System-wide Pay Plan and Overtime Regulations Session for AABS
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1 System-wide Pay Plan and Overtime Regulations Session for AABS Elizabeth Schwartz Director of Workforce Management employees.tamu.edu FOLLOW US ON:
2 Topics Background Basic FLSA provisions Working Time Issues System-wide Pay Plan HR Work in Progress Human Resources Page 2
3 Background Overtime Regulations System-wide Pay Plan U.S. Department of Labor (DOL) initiative Applies to all employees May change pay to hourly Effective December 1, 2016 A&M System initiative Applies to most staff employees Includes minimum pay rates Human Resources Page 3
4 Fair Labor Standards Act (FLSA) Federal law that covers: Minimum wage Child labor Hours worked Record keeping Overtime and Comp Time Federal regulations based on law provide additional guidance 4 Human Resources Page 4
5 Overtime Regulations: Exempt vs. Non-Exempt Exempt: Paid a fixed salary on a monthly schedule No pay or comp time for extra work hours Non-exempt: Paid an hourly rate on a biweekly schedule Earn overtime pay or compensatory time for hours worked over 40 in a workweek Human Resources Page 5
6 Overtime Regulations Effective December 1, 2016 Exemption from overtime is based on: Job duties tests executive, administrative, professional per federal guidelines Salary basis fixed amount Salary minimum threshold increased from $455 per week to $913 per week Human Resources Page 6
7 Exempt Job Duties Examples of position information and job duties that meet the criteria: Management of a department or unit Authority to hire/fire Office or non-manual work directly related to management or business operations Primary duty includes exercise of discretion and independent judgment on significant matters Requires advanced knowledge in a field of science or learning Human Resources Page 7
8 Salary Minimum for Exemption $913 per week/$3, per month or $47,476 per year Amount applies whether employee is part-time or full-time Minimum does not apply to teachers (including faculty titles and graduate teaching assistants), lawyers, doctors and veterinarians o they are exempt from overtime regardless of salary level. Human Resources Page 8
9 Other Special Categories Non-covered Student Resident Advisors and Hall Directors reasonable agreement of working hours Graduate Assistants Research Human Resources Page 9
10 Impact of Change to Non-Exempt at A&M Employees approx. 1,100 Two categories of impacted employees; o Those making below $47,476 o Those in titles becoming non-exempt Received notice of the change from HR following department head notification Over 85% of employees notified are making below the salary threshold Human Resources Page 10
11 Titles Becoming Non-Exempt Initial review and recommendation by the Pay Plan Administrator, using the DOL exemption criteria, opinion letters and legal cases; System Member HR offices input and feedback; Review of assigned pay grades as well as peer institutions exemption status of certain roles; In cases where there was significant disagreement, some alternatives were discussed in terms of adding titles as options; The primary consideration when there was not agreement was risk-mitigation and consistency across System Members. Human Resources Page 11
12 Dealing with the Change This change is not about: o Lack of trust o Not being a professional o Demotion or punishment This change is about: o Complying with federal requirements o Extending overtime protection to more employees Human Resources Page 12
13 Employees Understand that they are valued employees critical to the mission of Texas A&M University Recognize the importance of accurately recording work hours Realize that they may need to adjust schedules and work differently Human Resources Page 13
14 Managers and Supervisors Review organization of work and scheduling Oversee employee work and leave hours Balance financial stewardship with the need to get work done Understand the importance of their role in leading the way through change Human Resources Page 14
15 Understanding what counts as work: Why do you need to know this? Misconceptions Actions occur mainly at the department level Complexity When to seek guidance YOU may be the first to know about a DoL inspection/audit 15 Human Resources Page 15
16 Hours Worked - Basics Time spent predominantly for the benefit of the employer or business Employer sets working hours, including adjustments An employee may not volunteer to do their job Overtime must be approved in advance All hours worked must be compensated 16 Human Resources Page 16
17 Recordkeeping No federally-specified or required format Time clocks not required Rounding to the nearest 15 minutes Records retention 17 Human Resources Page 17
18 Hours Worked for Non-exempt Employees Risks of employees working off the clock 18 Human Resources Page 18
19 How do I know if it counts as work? Apply basic provisions: Was this time spent primarily for my employer s benefit? Was the time minimal (approximately 5 minutes or less)? Does the time meet one of the break provisions? Human Resources Page 19
20 Breaks Meal breaks are not mandatory, but if given, must meet all three conditions or it is compensable: Minimum of 30 minutes, AND Relieved of all duties, AND Free to leave work location Rest breaks are not mandatory, but if given, should meet the following: 5-20 minutes Compensable time Rest breaks are not to be combined or added to meal or other breaks - the time may become non-compensable 20 Human Resources Page 20
21 Break Examples: Work or Not? Eating at desk during lunch while answering work and phone Taking a 10-minute personal phone call during work hours. What if 30 minutes? Getting a cup of coffee Chatting with co-workers about weekend plans or the political debates Staring into space Facebook, Instagram, Twitter Human Resources Page 21
22 Lactation Breaks 1-year period following birth Compensable unless Flex schedules Designated lactation spaces 22 Human Resources Page 22
