1. FLORIDA STATE UNIVERSITY Office of Human Resources HR Forum FLSA Overtime Changes August 18, 2016

2. FLORIDA STATE UNIVERSITY Office of Human Resources Agenda HR Updates FLSA Changes Up Next One-on-One Questions

3. FLORIDA STATE UNIVERSITY Office of Human Resources HR Updates FSU Postal Services Employee Mail Codes –Update for your department employees –Correct mail codes –Only 1 mail location per employee

4. FLORIDA STATE UNIVERSITY Office of Human Resources HR Updates Employee & Labor Relations A&P evaluations are due 9/2/2016. Please remind your supervisors and managers of the deadline. It is critical that A&P evaluations are completed by the 9/2/2016 deadline because the employee’s rating will impact their eligibility for merit pool awards.

5. FLORIDA STATE UNIVERSITY Office of Human Resources FLSA Overtime Changes Sarah Mirkin, Special Projects Manager

6. FLORIDA STATE UNIVERSITY Office of Human Resources The Fair Labor Standards Act (FLSA) Federal Law Sets rules for classifying covered employees as “exempt” or “nonexempt” Requires overtime compensation to nonexempt employees for all hours over 40 in a workweek  Usually 1.5 times regular pay rate

7. FLORIDA STATE UNIVERSITY Office of Human Resources FLSA Exempt Criteria White collar exemptions = most common  Duties Test  executive, administrative, or professional AND  Salary Test  Minimum weekly salary  Paid on salary basis Non-salary based exemptions –Job duties only, no salary minimum  Practice of Law & Medicine  Teachers "primary duty is teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge."

8. FLORIDA STATE UNIVERSITY Office of Human Resources 2016 Overtime Changes 1.Raised minimum salary required for employee to be classified as exempt from overtime  Salary minimum more than doubled  From $455 weekly ($23,751 annual at FSU)  To $913 weekly ($47,658.60 annual at FSU)  NOT pro-rated for part-time 2.Automatic updating of minimum salary  Every 3 years (starting 2020)

9. FLORIDA STATE UNIVERSITY Office of Human Resources 2016 Overtime Changes – DOL Video

10. FLORIDA STATE UNIVERSITY Office of Human Resources Why? Federal regulatory change mandated by law March 2014: President Obama directs Department of Labor (DOL) to update standards for exempt classification  Aimed at expanding number of overtime eligible employees May 2016: Final rule updating overtime regulations published by DOL

11. FLORIDA STATE UNIVERSITY Office of Human Resources What Will the Changes Mean? More nonexempt (overtime eligible) employees at FSU Department managers will have to  manage overtime  monitor time worked more closely *rules for managing overtime have not changed

12. FLORIDA STATE UNIVERSITY Office of Human Resources When? Final rule released: May 18, 2016 Federal compliance date: December 1, 2016 FSU effective date: November 18, 2016

13. FLORIDA STATE UNIVERSITY Office of Human Resources FLSA at FSU Currently FLSA Nonexempt (overtime eligible)  Most USPS, OPS  Track hours worked, ins/outs  Overtime for work over 40 hours per week FLSA Exempt (overtime ineligible)  A&P, Faculty, OPS Exempt, USPS Exempt  Salaried, default schedule, only leave time tracked  No overtime pay

14. FLORIDA STATE UNIVERSITY Office of Human Resources Proposed Changes Won’t Impact Teaching Faculty  All tenure track faculty  Instructional and teaching specialized faculty Graduate Assistants Resident Assistants Nonexempt employees Employees practicing law or medicine

15. FLORIDA STATE UNIVERSITY Office of Human Resources Proposed Changes Will Impact A&P Exempt USPS Exempt OPS Exempt, including Postdocs All Exempt part-time employees Non-teaching faculty  Researchers  Librarians  Administrators

16. FLORIDA STATE UNIVERSITY Office of Human Resources Global Impact at FSU 1,220 exempt employees under minimum salary  1,062 Staff (955 A&P; 101 USPS; 6 OPS)  47 Faculty (non-teaching, includes OPS)  111 OPS Postdocs

17. FLORIDA STATE UNIVERSITY Office of Human Resources Anticipated University Approach Multi-faceted Different recommendations by job code  based on employee type, duties performed, overtime risk, & budgetary constraints Consistent Treatment Recommendations set centrally  By job codes  By part-time status Across all divisions

18. FLORIDA STATE UNIVERSITY Office of Human Resources Recommendations – Reclassify Some Job Codes will be Reclassified to Nonexempt Most USPS Exempt Most OPS Exempt − Including OPS Non-Teaching Faculty Some A&P Exempt − Selected based on job duties & salary considerations Also all Part-Time employees in Exempt Job Codes  salary minimum

19. FLORIDA STATE UNIVERSITY Office of Human Resources Reclassified Employees Become nonexempt (overtime eligible)  Only change is overtime eligibility & time keeping Stay in their pay plan (A&P, USPS, Faculty, OPS)  A&P Nonexempt, new hybrid classification No changes to: job duties, regular rate of pay, retirement options, leave accrual rate  Not a demotion  Some will earn over salary minimum Department must manage overtime!

