1. CC Response to DOL Overtime Regulations

2. What is Changing? Salary Threshold:
Current: $455/week (equal to $23,600/year for full time)
New: $913/week (equal to $47,476/year for full time)
40th Percentile of full time salaried workers in Lowest Wage Census Region (South)
Will be adjusted every 3 years beginning in 2020
Effective December 1, 2016

3. Topics for Today: Overview of Fair Labor Standards Act (FLSA)
“White Collar” Exemptions
Overtime, Travel Time – How to Manage?
Timeline of Activities

4. The Basics of Overtime
Fair Labor Standards Act – legislation that governs minimum wage and overtime
Exemptions – 3 Tests
Must be paid a salary (salary basis test)
Must receive a minimum specified salary (salary level test)
Primary job duties must involve executive, administrative, professional duties (duties test)
Non-Exempt - Paid overtime – 1 ½ times rate of pay for over 40 hours in a work week

5. Salary Basis and Salary Level Tests
Must be paid on a salary basis
Not subject to reduction based on quality or quantity of work
Salary must be at least $913 per week ($47,476 annually for 2080 hours)

6. The Duties Test
The primary job duty must be the kind of work associated with executive, administrative, or professional exemptions
Primary = principle, main, major, most important – reason the job exists
Job title alone is insufficient to establish exempt status

7. Executive Exemption
Primary duty - managing the enterprise OR a recognized department or subdivision
AND
Direct work of at least 2 FTE
Have authority to hire, fire OR have recommendations given weight

8. Administrative Exemption
Office or non-manual work
Primary duty must involve discretion and independent judgement …With respect to “matters of significance” directly related to management or business operations

9. Academic Administrators
Primary duty – administrative functions directly related to academic instruction or training
Academic administrative personnel who help run higher education institutions and interact with students outside of the classroom
Department heads, academic counselors, intervention specialists
Must meet the $913/weekly test or be paid the entry level salary paid to faculty

10. Learned Professional Exemption
Work requiring advanced knowledge/field of science or learning
Prolonged course of specialized intellectual study
Post docs, fellows

11. Creative Professional Exemption
Work requiring invention, imagination, creativity
Talent in a recognized field of artistic or creative endeavor

12. Computer Exemption
Computer systems analyst, programmer, software engineer, etc.

13. Special Provision for Teachers/Coaches
Primary duty must be teaching, tutoring, lecturing
Does not require a teaching certificate or a Bachelors degree
Includes advisors for drama, speech, debate or journalism programs
Exemption also applies to coaches depending on their duties
The salary level and salary basis test does not apply

14. Important to Know CC work week – Sunday thru Saturday
OT is only based on hours worked
OT is over 40 hours in single work week
CC is not able to use comp time
Salary threshold is not pro-rated for part-time employees
Regardless of FTE, must meet the $913 per week to be exempt
Student workers are not considered in an “employment relationship” for purposes of FLSA

15. Managing Overtime Schedules – how many hours will this job take?
Flex time – same work week
Split shifts
Record all hours worked

16. Travel Time for Non-Exempt Staff
Within one day – all paid time
Multiple days – paid time if cuts across regular hours even on days not usually worked
Commuting time is not paid time.
Working while traveling = hours worked
General rule – pay for all travel time unless it’s overnight and outside regular work hours

17. What is CC Doing?
Identifying exempt positions making less than new salary threshold
Determine strategies and costs to comply with new regulations (different way of doing our work, salary increase, change in overtime status)
Other Considerations – vacation, sick leave
Communication with staff who will be affected
Education for staff and supervisors