FLS A Changes Overtime Regulations and How They Affect Y ou Fair - - PowerPoint PPT Presentation

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FLS A Changes Overtime Regulations and How They Affect Y ou Fair - - PowerPoint PPT Presentation

FLS A Changes Overtime Regulations and How They Affect Y ou Fair Labor S tandards Act (FLS A) Est ablishes minimum wage & overt ime st andards Distinguishes bet ween exempt and nonexempt (overt ime eligible) employees Est


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SLIDE 1

FLS A Changes

Overtime Regulations and How They Affect Y

  • u
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SLIDE 2

Fair Labor S tandards Act (FLS A)

 Est ablishes minimum wage & overt ime st andards  Distinguishes bet ween exempt and nonexempt (overt ime eligible)

employees

 Est ablishes overt ime t hreshold (40 hrs. per week)  S

pecifies record-keeping requirement s

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SLIDE 3

Changes to FLS A

 Depart ment of Labor (DOL) has made significant changes t o t he

salary t hreshold for det ermining eligibilit y for overt ime compensat ion

 Current ly: $455 weekly = $23,660 annually  Effect ive December 1, 2016: $913 weekly = $47,476 annually

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SLIDE 4

Temporary Inj unction

On November 22, 2016, a U.S . District Court j udge issued a preliminary inj unction postponing the December 1st effective date of the U.S . Department of Labor (DOL)’s overtime salary threshold increase. What does this mean?

 The contents of this presentation are accurate for those employees

whose duties have been determined to be Nonexempt.

 Those employees with exempt duties who were changing to Nonexempt

  • n 12/ 1/ 16 based on the new salary threshold will remain Exempt.

Human Resources will advise the University community when and if a change is implemented.

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SLIDE 5

S ignificance

 Universit y posit ions were previously designat ed solely as

Classified or Unclassified

 Unclassified posit ions will now also be designat ed as Exempt or

Nonexempt (overt ime eligible)

 Changes t o FLS

A do not affect Classified posit ions

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SLIDE 6

Human Resources S tudy

 HR examined dut ies and compensat ion of current Exempt posit ions  Det ermined if posit ions should be convert ed t o Nonexempt st at us  Decision based on dut ies and responsibilit ies (DOL dut ies t est )  Exempt ion st at us NOT based on classificat ion, role, working t it le

  • r cat egory of posit ion
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SLIDE 7

Exemption Determination Factors

 Must sat isfy t hree crit eria t o be considered Exempt from overt ime:

  • 1. Paid on a salaried basis
  • 2. Meet or exceed t he new salary t hreshold ($913 wk./ $47,476 yr.)
  • 3. Primary dut ies consist ent wit h exempt cat egories as defined by

t he Depart ment of Labor (DOL) dut ies t est

 If all crit eria not met , posit ion considered Nonexempt (eligible for

  • vert ime)
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SLIDE 8

Exempt Categories

 Executive: primary duty is managing the enterprise, or a department;

ability to authorize personnel actions

 Administrative: primary duty includes exercising discretion and

independent j udgement with respect to matters of significance to the enterprise

 Learned Professional: primary duty is to perform work that either

requires advanced knowledge in a field of science or learning

 Creative Professional: primary duty is the performance of work

requiring invention, imagination, originality, or talent

 Computer Professional: primary duty is application of system analysis

techniques, design, development, or modification of computer programs

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SLIDE 9

S pecific Guidance for Higher Education

 Inst ruct ors

Exempt if primary dut y is t eaching, t ut oring, inst ruct ing or lect uring. No salary requirement for bona fide t eachers.

 Academic Advisors and Counselors  Primary dut y is performing administ rat ive funct ions direct ly

relat ed t o academic inst ruct ion or t raining.

 Must be paid on a salary basis at least equal t o t he ent rance

salary for t eachers.

 UL Inst ruct or Minimum: $34,000/ 10-mont h = $45,333/ 12-mont h

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SLIDE 10

S pecific Guidance for Higher Education

 Post doct oral Fellows/ S

cholars

 Oft en meet t he dut ies t est for t he “ Learned Professional”

exempt ion.

 Must also sat isfy t he salary basis and salary t hreshold t o qualify

for t his exempt ion.

 At hlet ic Coaches  Qualify for t he t eaching exempt ion if t heir primary dut y is

inst ruct ing st udent -at hlet es about physical healt h, t eamwork, and safet y.

 Primary dut ies such as recruit ing or administ rat ive work do not

sat isfy t he t eacher exempt ion.

