1. FLSA Overtime Regulation 2016 Final Rule

2. Overview New Department of Labor regulation Plan for Western Kentucky University Timelines

3. New DOL Regulation Sets the non-exempt salary threshold at the 40 th percentile - $913 per week; $47,476 annual for a full-year worker Employees below the salary threshold will now be non-exempt (approximately 400 at WKU) Non-exempt are eligible for overtime Overtime – any hours worked over 40 in a work week Rebalances every 3 years No change to duties test Provides additional guidelines for Higher Education

4. WKU’s Plan of Action HR, Payroll, and IT team meeting weekly to plan for the regulation Affected employees identified Communication with departments, the President and Administrative Council are actively happening Identified potential exempt individuals Teachers, Coaches/Asst. Coaches, 9/10/11 month Transitioning positions – new hires and reclass

5. Non-Exempt Reminders Semi-monthly timesheet is required to be completed Time utilized for vacation or sick should be logged on the timesheet The same process should be utilized for leave through TopNet Overtime will be managed within each department Most departments will require overtime to be pre-approved Continuously not complying with the pre-approval process of overtime could result in disciplinary action, up to and including termination Departments will provide guidelines on after hours’ work This includes checking email, overnight travel, working offsite, etc. The flex-time policy is an option for balancing work hours within a workweek

6. Next Steps and Timeline Current – Communication with department and division leaders August Letter communication to affected employees October-November Mandatory non-exempt training Supervisor training On-going Updating current policies affected by new regulation Website updates including FAQs and HR recommendations October 1, 2016 – Effective date of WKU transition to new regulation from a system standpoint December 1, 2016 – Effective date of new DOL regulation and overtime timekeeping requirement

7. Questions?