System-wide Pay Plan and Overtime Regulations Session for AABS - - PowerPoint PPT Presentation

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System-wide Pay Plan and Overtime Regulations – Session for AABS

Elizabeth Schwartz Director of Workforce Management eschwartz@tamu.edu 979.845.0357 employees.tamu.edu

10/25/2016

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Background Basic FLSA provisions Working Time Issues System-wide Pay Plan HR Work in Progress

Topics

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Background

Overtime Regulations System-wide Pay Plan

U.S. Department of Labor (DOL) initiative A&M System initiative Applies to all employees Applies to most staff employees May change pay to hourly Includes minimum pay rates

Effective December 1, 2016

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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

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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

Overtime Regulations: Exempt vs. Non-Exempt

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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

Overtime Regulations

Effective December 1, 2016

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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
• r business operations
• Primary duty includes exercise of discretion and independent

judgment on significant matters

• Requires advanced knowledge in a field of science or

learning

Exempt Job Duties

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• $913 per week/$3,956.33 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

• they are exempt from overtime regardless of

salary level.

Salary Minimum for Exemption

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“Non-covered”

• Student Resident Advisors and Hall

Directors – reasonable agreement of working hours

• Graduate Assistants Research

Other Special Categories

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Employees – approx. 1,100 Two categories of impacted employees;

• Those making below $47,476
• 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

Impact of Change to Non-Exempt at A&M

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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.

Titles Becoming Non-Exempt

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• This change is not about:
• Lack of trust
• Not being a “professional”
• Demotion or punishment
• This change is about:
• Complying with federal requirements
• Extending overtime protection to more

employees

Dealing with the Change

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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

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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

Managers and Supervisors

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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

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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

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Recordkeeping

No federally-specified or required format Time clocks not required Rounding to the nearest 15 minutes Records retention

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Hours Worked for Non-exempt Employees

Risks of employees working “off the clock”

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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?

How do I know if it counts as work?

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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
• ther breaks - the time may become non-compensable

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Eating at desk during lunch while answering work email 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

Break Examples: Work or Not?

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Lactation Breaks

• 1-year period following birth
• Compensable…unless
• Flex schedules
• Designated lactation spaces

http://rules-saps.tamu.edu/PDFs/31.99.99.M0.02.pdf

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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

http://employees.tamu.edu/benefits/leave/wellness-release- time/

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Travel time

• Non-exempt employees
• Daily commute
• Same day travel
• Overnight trips
• Airport connections

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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

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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

• n Sunday, passenger will get no travel time at all.

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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

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Training, lectures and meetings

• Compensable unless:
• Voluntary, AND
• Outside working hours, AND
• Not related to regular job, AND
• No productive work is accomplished

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Other issues

Remote Working Devices and their use After hours? Required or not? Approved

• r not?

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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

Supervisor Responsibility

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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

Employee Responsibility

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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

Guidance at University Level

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• HR resource page with FAQs:

http://employees.tamu.edu/compensation/flsa/

• 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

Resources and Training

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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

System-wide Pay Plan - Background

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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

System-wide Pay Plan - Outcome

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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

System-wide Pay Plan - Impact

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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

System-wide Pay Plan - Impact

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HR/Payroll Contacts

• Transition period within PATH
• Implementation of new titles and change to

biweekly will be automated

• EPA blackout period Nov 21-30 in prep for load
• All positions will have a 12/1/16 iteration
• Wait to enter EPAs with dates after 12/1
• Extra steps to do retroactive funding source changes
• Only one title code for all source lines starting 12/1
• Help HR encourage patience with information and

communications

System-wide Pay Plan - Impact

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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

• vertime-eligible for positions below $47,476 or
• therwise non-exempt

HR - Work in Progress

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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

HR - Work in Progress (cont.)

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Q&A

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Contact Information

Human Resources Compensation 979-845-4170 (main line) payplan@tamu.edu Elizabeth Schwartz Director of Workforce Management eschwartz@tamu.edu 979.845.0357 employees.tamu.edu