23 Wellness Release Time 30-minutes, 3 times per week break to participate in wellness activities Paid time, does not have to be made up Cannot accrue, bank or carry over Should be taken at start/end of work day or in conjunction with lunch break but not in conjunction with rest breaks Cannot be used to reduce paid vacation or sick leave Note: injuries not covered under Worker s Compensation 23 Human Resources Page 23
24 Travel time Non-exempt employees Daily commute Same day travel Overnight trips Airport connections 24 Human Resources Page 24
25 Travel time Example: Same day travel to another city Employee travels to Houston and back for a one-day seminar. Normal commute is 15 minutes. 2 hours to the venue, arriving at 7:30 am Seminar 8 am 4:30 pm with a 30-minute working lunch 2 hours to BCS, arriving at 6:30 pm Summary: 13 hours, less 30 minutes of commuting time 25 Human Resources Page 25
26 Travel time Example: Overnight travel Normal working hours 8am 5pm Departs Sunday at 3pm, arrives Austin 5pm Conference Monday and Tuesday, 8am 5pm with 1- hour lunch (individual arrangements) Departs Austin 5pm Tuesday, arrives home 7pm Driver gets 4 hours total for travel. Non-exempt passenger gets 2 hours. If outbound trip starts at 5pm on Sunday, passenger will get no travel time at all. 26 Human Resources Page 26
27 Travel time Consider a pre-trip planning session to identify what hours will be considered work and which hours will not. Consult with HR as required Ensure any anticipated overtime has been discussed by the supervisor and employee(s) with regard to adjustment of schedules, accrual of comp time or payment 27 Human Resources Page 27
28 Training, lectures and meetings Compensable unless: Voluntary, AND Outside working hours, AND Not related to regular job, AND No productive work is accomplished 28 Human Resources Page 28
29 Other issues Remote Working Devices and their use After hours? Required or not? Approved or not? 29 Human Resources Page 29
30 Supervisor Responsibility Be aware and communicate regularly with employees Understand your division s or department s approach to hours worked over 40 Adjust schedules during the work week if needed to avoid the accrual of overtime Must still count unauthorized work as work becomes a disciplinary issue Human Resources Page 30
31 Employee Responsibility Don t volunteer to do your job Be aware and communicate regularly with your supervisor Understand the basics and seek guidance if it gets complicated Human Resources Page 31
32 Guidance at University Level Comp time statements upon hire and annually given to employees Rules/SAPs Overtime SAP in development for 12/1 HR available to review any departmental policies as well as specific unique situations Human Resources Page 32
33 Resources and Training HR resource page with FAQs: Online training and tutorials: Comp time course and timesheet tutorials for employees and supervisors in TrainTraq and TimeTraq Additional sessions focused on working time: Working time details include travel time and other specific challenges Human Resources Page 33
34 System-wide Pay Plan - Background Compensation audit recommendations Consultant was chosen to review over 9,000 job titles across the A&M System Objective was to create single, system-wide pay plan for staff positions, with some executive-level and other titles excluded. Final plans presented to Board of Regents in September 2015 Implementation scheduled for December 1, 2016 Human Resources Page 34
35 System-wide Pay Plan - Outcome Standardized titles and pay structures across the A&M System for staff titles Staff positions mapped to new titles based on current classifications Some staff employees received a pay increase to new minimums, effective September 1, through budget process Title changes are effective December 1 through an automated process Human Resources Page 35
36 System-wide Pay Plan - Impact Employees Some received a pay plan adjustment increase on 9/1 All will have a change in title code (four-digit number)on 12/1 Some will have a change in title description on 12/1 Communications about title change and more information coming in October Human Resources Page 36
37 System-wide Pay Plan - Impact Managers and Supervisors Changes in staff titles and pay administration Consider holding off on major reorganization and titling changes until more information is available for such decisions Impact on currently posted positions More structure for many titles, flexibility in pay ranges and more guidance Human Resources Page 37
38 System-wide Pay Plan - Impact HR/Payroll Contacts Transition period within PATH Implementation of new titles and change to biweekly will be automated o EPA blackout period Nov in prep for load o All positions will have a 12/1/16 iteration o Wait to enter EPAs with dates after 12/1 o Extra steps to do retroactive funding source changes o Only one title code for all source lines starting 12/1 Help HR encourage patience with information and communications Human Resources Page 38
39 HR - Work in Progress Implementation Plans: 1. Additional communications coming from HR to departments and employees 2. Communications will include new titles 3. Additional information being added to the HR website 4. Transition wording being added to open postings about December 1 change to hourly and overtime-eligible for positions below $47,476 or otherwise non-exempt Human Resources Page 39
40 HR - Work in Progress (cont.) 5. Proposed revisions to University Rules and SAPs to accommodate new pay structures and delegation of authority 6. Other guidance to help managers and employees through the transition Human Resources Page 40
41 Q&A Human Resources Page 41
42 Contact Information Human Resources Compensation (main line) Elizabeth Schwartz Director of Workforce Management employees.tamu.edu Human Resources Page 42
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