1. Employee workshop: November 2016
FLSA TRANSITION
Employee workshop: November 2016

2. Agenda Why are things changing Who is impacted When will things change
What changes will take place
How do I prepare
Resources

3. Why are things changing
The Department of Labor (DOL) recently issued a new ruling related to the Fair Labor Standards Act (FLSA) to be effective December 1, The provisions that most directly impact the University are:
The threshold for being classified as exempt (not eligible for overtime pay) increased from $23,660 to $47,476 per year ($913/week)
The threshold is prorated for part-time employees
Although the final ruling was issued in May 2016, the University needed time to figure out how to best implement the changes.

4. Who is impacted (and who is not)
Employees with the primary duty of teaching are exempt
Professors, Lecturers
Employees holding multiple positions (one teaching, one not, may be exempt)
Registered graduate students employed in graduate student titles are exempt
GSRs, TA’s, Associates, etc.
Without salary appointments are not impacted
All other employees are impacted if pay (including pro-rated for part time employees) is below the threshold

5. Impacted employees by group
Junior Specialists
All Junior Specialists will become non-exempt and transition to hourly pay
Assistant Specialist Step I and II
Pay scale will increase to bring rates above the threshold. Full time employees will remain exempt
Step I $44,367 to $47,484
Step II $47,268 to $48,492
Part-time employees (academic and staff) in any non-teaching, non-student title with prorated pay below the threshold will transition to hourly pay

6. More on FSLA determination
Determination of exempt or non-exempt will be made at the time of appointment, reappointment, or modification of the appointment.
Determination is made based on total employment, not per job
If also teaching, evaluated on an individual basis by Academic Personnel
Variable appointments or end of multiple appointments
Must change to non-exempt if below threshold for a month
May stay as non-exempt if occasionally above threshold
Will evaluate individually based on long-term intent

7. When will things change
DOL ruling takes effect December 1, 2016
UC changes will take place November 20, 2016; the start of a bi- weekly pay period
Some staff changes effective December 1, 2016

8. What changes will take place
An employee with a salary (full time or pro-rated for part-time) below the threshold will be classified as non-exempt and will:
Be paid on the bi-weekly pay schedule
Track and report time on an hourly basis
Be paid an hourly rate
Hourly rate= annual rate/2088
Be eligible for over-time pay if more than 40 hours of work in a week.
Overtime is paid at time-and-a-half
Additional hours below 40 hours are paid at the normal hourly rate.
Accrue vacation and sick leave on a factor basis vs. table basis

9. Non-Exempt Time-reporting considerations
Accurately report all hours worked
Vacation/sick leave taken to the nearest quarter hour.
Cannot work unreported hours
Employee as PI consideration
Get prior approval from supervisor for any variances in work schedule (either below or above 40 hours)
Entitled to rest breaks (included in time worked) and meal breaks (not included in time worked depending on the length of work-day)
Travel time: Work with departmental business officer to determine if travel time is counted as work-time or not

10. How the changes are being implemented
Pay schedule for those changing from exempt to non-exempt
December 1: receive pay for the period of November 1-November 19
December 14: receive pay for the period of November 20 to December 3
December 28: receive pay for the period of December 4-December 17
Vacation pay-out, if requested, will be issued with the December 1 paycheck

11. FLSA & Pay Cycle Comparison
Exempt/ Monthly Pay Cycle
Non-Exempt/Biweekly Pay Cycle
Pay Cycle
First to last day of the month
Sunday to Saturday, two-week period
Paychecks per Year 12 26
Paycheck Date
1st of the month
Every other Wednesday
Overtime
No overtime
Overtime at time-and-a-half if work exceeds 40 hours in a workweek
Leave accrual and usage
Table based accrual; full day increment usage
Factor based accrual; quarter hour increment usage

12. Other payroll considerations
Payroll deductions may be flat rate or percentage of earnings
Flat rate (e.g. insurance, loans) will come out of 24 checks
Percentage based (taxes, retirement) will come out of all 26 checks
Deduction holidays
Twice a year
Third check of the month
Biweekly calendar available on Payroll web-site or check with department business officer.

13. Planning your transition
Review own personal finances regarding planning, auto-payments, etc. and make necessary changes
Estimate your financial needs during the transition; November and December
Consider the Transition Assistance Vacation Cash Out program
Submit request to Academic Personnel by Nov. 10 (staff forms due to HR by Nov 14)
Talk with your departmental business officer about time reporting requirements

14. Vacation Cash Out Program
What is it?
A one-time opportunity for you to cash out up to 80 hours of accrued vacation leave to assist with the financial transition to bi-weekly pay.
What is required?
You must have the hours in your vacation bank.
How will the vacation cash out be calculated?
Cash out value = (hourly rate x vacation hours). It will be paid as part of your normal paycheck where it will be subject to taxes and percentage based deductions.
How do I make the request?
Fill out the employee portion of the request form. Ask your departmental business officer to provide the department information. Submit the completed form to Academic Personnel by November 10 (HR by Nov. 14)
When do I receive the cash out?
The cash out will be included in the December 1, 2016 pay check.

15. Resources Academic Personnel web-site Resources for Academic Employees
Transition Assistance (vacation pay out) request form
FAQs
Payroll web-site
Bi-weekly pay calendar
Departmental staff
Training held in October
Human Resources web-site (for staff employees)
Hours of Work/Overtime Guidelines guidelines

16. Academic Personnel contacts
Academic Coordinators:
Helly Kwee x5428
Karen Moreno x5429
Research titles other than listed below:
Joanna Kettmann x5048
Asst. Specialists, Jr. Specialists, Postdoctoral Scholars
Billy Ko x4441
General implementation questions:
June Betancourt x5728
Cindy Doherty x8332

17. Human Resources contacts (for staff)
For staff employee questions about the Vacation Cash Out program, contact
Edna Arellano x4048
For questions about time card and overtime approval, contact your supervisor
For questions about payroll deductions, pay schedules, and leave accrual questions, contact your department payroll preparer
For all other questions, contact the HR Compensation Analyst that supports your division/department. The contact list is available at: