Fair Labor Standards Act Basics and Upcoming Changes 12/6/2018 Fair Labor Standards Act Basics and Upcoming Changes May 2016 Template-WSU Hrz 201.ppt

May 19, 2016. Recording date of this workshop is 12/6/2018 Recording date of this workshop is May 19, 2016. Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation. Template L white fuz

Objectives FLSA Overview Reason for the Change Upcoming Changes & Challenges Who is Impacted & What We Can Do to Prepare Effective Date of Changes Non-Compliance Resources

Fair Labor Standards Act (FLSA) Wage and Hour Division, U.S. Department of Labor (DOL) Governs overtime pay and exemption from overtime pay Different than Administrative Professional (AP) exemption from Civil Service Minimum Wage Federal $7.25 per hour Washington State $9.47 per hour Equal Pay Record Keeping Child Labor Standards

Why the Change? March 2014 Secretary of Labor was directed to make changes to the regulations governing exemptions to FLSA overtime pay requirements July 2015, DOL issued proposed rules changing certain aspects of the exemptions.

Overtime Exemption Criteria Current December 1, 2016 Must be paid on salary basis Must earn $455 per week Must pass “Primary Duties” test* *as defined by DOL Must be paid on salary basis Must earn $913 per week Must pass “Primary Duties” test*

Challenges Current exempt employees governed by this exemption making less than $913 per week, no longer eligible for OT exempt status. Hours worked must be tracked Eligible for overtime pay May be perceived as a demotion

Who is Impacted Those who are currently exempt from overtime earning less than $913 per week as of December 1, 2016. For example: Administrative Professional and Civil Service employees Research Interns Faculty Research Positions Graduate Research Assistants Special FLSA exemptions: Does not apply to Those who predominately perform teaching duties Certain employees in computer-related occupations Employees engaged in outside sales

What Should We Do? July 2015 HRS provided information to Area Personnel Administrators and Senior Leadership re: proposed changes February 2016 HRS hosted webinar Provided Area Personnel Administrators list of those potentially impacted – HR Consultants have worked with 1:1 HRS Attended Dean’s Brown Bag Collaborating with Graduate School on how to address upcoming changes Defining processes to be used once change becomes effective Communicate

When Will the Change Be Effective? “Published” date of final rule May 18, 2016 Effective date December 1, 2016

Penalties for Non-Compliance Willful violations Criminal penalties of up to $11,000 in fines, up to six months imprisonment, or both, and Civil penalties of $1,100 per violation. Employers will be liable to affected employees for Unpaid minimum and/or overtime wages (back wages), Plus an equal amount as liquidated damages, and May also be liable for attorney fees and court costs.

Be watchful of……….. Potential for FLSA status change upon promotion, reallocation or change in job responsibilities. Concerns raised by employees working unusually long hours over extended time period (whether they are compensated or not). Concerns by employees regarding FLSA status. Appropriate level of oversight into employee’s work schedule, work practices, and accumulation of overtime. Employees working side-by-side; one being eligible for and paid overtime, the other is not.

Resources U.S. Department of Labor https://www.dol.gov/whd/flsa/ Department of Labor & Industries www.lni.wa.gov Human Resource Services www.hrs.wsu.edu

WSU Training Videoconference 12/6/2018 This has been a WSU Training Videoconference If you attended this live training session and wish to have your attendance documented in your training history, please notify Human Resource Services within 24 hours of today's date: hrstraining@wsu.edu Template-WSU Hrz 201.ppt

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