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 FOLLOW US ON: 10/25/2016
Topics Background Basic FLSA provisions Working Time Issues System-wide Pay Plan HR Work in Progress 10/25/2016 Human Resources | Page 2
Background System-wide Pay Plan Overtime Regulations U.S. Department of A&M System initiative Labor (DOL) initiative Effective Applies to most staff December Applies to all employees 1, 2016 employees Includes May change pay minimum pay to hourly rates 10/25/2016 Human Resources | Page 3
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 10/25/2016 Human Resources | Page 4 4
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 10/25/2016 Human Resources | Page 5
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 10/25/2016 Human Resources | Page 6
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 10/25/2016 Human Resources | Page 7
Salary Minimum for Exemption • $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 o they are exempt from overtime regardless of salary level. 10/25/2016 Human Resources | Page 8
Other Special Categories “Non - covered” • Student Resident Advisors and Hall Directors – reasonable agreement of working hours • Graduate Assistants Research 10/25/2016 Human Resources | Page 9
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 10/25/2016 Human Resources | Page 10
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. 10/25/2016 Human Resources | Page 11
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 10/25/2016 Human Resources | Page 12
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 10/25/2016 Human Resources | Page 13
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 10/25/2016 Human Resources | Page 14
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 10/25/2016 Human Resources | Page 15 15
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 10/25/2016 Human Resources | Page 16 16
Recordkeeping No federally-specified or required format Time clocks not required Rounding to the nearest 15 minutes Records retention 10/25/2016 Human Resources | Page 17 17
Hours Worked for Non-exempt Employees Risks of employees working “off the clock” 10/25/2016 Human Resources | Page 18 18
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? 10/25/2016 Human Resources | Page 19
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 10/25/2016 Human Resources | Page 20 20
Break Examples: Work or Not? 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 10/25/2016 Human Resources | Page 21
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 10/25/2016 Human Resources | Page 22 22
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/ 10/25/2016 Human Resources | Page 23 23
Travel time • Non-exempt employees • Daily commute • Same day travel • Overnight trips • Airport connections 10/25/2016 Human Resources | Page 24 24
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 10/25/2016 Human Resources | Page 25 25
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. 10/25/2016 Human Resources | Page 26 26
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 10/25/2016 Human Resources | Page 27 27
Training, lectures and meetings • Compensable unless: • Voluntary, AND • Outside working hours, AND • Not related to regular job, AND • No productive work is accomplished 10/25/2016 Human Resources | Page 28 28
Other issues Remote Working Devices and their use After hours? Required or not? Approved or not? 10/25/2016 Human Resources | Page 29 29
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 10/25/2016 Human Resources | Page 30
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