1. FAIR LABOR STANDARDS ACT (FLSA)

2. Objectives Define the Fair Labor Standards Act (FLSA)
New salary mandate from Department of Labor (DOL)
Implementation
Overtime/Compensatory Time Guidelines
Best Practices

3. What is the Fair Labor Standards Act?
Law addresses:
Child labor laws
40 hour work week
Minimum wage ($7.25/hr effective 7/24/2009)
Overtime pay (and allowed exemptions)
Offers Duties tests:
Exempt positions – ineligible for overtime
Non-Exempt positions – eligible for overtime

4. Exempt - Current Requirements
Effective October 1, 2004
Qualify under Administrative, Executive, Professional, Computer Exception
Duties Test
Regularly receive a pre-determined salary each pay period
Salary Basis Test
Must make at least $455 per week ($23,660 per year)
Salary Level Test

5. Exempt - New Requirements
Effective December 1, 2016
Qualify under Administrative, Executive, Professional, Computer Exception
Duties Test
Regularly receive a pre-determined salary each pay period
Salary Basis Test
Must make at least $913 per week ($47,476 per year)
Salary Level Test

6. What is Non-Exempt? Non-Exempt
Must be paid at a rate equal to or greater than minimum wage
Must be paid for all physically worked hours
Must be paid 1.5 hours for each physically worked hours in excess of 40 in a standard workweek by affording:
Compensatory hours
Overtime Pay

8. Implementation
University to apply new mandate to Managerial Equivalent Roles:
Is the employee’s primary duty managing the university or an official department* or sub-department** of the university?
Does the employee customarily and regularly require directing the work of two or more other staff employees or their equivalent?
Does the employee have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees relied upon?
Does the employee’s primary duty include the exercise of discretion and independent judgment with respect to matters of significance?

9. Implementation Managerial Equivalent Roles identified
Positions will remain Exempt
Salary will increase to $47,476, as applicable
Exempt positions deemed non-Managerial Equivalent Roles
Reclassified to Non-Exempt

10. Implementation
Lawsuit (23 states) filed requesting an injunction to delay mandate until June of 2017
UTEP will move forward with 12/1/2016 deadline, unless further clarification is provided by the Department of Labor.

11. Overtime/Compensatory Time Guidelines
What is Overtime?
Physically worked hours in excess of 40 hours in a given workweek
Must be paid if non-exempt employee is expected or permitted to work by the supervisor.
Some examples include:
Returning work related s, texts, or telephone calls outside of regular work hours
Arriving at and beginning work prior to the agreed upon work schedule
Remaining at work station during the lunch hour and answering phone calls or covering the reception area

12. Overtime/Compensatory Time Guidelines
Workweek
12:01 a.m. Monday and ends at midnight the following Sunday
Non-Exempt Overtime
Earned at time and a half (1.5) for all hours worked in excess of 40 hours standard workweek
Must obtain prior approval from supervisor to accumulate
Time off may be granted in lieu of pay and must be taken within 120 days of being earned
Time may be paid if unable to take the time off or if supervisor determines to pay out upon accrual

13. Best Practices - Employee
Work the hours set by your supervisor
Obtain prior approval to work in excess of 40 hours in a workweek to include responding to / text / telephone calls after designated work hours
Discuss work schedule adjustments with your supervisor and with sufficient notice to make adjustments to work hours and/or work coverage
Accurately record all physically worked hours submit a timesheet on a weekly basis
Monitor compensatory time balance
Cell phone allowances impacted

14. Best Practices – Supervisor
Assess work load and responsibilities for impacted employees; realign as necessary Establish process for overtime approval requests; ensure prior approval is obtained in writing Establish alternate work schedules, as necessary, to ensure business needs are met and overtime is minimized Closely monitor physically worked hours and adjust work schedules, as deemed necessary Track all physically worked hours via timesheets Establish compensatory time off as initial guideline and allow employees to take the time within 120 day window

15. Questions?
If you have any questions or need additional information, please call x 5202 or questions to

16. Helpful Resouces UTEP Links: Overtime/Compensatory Guidelines
Handbook of Operation Procedures
University Pay Plan
DOL Links:
DOL Fact Sheet  on Updates to Exemptions for Executive, Administrative, and Professional Employees
DOL’s Overtime Final Rule and Higher Education
DOL’s Guidance for Higher Education Institutions on Paying Overtime under the Fair Labor Standards Act