1. Human Resource Services| October 2016
FLSA changes
Human Resource Services| October 2016

2. Today’s Agenda Provide brief overview of the FLSA changes
Review analysis and identified impact
Discuss “path forward”

3. Changes to the FLSA
Effective December 1, 2016, the minimum salary threshold at which a position will be considered “exempt” from overtime pay will increase to $47,476 annually, or $913 per week
Up from $23,660 annually, or $455 per week
Annualizing an employee’s salary based on partial FTE is not permitted
The annual threshold may be adjusted for 9- and 10-month appointments by applying the $913 weekly amount (9-Month: $35,607.00, 10-Month: $39,806.80)
The salary threshold will be updated every three years
Estimated to be more than $50,000 in 2020
Currently exempt positions below the new salary threshold will be eligible for overtime once the change takes effect, with some exceptions

4. Assessing Impact—Exemptions
According to DOL guidelines, there is no minimum salary requirement for employees whose “primary duty” is the performance of “teaching, tutoring, instructing or lecturing”:
Given that the performance of these duties is a primary responsibility of any faculty member, including extension county faculty, it is our interpretation that most academic personnel meet that standard
The minimum salary requirement also does not apply to certain licensed or certified doctors or lawyers
An employee who holds the requisite academic degree for the general practice of medicine is exempt from the minimum salary requirement if he or she is engaged in an internship or resident program for the profession—interpreted to apply to residents throughout UF Health, including dentistry and veterinarian medicine
Several categories of student classifications such as graduate assistants and pre-doctoral fellows are not expected to be impacted
Postdoctoral associates who engage only in research activities and do not teach are explicitly not covered by this exemption and will be impacted

5. Assessing Impact Total Salary Gap* 5 hours/OT 10 hours/OT
As of 5/27/2016
*Salary only
**29 of the 72 are less than 1.0 FTE. In these cases, possible OT was not included in the calculation
Total Salary Gap*
5 hours/OT
10 hours/OT
Impacted Employees
1,777
13,256,179
12,679,290
25,358,581
Staff
1,213
8,415,974
8,861,458
17,722,916
Academic Personnel (including adjuncts)
72**
1,055,939
308,173
616,346
Postdoctoral Associates
466
3,233,011
3,428,620
6,857,240
OPS Exempt 26
551,254
81,039
162,078

6. Assessing Impact Total Salary Gap* 5 hours/OT 10 hours/OT
As of 5/27/2016
Total Salary Gap*
5 hours/OT
10 hours/OT
Impacted Employees
1,777
13,256,179
12,679,290
25,358,581
Provost
607
5,055,534
4,235,341
8,470,682
HSC
561
3,927,757
4,028,755
8,057,511
IFAS
488
3,668,639
3,500,024
7,000,049
President/ Research 62
278,301
481,775
963,551
COO 59
325,946
433,393
866,786

7. Assessing Impact Total Salary Gap* 5 hours/OT 10 hours/OT
As of 5/27/2016
Total Postdoctoral Associate: 632
+ ~$650,000 for fringe
26 part-time
Total Salary Gap*
5 hours/OT
10 hours/OT
Postdoctoral Associates
466
3,233,011
3,428,620
6,857,240
Provost
112
892,424
769,937
1,539,874
HSC*
198
1,258,326
1,515,557
3,031,114
IFAS
155
1,081,086
1,134,443
2,268,887
President/ Research 1
1,173
8,681
17,363
*There are 3 adjunct clinical postdoctoral associates not included for whom some additional analysis is warranted

8. Options Raise all employees to protect exempt status
Raise some employees to the threshold based on duties
Work to minimize impact and give discretion to department/college
Not feasible at a cost of more than $13 million
Also not desirable:
Would create compression issues
Disregards performance or years of experience
In many cases, not known if overtime worked is an issue
Given their strategic role in supporting research and the likelihood of overtime accrual, it was recommended that UF raise full-time postdoctoral associate salaries to the threshold
FSU is expected to increase postdoctoral salaries (160 total postdocs of which 110 will be impacted, with a salary gap of 877,147.55)
Move employees below threshold to a new “Salaried Non-Exempt” category
Allows time to evaluate and realign employee workload to prevent overtime worked or pursue a market adjustment if possible
Will need to pay or provide compensatory leave at 1.5 times the employee’s hourly rate of pay if needed

9. After Review:
Adjust full-time postdoctoral associates to the new salary threshold
Implement salaried non-exempt category for staff and “academic personnel” who cannot be exempted
Allow colleges/departments to adjust based on financial analysis and budget via the special pay increase process
With the recommendation of waiting until after January 1 increase if needed

10. University Work Group Members
HR: Jodi Gentry, Melissa Curry, Brent Goodman
CFO: Mike McKee, Greg Dubois, Linda Orfield, Brian Kuhl, Alan West
Provost’s Office: Angel Kwolek-Folland, Bill Connellan
General Counsel: Ryan Fuller
UF Health: Laura Huntley
IFAS: Mary Ann Morgan
Research: Stephanie Gray, Brad Staats
Student Affairs: Norb Dunkel  

11. Recommendations for Implementation | October 2016
FLSA changes
Recommendations for Implementation | October 2016