supervisors/dept chairs to discuss exemption in more detail As part of the Class/Comp review positions will be evaluated further

Anticipated Impacts We reviewed other employee classifications including post-docs, assistant coaches, vet med residents, etc. Potential budget impact for salaries, overtime, benefits and infrastructure costs Assessment of staffing levels Need for time-keeping policies and practices – currently being implemented Hours worked are clearly being defined to address issues like flexibility, travel, break periods, checking emails outside of work, etc. Responsibility to approve overtime sits with the manager/supervisor

Anticipated Impacts Manage changes in exemption status and employee morale Perceptions of nonexempt/exempt status Developed communication, training and guidelines for employees, supervisors, and administrators System setup to administer the new structure

Next Steps Continue to communicate, educate, and partner with campus Further develop tools and resources for campus Regulations: December 1, 2016 Begin to identify and work through “post-December 1” issues Anticipate Class/Comp Review to commence in 2017

Questions and Comments

December Workshop for Chairs

December Workshop for Chairs Retaining our Best Faculty Topics/Format Responding to a competitive Offer