1. “The Changes to FLSA’s Overtime Rules and Its Impact on South Dakota Schools” SDASBO Fall Conference September 21, 2016

2. FLSA CHANGES I. Introduction & Fundamentals II. Exempt v. Nonexempt Employees III. Exemptions IV. Final Rules V. Suggestions

3. FLSA CHANGES Introduction & Fundamentals

4. FLSA CHANGES FINAL OVERTIME RULES ■ Issued May 18, 2016 ■ Effective December 1, 2016

5. FLSA CHANGES PURPOSE OF FINAL OVERTIME RULES? ■ Update the Rules ■ White Collar Salaried Employees Exempt? ◦ Minimum Wage ◦ Minimum Wage ◦ Overtime Protections ◦ Overtime Protections

6. FLSA CHANGES FINAL OVERTIME RULES ■ Mechanism for Automatically Updating Salary and Compensation Levels – Every Salary and Compensation Levels – Every Three Years Three Years ■ January 1, 2020 - Automatic Updates Begin Begin■

7. FLSA CHANGES What Is the FLSA?

8. FLSA CHANGES ■ Federal Law That Establishes Standards ■ Minimum Wage ■ Overtime Pay ■ Recordkeeping

9. FLSA CHANGES “Overtime” ■ Work in Excess of 40 Hours/Week ■ Rate of Not Less Than One and One-Half Regular Rate of Pay Regular Rate of Pay

10. FLSA CHANGES Exempt Employees v. Nonexempt Employees

11. FLSA CHANGES “Exempt Employees” ■ Covered by FLSA ■ Exempt From Overtime Requirements

12. FLSA CHANGES “Nonexempt Employees” ■ Subject to All FLSA Requirements

13. FLSA CHANGES WHAT ARE THE EXEMPTIONS?

14. FLSA CHANGES “White Collar” Exemption

15. FLSA CHANGES Three Requirements for “WC” Exemption ■ Employee Paid on SALARY BASIS ■ Employee Paid at SALARY LEVEL ■ Employee Meets PRIMARY DUTY

16. FLSA CHANGES SALARY BASIS ■ Paid a Predetermined and Fixed Salary ■ Cannot Be Reduced For Quality/Quantity

17. FLSA CHANGES SALARY LEVEL ■ Paid More Than a Specified Weekly Salary ■ $47,476/Annually ■ $913/Week

18. FLSA CHANGES PRIMARY DUTY Primarily Perform ■ Executive ■ Administrative ■ Professional

19. FLSA CHANGES Executive Employees ■ Management of District or Department ■ Oversight of Employees & Control Work ■ Buildings & Grounds Supervisor ■ Food Service Director

20. FLSA CHANGES Administrative Employees ■ Management of District or Department ■ Running/Servicing District or Department ■ Finance or Human Resources Director

21. FLSA CHANGES Administrative Employees ■ Academic Operations ■ Superintendent/Principal/Counselor

22. FLSA CHANGES Professional Employees ■ Requires Advanced Knowledge in Science or Learning Through Specialized or Learning Through Specialized Instruction Instruction ■ School Nurse/School Therapist

23. FLSA CHANGES Computer Employees ■ Computer Analysts ■ Computer Programmers ■ Other Skilled Workers in Computer Field

24. FLSA CHANGES What About Teachers?

25. FLSA CHANGES ■ Primary Duty is Teaching, Tutoring, Instructing, or Lecturing Instructing, or Lecturing ■ Not Subject to Salary Basis Test ■ Not Subject to Salary Level Test

26. FLSA CHANGES ■ Regular Academic Teachers ■ Kindergarten and Nursery School Teachers Teachers ■ Gifted or Disabled Children Teachers

27. FLSA CHANGES What About Coaches?

28. FLSA CHANGES ■ Employee Who ONLY Coaches – Likely Does NOT Meet Any Exemption Does NOT Meet Any Exemption ■ Part Time Coach & Full Time Teacher – Likely Does Meet Exemption Likely Does Meet Exemption

29. “The Changes to FLSA’s Overtime Rules and Its Impact on South Dakota Schools” SDASBO Fall Conference September 21, 2016