1. FLSA Overtime Regulations

2. What is FLSA?  Fair Labor Standards Act  Enacted by Congress in 1938  Regulates Overtime and Minimum Wage  Applies to all US employers  Regulations promulgated by the Department of Labor

3. Key Overtime Provisions  Establishes a 40 hour work week  Requires timekeeping  Overtime compensated at least at time and one-half  Broad intent  Exemptions based on duties and level of pay  Cannot “suffer or permit” employee to work

4. Compliance  There are NO “deals” to waive overtime compensation  Public employers can provide compensatory time at time x 1.5  All back pay at time and one-half  Liquidated damages up to twice the back pay  Employee’s legal fees  $1,100 fine per each violation  Individual discipline, prosecution, $10,000 fines, prison  Loss of Federal funding for education and research

5. What’s New?  Proposed regulations would have raised minimum annual salary threshold for overtime pay exemption from $23,660 to $50,440, effective September 1  Employers, including higher education and CU provided 290,000 comments  Final regulations raised threshold to $47,476, effective December 1

6. Impact Job GroupNumber of Affected Employees Research Faculty573 Postdoctoral Fellows198 Professional Staff196 TOTAL967 Cost up to $6.6 million

7. Exemptions  Professional/Administrative/Executive AND meet salary threshold  Physicians/Dentists/Residents  Attorneys  Teachers  Humanities postdocs who teach  “Academic professionals” paid more than teachers  Graduate Students

8. NOT Exempt  Postdocs  PRAs and Research Associates

9. Management Options  Prohibit or limit overtime worked  Increase salary to $47,476  Pay overtime

10. Decision Assistance  Department specific data  Cost calculator  Meetings with departments

11. Other Considerations  Budget  FTE  Compression  Equity  NO “Lowball”  Change Management  Morale  Time Tracking (including travel and part-time)  E-mail, texts and calls “after hours”

12. Implementation  Using My.Leave? Including comp time  Timing increases  Notifying affected employees and supervisors  New paygroups  Comp time accrual capped at 240 hours (480 for seasonal)

13. Future Issues  Accelerated/indexed adjustments: 40 th percentile every 3 years  NIH will increase awards for postdoc NRSA recipients to more than threshold Questions?