10

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SLIDE 11

S pecific Guidance for Higher Education

 Graduat e Teaching Assist ant s

Covered under t he t eaching exempt ion, if t eaching is primary dut y.

 Graduat e Research Assist ant s

Ineligible for overt ime compensat ion if engaged in research under a facult y member’s supervision while pursuing a degree.

 Graduat e Assist ant s

Ineligible for overt ime compensat ion as prohibit ed from working full-t ime.

 Resident Assist ant s

Generally not considered employees under FLS A, as compensat ion includes reduced room or board charges or t uit ion.

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SLIDE 12

Exempt Positions

 Pass exempt dut ies t est AND meet salary t hreshold  Ineligible for overt ime compensat ion  Will cont inue earning 1 hour of Compensat ory t ime for each

hour worked in excess of 40 hours in a work week*

 NOTE: Not all Exempt posit ions earn compensat ory t ime  No cash value for Comp. t ime balance upon resignat ion or

ret irement

*annual, sick, and holiday leave do not count toward hours worked

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SLIDE 13

Nonexempt Positions

 Do not meet t he salary t hreshold and/ or exempt dut ies t est  Eligible for overt ime compensat ion  Will earn 1.5 hours of Compensat ory t ime for each hour worked

in excess of 40 hours in a work week*

 When Comp. t ime balance reaches 30 days (240 hours), any

excess comp. t ime will be paid t o employee

 Upon ret irement or resignat ion, Comp. t ime balance will be

paid t o employee

*annual, sick, and holiday leave do not count toward hours worked

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SLIDE 14

FLS A changes will not affect:

 WebAid process for request ing compensat ory t ime, submit t ing

t imesheet s, or recording comp. t ime worked remains t he same

 Exempt ion st at us does NOT affect :

 Job title  Rate of pay  Annual or sick leave accrual rate  Leave charged for forced holidays  Benefits eligibility

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SLIDE 15

What does this mean for the University?

 Previous Exempt posit ions may be convert ed t o Nonexempt st at us,

becoming eligible for overt ime compensat ion.

 Budget s may require adj ust ment t o accommodat e Comp. t ime

payout s t o Nonexempt employees.

 All overt ime worked by Nonexempt employees must be

compensat ed.

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SLIDE 16

What should supervisors discuss with employees who are becoming Nonexempt?

 Clearly communicat e work schedule pract ices in order t o manage

hours for newly Nonexempt employees, especially if t heir dut ies will not be changing.

 Review guidelines for responding t o email or calls out side of

normal work hours as t his const it ut es overt ime.

 Advise Nonexempt employees of priorit ies t o avoid “ last minut e”

proj ect s requiring overt ime t o complet e.

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SLIDE 17

What should supervisors discuss with employees who are becoming Nonexempt? (cont.)

 Discuss adj ust ment s t o work schedules when work must occur

  • ut side of normal business hours.

 Require t hat all Comp. t ime be approved prior t o overt ime

being worked.

 Discuss pot ent ial for disciplinary act ion for working

unaut horized overt ime.

 Explain how t o request , t rack, and report Compensat ory Leave.

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SLIDE 18

Moving forward…

 All posit ion request s will be reviewed by t he Office of Human

Resources t o ensure proper exempt ion st at us is assigned during t he posit on approval process.

 Updat ed Job descript ions will be essent ial t o proper FLS

A classificat ion, especially as posit ions evolve and change.

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SLIDE 19

Overview of Changes

Classified Positions

  • All currently Nonexempt
  • Not affected by changes to FLS

A Faculty

  • Exempt as Teaching is primary duty
  • No salary minimum

Positions Remaining Exempt

  • No changes
  • Continue to earn comp. time at rate of 1:1*

*Not all Exempt posit ions earn comp. t ime

Nonexempt due to S alary Threshold (Meet duties test for exemption)

  • Current comp. time balance remains as is (no cash value)
  • Beginning Dec. 1st can earn overtime at rate of 1.5 hours

for each hour worked above 40 per week

  • Only comp. time earned as Nonexempt employee will be

paid upon separation Nonexempt due to Duties Test

  • Current comp. time balance increased by 50%
  • Beginning Dec. 1st can earn overtime at rate of 1.5 hours

for each hour worked above 40 per week

  • All comp. time paid upon separation
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SLIDE 20

Questions should be directed to HRreply@ louisiana.edu The final determination of exemption status is determined by the Office of Human Resources.

Thank you f or your cooperat ion as we work t o make t his t ransit ion as smoot h as possible.