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 ablishes overt ime t hreshold (40 hrs. per week) S pecifies record-keeping requirement s
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
Temporary Inj unction On November 22, 2016, a U.S . District Court j udge issued a preliminary inj unction postponing the December 1 st 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 on 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.
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
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 or cat egory of posit ion
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 overt ime)
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
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
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
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.
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
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
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
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.
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.
What should supervisors discuss with employees who are becoming Nonexempt? (cont.) Discuss adj ust ment s t o work schedules when work must occur out 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.
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.
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 Current comp. time balance remains as is (no cash value) • (Meet duties test for exemption) 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
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.
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