FLSA TOWN HALL Q&A on the Final Regulations and Changes to the - - PowerPoint PPT Presentation

FLSA TOWN HALL

Q&A on the Final Regulations and Changes to the Fair Labor Standards Act

Fall, 2016

Agenda Topics:

 Overview of the Fair Labor Standards Act  Department of Labor Final Rule  Specific Guidance for Higher Education  USG Information  Tools and Resources  Questions

Overview of the Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

FLSA: What & Why

 What this means

• Most VSU employees below the $47,476

salary will have their exempt status change of exempt to non-exempt.

• Impacted employees will be required to

accurately record their daily working time and will have the right to overtime, compensated as compensatory time (comp time) at a rate of 1 ½ hours (time and a half) for each and every hour worked in excess of 40 in the designated workweek

Agenda Topics:

 Overview of the Fair Labor Standards Act  Department of Labor Final Rule  Specific Guidance for Higher Education  USG Information  Tools and Resources  Questions

Key Provisions of the Final Rule

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The proposed rule establishes a mechanism for automatically updating the salary and compensation levels every 3 years, starting January 1, 2020. No changes were made to the duties tests.

The Threshold will Adjust Automatically Every 3 Years Consideration of Making Changes to the Duties Tests

The final rule increases the salary threshold to $913/week; $47,476 annually.

Minimum Salary Threshold will Significantly Increase

The effective date of the Final Rule is December 1, 2016.

Agenda Topics:

 Overview of the Fair Labor Standards Act  Department of Labor Final Rule  Specific Guidance for Higher Education  USG Information  Tools and Resources  Questions

Specific Guidance for Higher Education

 Instructors – under the Professional duties exemption

• T

eachers are exempt if their primary duty is teaching, tutoring, instructing or lecturing in the activity of imparting knowledge, and if they are employed and engaged in this activity as a teacher in an educational establishment.

• The salary and salary basis requirements do not apply to bona fide teachers.

 Graduate Teaching Assistants

• Graduate teaching assistants who have teaching as their primary duty are

covered under the teaching exemption and are not subject to the salary tests, remaining exempt under the Final Rule.  Graduate Research Assistants

• Generally, the DOL views graduate students who are engaged in research under

a faculty member’s supervision in the course of obtaining a degree as being in an educational relationship with the school. Therefore, the DOL would not assert an employment relationship with either the school or any grantor funding the

• research. Thus, in these situations, the DOL will not assert that such workers

are entitled to overtime.

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Specific Guidance for Higher Education

 Athletic Coaches:

• Athletic coaches employed by higher education institutions may

qualify for the teaching exemption.

 Resident Assistants

• Student residential assistants enrolled in bona fide educational

programs who receive reduced room or board charges or tuition credits from the university are not generally considered employees under the FLSA, and therefore are not subject to the FLSA’s wage and hour requirements.

 Other Titles are under review by the USG System Office

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Agenda Topics:

 Overview of the Fair Labor Standards Act  Department of Labor Final Rule  Specific Guidance for Higher Education  USG Information  Tools and Resources  Questions

Timeline

 September

• Communication to individuals affected by the

change.

• Town Hall Information Sessions
• Supervisor Trainings

 October

• Supervisor and Employee Communication
• Employees Receive last Monthly check

 November

• Employees receive biweekly paychecks

beginning with the November 10 payroll.

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Employee Communication

 #1: A Letter will be sent via Senior

Administrator denoting all affected employees.

 #2: A Letter will be sent via Senior

Administrator denoting the personalized change to each employee.

• Title Change
• Exemption Change
• Salary Change

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Steps to take Before Oct. 1

 Employee Self Service

• View your Pay
• Record your time

 Review Direct Deposit and Deductions

for adjustments needed (Sept. Payroll)

 Review personal finances for timing

changes needed for creditors

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Steps to take Before Oct. 24

 Review your direct deposit  Review your deductions  Review tax withholding amounts

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Steps to take Before Nov. 14

 Check personal accounts for deposit  Make any changes necessary to tax

withholding and benefits

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Example…

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 http://www.paycheckcity.com/cokronos/netpaycalculator.asp

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Bi-Weekly Pay Schedule

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Things to Remember

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 Any changes to TSA

accounts will need to be done manually

 All Deductions will automatically be divided in

half for biweekly (24 weeks)

 Withholding amounts or flat amounts will need

to be edited (Tax Withholding, Auto Deposit to Savings, etc.

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Agenda Topics:

 Overview of the Fair Labor Standards Act  Department of Labor Proposed Changes  USG Information  FAQ’s  Questions

FAQ’s

 Can employees opt out of this

change if they want to continue to be considered a salaried or exempt employee?

• No. FLSA is a federal law. The determination
• f an employee’s FLSA status is governed by

the requirements of the federal law – it is not an employee choice.

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FAQ’s

 How is tracking hours worked different

for an hourly non-exempt employee?

• Non-exempt employees must account for time

worked rather than accounting for leave used. All time worked must be reported.

 When is an employee entitled to

• vertime pay?
• At VSU the decision has been made that only

University Police and Plant Facilities employees are eligible for overtime. All others will receive compensatory time off.

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FAQ’s

 If compensatory (comp) time is

permitted, how much comp time can be accumulated?

• The rules allow an accumulation of not more

than 240 hours in a fiscal year.

• Compensatory time must be used before using

vacation or sick time. Compensatory time is only accrued for a week of work; thus if you have sick, annual or holiday leave within that week then you would not normally accrue compensatory time

• The accrual and use of compensatory time must

be approved by the supervisor. Please see the Compensatory Time Off policy

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FAQ’s

 Will use of banked Compensatory Time be

mandated when requesting Sick or Annual Leave?

• Yes. If an employee has compensatory Time accrued it will

be utilized prior to using sick or annual leave. This will alleviate reaching the 240 hours limits on compensatory time and will also help employees in maintaining their sick and annual leave.

 Will use of banked Flex Time be eliminated?

• Yes. Employees should be managing their Flex Time based
• n the USG Flex Time policy. There will be no carryover of

flex time into a comp time bank. Each department may choose how they would like to handle any flex time that an employee who is changing to non-exempt from exempt may have logged.

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FAQ’s

 What about my parking decal?

• If you have already purchased a reserve decal you can keep

it.

• If you have already purchased a reserve decal you can get a

refund if you would like to change your decal to a staff decal.

 What about my monthly October and

November deductions?

• October premiums will be deducted from the October

paycheck as normal. Deductions will be taken from each bi-weekly in November. The November 10 payroll will have the biweekly premium deductions taken. Discussions are being had in reference to any employee who may not be able to pay their full deductions and taxes as this check will have only 4 days included. Biweekly premiums will be deducted on each paycheck except for 3rd biweekly paychecks that occur twice per calendar year.

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FAQ’s

 How will I offset the financial loss in

November and December for changing my exemption status?

• The University System has been developing ways to

help support you with the transition to bi-weekly pay and the impending lag in payment that will occur because of this change. The University System will

• ffer employees the ability to “cash out” up to 48

hours of their accrued vacation leave. Your manager will share more information about this option later this month.

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Question and Answer