1. Fair Labor Standards Act

2. FLSA Changes Effective December 1, 2016
Salary threshold for overtime exemption status increases from
$23,660 annually  to $47,476 annually
Classified and non-classified positions that are currently exempt from overtime may become non-exempt
Non-exempt positions require overtime compensation for hours worked over 40 each week
Compensatory time
Time-keeping requirements required for non-exempt positions

3. Exemptions Teaching Residential Assistants
Positions where the primary duty is instruction are exempt.
Primary duty doesn’t necessarily mean the time spent teaching; just that teaching is a basic duty of the position.
Research does not qualify for exempt work.
Residential Assistants
If an RA is enrolled in a bona fide educational program and they receive reduced room and board or tuition credits, they are not subject to FLSA.

4. How Does This Change Affect Our Campus?
640 positions may be affected on December 1
73% Non-Classified / 27% Classified
72 positions are within $2,000 of $47,476
Cost to retain exemption for these positions: $97,500 + FB

5. Post Doctoral Fellows
27 positions may be affected/15 positions are funded by grants
Mostly in Engineering and Fulbright College of Arts & Sciences
Could cost $210,000 (+FB) to retain exemption status
Departments with grant-funded positions should work with Class Comp and RSSP to identify ways to reallocate grant funds to increase salaries (i.e. National Science Foundation)

6. Recommended Actions for Impacted Employees
Approximately 65 staff members are currently recommended for salary level increases to meet the minimum of $47,476
This number could grow as data is reviewed regarding projected overtime hours for individual staff members.
Approximately 175 employees cannot have salary levels increased because they are state classified employees.
Currently, we project approximately 400 non-classified staff will become non-exempt due the FLSA regulatory changes.

7. Communication Plan Began visiting departments in February 2016
Talked late last spring with RSSP
NEWSWIRE article day after final ruling
Road Show: Met with HR and Financial Officers to review individual positions
August 2016: Provided HR Reps with survey and time sheets to give to employees to begin gathering data

8. Options for Responding to Changes
Increase salaries to maintain exemption
At the unit level / No central funding
Not possible with Classified positions
Pay current salaries with overtime after 40 hours worked in a week
Sunday - Saturday work week
Compensatory time earned for hours over 40
Comp time limited to 240 hours
Payments for OT will be at the unit level
Reorganize workloads, adjust schedules
Adjust wages

9. Deadline to Identify Salary Changes
Departments should recommend positions for salary increases by October 28th
Include funding source
Justification

10. TIME KEEPING Developing a Time Keeping Policy
Training will be offered to supervisors and employees
Non-exempt employees will not be allowed to work without recording time
Departmental guidelines will need to be established for checking work related after hours.

11. Additional Communication
Direct communication from HR to supervisors and employees
NEWSWIRE updates
Website for Q&A
Training:
Developing training for supervisors and employees
Online
In person
Should be rolled out around September 19th
Meetings with Departments and Groups

12. Recommended Implementation
Move Exempt positions to Non-Exempt status effective November 27, 2016
Salary increases to retain exempt status should be effective on or before December 1, 2016

13. What We Need From You
Help us identify which grant-funded positions may need to have grant money reallocation.
Help us identify which grant funded positions are not grant-funded in which your area would like to move to the minimum salary level for exempt employees of $47,476.
Help us review for equity issues.
Communicate suggested changes to us.