Fair Labor Standards Act Update October 4, 2016

“The most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.”

The changes to the FLSA are a federal mandate. We have evaluated and continue to evaluate approximately 600 positions in light of the new regulations. The University has not received any new funding to address the changes. Departments will need to work within their existing budgets. The Effective Date is December 1. We will implement November 20 to coincide with the beginning of a pay period.

The distribution of the employees with the potential to be impacted: Academic Affairs: 53% President's Office: 15% Campus Ops & Gen Counsel: 3% Finance & Admin: 10% Research: 3% Student Affairs: 15% University Advancement: 2%

Boise State is evaluating positions in under these guidelines to determine if: Position must be converted to overtime eligible Position might be moved above the salary threshold Position may be consider for exemption under “Academic Administrator” exemption which is very narrow.

Built in escalator for wages is tied to the 40th percentile in wages for salaried workers in the south

Where We Are Now Impacted Professional staff employees will not become Classified staff as defined under the state Division of Human Resources rules. Because of the opportunity for overtime/comp time, non-exempt professional staff employees are placed on the same vacation leave plan as classified employees. Employees who are moved to this plan will be credited for state service hours. Sick leave accrual remains the same for both Professional and Classified employees. Employees that become FLSA non-exempt and overtime-eligible will need to report all hours worked through the University time and labor system, and will be compensated through paid time or accrual of comp time at 1-1/2 hours for each hour worked in excess of 40 hours in a work week. Professional employees who move to non-exempt will not change retirement plans.

What is Coming Next Manager/Supervisor Training Week of October 10. Time and Labor Training for Managers and Supervisors Week of October 17. Time and Labor Training for employees weeks of November 1 and 7. Follow up information sessions will also be available those weeks. All impacted employees will receive contract addendums indicated new overtime eligible status through their departments.

Questions?