20. FLORIDA STATE UNIVERSITY Office of Human Resources Recommendations – Raise Salary & Remain Exempt Some Job Codes will Stay Exempt Any employees in these codes making less than the new FLSA minimum will get a raise to meet the new salary minimum. All Salaried Non-Teaching Faculty All OPS Postdocs Some USPS Exempt Some A&P Exempt − Selected based on job duties & salary consideration

21. FLORIDA STATE UNIVERSITY Office of Human Resources Funding None provided by fed/state E&G Costs  Central funding support Non-E&G Costs  Funded at Department level Postdocs  Bridge Funding Overtime Expenses  Department budget

22. FLORIDA STATE UNIVERSITY Office of Human Resources Impacted Job Codes—University-wide Refer to handout

23. FLORIDA STATE UNIVERSITY Office of Human Resources Timesheets for Reclassified Employees Goal = minimizing impact on employees & maintain accurate record of time worked Fall 2016 Implementation  A&P nonexempt, OPS Non-teaching Faculty, Part-time nonexempt Postdocs  Very minimal changes  Default schedule, report variances  New USPS & OPS nonexempt  punch time (ins/outs) 2017 continuing to review timekeeping  Expect some changes  Will work to minimize impact

24. FLORIDA STATE UNIVERSITY Office of Human Resources Nonexempt Time Management Overtime for working  40 hours total in a workweek  FSU workweek: midnight Friday through Thursday  Nights/Weekends not automatically overtime Dual Appointments  If both appointments are nonexempt overtime is calculated by taking the total number of hours worked between both FSU jobs.

25. FLORIDA STATE UNIVERSITY Office of Human Resources “Suffered to Work” Employee can’t voluntarily opt-out of getting overtime compensation Pre-approval of overtime  Train managers & nonexempt employees that pre-approval of overtime is required  However:  Must always compensate employee who worked  40 hours  Can discipline repeat offender who works overtime without approval after receiving a warning Managers have burden to ensure employees are working as directed & reporting time properly

26. FLORIDA STATE UNIVERSITY Office of Human Resources Strategies to Manage Overtime Clarify expectations  Manager pre-approval of overtime  Night/weekend response  Event attendance Rebalance assignments Flex Time  can use to avoid accruing overtime (within workweek) Overtime Compensatory Leave  can be used to reduce overtime costs

27. FLORIDA STATE UNIVERSITY Office of Human Resources Overtime Compensatory Leave Can offer instead of overtime pay  1.5 hours per overtime hour worked  Not available for OPS  Can’t force employee to accept  Can preferentially assign overtime hours to someone willing to accept leave  Should require use before annual leave hours  Cap on total hours permitted  Pays out eventually if not used

28. FLORIDA STATE UNIVERSITY Office of Human Resources Nonexempt Travel Time spent traveling = time worked  Everyday commuting time to/from work ≠ time worked Time spent working = time worked  Regardless of location  Includes after hours work from home (emails/texts/calls) “Downtime” while away from home ≠ time worked  Meals ≠ time worked (unless take working lunch)

29. FLORIDA STATE UNIVERSITY Office of Human Resources Next Steps—Departments Review data  Bring questions & concerns to HR  Review position descriptions & correct misclassifications  Review employees with Dual Compensation Disseminate preliminary information with managers/staff  Likelihood of reclassifications and limited salary increases Do NOT begin informing individual impacted employees  Recommendations may shift until finalized

30. FLORIDA STATE UNIVERSITY Office of Human Resources Next Steps—Timeline Summer  soliciting input from departments  finalizing recommendations & budgetary arrangements Fall  HR will communicate final recommendations to departments  After salary increases implemented  implementing changes centrally  notifying employees  training managers and employees

31. FLORIDA STATE UNIVERSITY Office of Human Resources Resources HR website FAQs

32. FLORIDA STATE UNIVERSITY Office of Human Resources FLSA Contacts Sarah Mirkin – All FLSA smirkin@fsu.edu (850) 644-6602 Shelley McLaughlin – Classification/Compensation sscopoli@fsu.edu (850) 644-7935 Christine Conley – Timekeeping/Travel caconley@fsu.edu (850) 644-1978

33. FLORIDA STATE UNIVERSITY Office of Human Resources Questions?

34. FLORIDA STATE UNIVERSITY Office of Human Resources Up Next September HR Forum: Benefits Tips September 22, 2016 October HR Department Rep Meeting TBD

35. FLORIDA STATE UNIVERSITY Office of Human Resources One-on-One Questions SectionRepresentative Attendance & LeaveChristine Conley Benefits/RetirementLinda Lieblong Compensation ServicesDiane Hamilton Diversity & InclusionMichelle Douglas Employee & Labor RelationsTracey Pearson Employee Data ManagementChristine Conley Employment & Recruitment ServicesTaylor Moore Equal Opportunity & ComplianceAmber Wagner Facilities HRShiffany Rawls Faculty RelationsDanni Staats Training & Organizational DevelopmentSandra Dixon