CAMP 2 0 1 6 GENERAL SESSION: GOTTA HAVE HR WERE HERE FOR YOU!! A - PowerPoint PPT Presentation

WELCOME TO SUMMER CAMP 2 0 1 6

GENERAL SESSION: GOTTA HAVE HR – WE’RE HERE FOR YOU!! A C A & F L S A

AGENDA  A Look-back at ACA Reporting 2015  Changes in FLSA -- what it means for our people and our budgets

A LOOK-BACK AT ACA REPORTING FOR 2015 Let’s just say . . . it was messy . . .

ACA LOOK-BACK  We got it done  It wasn’t pretty  We have a “pass” this first year  Next year there will be more scrutiny  Questions from the Fed likely  Accuracy of Hours and Pay as shown in Who’s Where are critical for success  Each location will be responsible if penalties are due to inaccurate data

ACA LOOK-BACK Who’s Where tip for 2016:  Remember to check Auto-calculate on the General Information screen for all Exempt employees  Report actual hours worked for Non-exempt employees each pay period  Instructions coming from Patty on how to check for employees’ hours not reporting correctly  Kudos to those who catch their errors early and call for assistance!  Better now than December

ACA LOOK-BACK • And we all know who to thank for the ACA!

FLSA CHANGES: WHAT WERE THEY THINKING? FAIRNESS maybe? JUSTICE?  The Church (as many other employers) may have some serious catching up to do  Look at the facts and make a plan!

FLSA CHANGES Highlights of the DOL’s Final Rule, effective December 1, 2016  Standard salary level for Exempt employees increases from a minimum of $23,360 annually to $47,476 -- $913 per week  Highly compensated level increases to $134,004  These levels will automatically increase every 3 years  There are no changes to the current duties for Exempt employees (See DOL Fact Sheet #17A)

FLSA CHANGES Suggestions, Best Practices, Thoughts Gather your employee data. Develop a list of all your  salaried employees from highest to lowest. Analyze who is above the $47,476 and who is below. Identify positions that need to be reclassified.  For those that are below, analyze what it would cost to push  their salary over the threshold. Look for justification as you compare duties, responsibilities and equality to other employees. Determine if there is a way to decipher how many hours  these salaried employees work per week and how much overtime they traditionally work (over 40 hours).

FLSA CHANGES Suggestions, Best Practices, Thoughts Educate those that need to know. Pastors, Boards (if applicable), finance  council, Principals, payroll administrators, key management personnel. Develop options for compliance.  Develop talking points for face-to-face individual or group meetings with all  those affected (salaried staff). Address time, record-keeping systems. Is your parish ready for electronic  time system? Revise job descriptions  If you need advice, contact the Archdiocese HR Director or legal counsel if  you need a legal opinion

FLSA CHANGES Consider these options for the positions that do qualify as Exempt  No change if currently making at or above $47,476  Make the position non-exempt. Determine number of hours currently being worked in the job annually and divide the annual salary by the number of hours to determine an hourly rate. Pay time and a half for any hours worked over 40/week  If the hours estimate is accurate, this will increase your budget only by the half-time rate for hours over 40/week

FLSA CHANGES Things you may learn:  The person is necessarily working a lot of hours for an embarrassingly low rate  The person is working many more hours than necessary and should be managed more closely Other options if you can afford them:  Raise the exempt person’s salary to the minimum  Divide the annual salary by the typical number of planned annual hours and pay time and a half for hours over 40.

FLSA CHANGES Implications in carrying out these options 1. Employees have less freedom or flexibility to carry out their ministry. It’s not in our Catholic DNA to think this way. Many of us chose this work to focus on mission, not to worry about the time and hard work it takes to accomplish it. 2. Employees feel they are now being closely monitored and that they are being demoted. 3. Increased workforce costs 4. It can create misperceptions and stir up negative feelings from others when certain employees receive an increase in pay to maintain their exempt status.

