DOL Changes. College Impacts Time and Attendance Updates

Transcription

1 DOL Changes College Impacts Time and Attendance Updates

2 Background On May 18, 2016, the U.S. Department of Labor announced changes to the Fair Labor Standards Act (FLSA) impacting its rules on overtime. The new law will become effective on December 1, Compliance required by federal mandate (not optional).

3 Exempt or Non-Exempt EXEMPT positions are not eligible for overtime and as such do not require specific record-keeping. NON-EXEMPT positions require that overtime is paid when the employee physically works more than 40 hours in any work week (Sunday-Saturday). This requires some form of record-keeping to account for time worked, usually by using a timesheet

4 What does NOT determine Exempt or Non-Exempt Contract status Professionalism The number of hours worked Varied work schedule with night or weekends Being a supervisor Quality or value of work performed Educational degree

5 Key Provisions of the Final Rule Effective December 1, 2016 Updates the salary and compensation levels needed for employees to be exempt from overtime. Criteria to be exempt from overtime requirements: 1- Salary basis rather than an hourly basis 2- Minimum salary level; and 3- Standard duties test.

6 What Changed Salary test increased from $455 per week ($23,660 annual salary) to $913 per week ($47,476 annual salary). Future automatic updates to those thresholds will occur every three years, beginning on January 1, Duties test remains unchanged.

7 4 Possible Exemptions Executive Administrative Faculty/Learned and Creative Professional Computer

8 Executive Exemption Duties Test All 3 Criteria Required Managing a unit of the college Supervising at least two or more other fulltime employees or their equivalent; and Involved in hiring, firing, advancement, promotion or any other change of status of other employees.

9 Administrative Exemption Duties Test Both Criteria Required Performance of office or non-manual work directly related to the management or general business operations; and Exercise of discretion and independent judgment with respect to matters of significance.

10 Professional Exemption Duties Test for Teachers (Faculty) Teaching, tutoring, instructing or lecturing The salary and salary basis requirements do not apply to bona fide teachers.

11 Professional Exemption Duties Test for Creative Professionals Work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. Must be determined on a case-by-case basis.

12 Professional Exemption Duties Test for Learned Professionals Performance of work requiring advanced knowledge (intellectual in character); In a field of science or learning; and The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.

13 Computer Exemption Duties Test for Computer Employee Must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field Other requirements as well

14 SF Actions Additional College-wide meeting before VPs convey final recommendations Review of current duties in comparison to DOL guidelines. Review of current salaries in comparison to DOL guidelines. Discussions with division Vice Presidents and leadership teams. Final determinations of exemption classification for each position.

15 SF Impact 225 positions currently classified as exempt are under review (A&P and Career Service).

16 Timeline September-October 2016: review of positions and VP discussions. November 2016: Second college-wide meeting followed by communication of exemption outcomes to impacted employees November December 2016: conduct Time and Attendance training. December 1, 2016: exemption classification changes become effective.

17 Time and Attendance No changes are needed to current Time and Attendance policy. Will continue to use current Excel based timesheet until further notice. College is beginning to explore building its own electronic record-keeping system that can be integrated with existing ERP payroll and certifier processes.

18 Questions? Will be used to develop FAQ Write down questions on index cards available today Or to either Lela Frye or Patti Locascio