FLSA CHANGES Caution: Here is a common thought that is ILLEGAL!  “I will have a policy that states that no overtime is permitted. Furthermore, if anyone works overtime, they will not be paid overtime because our policy forbids it”  This is ILLEGAL!  If an employee works overtime, authorized or not, policy or no policy, or employer banning the working of overtime, IF THEY WORK OVERTIME, YOU MUST UNDER THE ACT, PAY THEM OVERTIME.  Q: So how do I stop the overtime? A: Discipline them. Formal Written Warning

FLSA CHANGES Sample Overtime Policy You can have a policy that says: In general, overtime is discouraged, though sometimes necessary. All overtime must be assigned and approved by the supervisor prior to an employee working the overtime. For non-exempt employees, all hours worked over 40 hours per week will be paid at the rate of one and one-half times the regular rate of pay. Un-worked holiday, sick time, vacation time or other leave time is not included when calculating overtime.

FLSA CHANGES Things to think about … 1. Do you currently have salaried employees, that will soon be hourly, who check their emails, voicemails, and take work calls after hours and weekends? Do they work remotely from home after the normal workday or on the weekends? Do they sometimes work through their unpaid lunch hour?  Department of Labor News flash: This is compensable time and they should record this time on their time sheets or time cards.  Currently, the FLSA does say that “ deminimis ” work (typically five minutes or less) performed beyond the 40-hour workweek by non- exempt employees is not compensable. However, the DOL has this on their agenda to re-examine.

FLSA CHANGES Things to think about ….. 2. Expect and know how to respond to comments from these employees that say: “ Oh, I’m volunteering my time, you don’t need to pay me for the project I worked on after hours. It’s a ministry, it’s for the Church.” Department of Labor News Flash: This is compensable time . This statement does not hold up. We are obligated to pay; now or later when this disgruntled employee files a claim with the DOL with meticulous records of unpaid hours. 3. Should we rethink who will have access to VPN and remote access? Are there policies that need to be written or rewritten? i.e. Off-the Clock Policy

FLSA CHANGES Common Question: Are teachers still exempt from FLSA salary minimums? Teachers and academic administrative employees (e.g., counselors, assistant principals, principals, curriculum specialists) will remain exempted from the salary level test (29 C.F.R. §541.303).

FLSA CHANGES Special Employment Situations  Coaches  Youth Ministers  Travel  Evening and Weekend Work  Required Attendance at Events  Working from Home – even emails and phone calls

FLSA CHANGES These numbers reflect federal court cases only. 2016-2017 estimates are expected to be significantly higher after the new rule takes effect.

FLSA CHANGES Department of Labor – Personal Criminal Liability  Department of Justice (DOJ) - “ Individual Accountability for Corporate Wrongdoing ” Criminal penalties under the FLSA are:  A fine of up to $10,000 on the first conviction PER VIOLATION  A fine of up to $10,000, or a term of imprisonment of up to six months, or both , on all convictions after the first conviction

FLSA CHANGES And we all know who to thank for the new FLSA changes!

GENERAL SESSION: GOTTA HAVE RISK MANAGEMENT C A T H O L I C M U T U A L A N D WO R K E R ’ S C O M P

AGENDA • What is Self-Insurance • How is the premium determined • What is covered • How do I file a claim

SELF INSURANCE • Self-funded insurance, self-insurance , or, more colloquially, self-funding is a type of insurance coverage that is accomplished without the risk transfer by which traditional insurance is defined. • For the Archdiocese that means that the Archdiocese takes on the risk that the insurance company would in a fully funded plan. Premiums are charged and claims are paid out of the premiums. Any excess claims are paid out of the insurance reserve or in the worst case out of the Archdiocese’s operating funds.

SELF INSURANCE • In order to minimize the risk, the structure becomes more complicated. The Archdiocese participates in the Catholic Umbrella Pool which spreads the risk on excess liability among participating dioceses.

PREMIUMS • Property • The property coverage is the average rate for the Archdiocese * the property value. • The rate is determined by claims experience, so the fewer the claims $, the lower the rate. • The property value is determined periodically through the appraisal process and subsequent years are increased by an inflation factor.

PREMIUMS • Liability • The liability premium is determined by Catholic Mutual for the diocese as a whole • The liability premium is spread across entities based on property values