fair labor standards act changes november 2016

F a i r L a b o r S t a n d a r d s A c t C h a n g e sN o v e m b e r 2 0 1 6

Agenda• FLSA overview• What does NOT change• What IS changing• Time Reporting• Questions

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• Federal law – sets minimum wage – criteria for overtime eligibility– applies to all employers

• Last changed in 2004

• Changes proposed in 2015, final changes announced May 2016

Fair Labor Standards Act (FLSA)

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Terminology What does it mean?

Exempt NOT eligible for overtime pay

Non-exempt Eligible for overtime pay

Salaried non-exempt(for example, Communications Coordinator)

Pay provided on a set salary basis, overtime paid in addition to the salary.

Professional-level positions that fall under the $47,476 salary threshold

Hourly non-exempt(for example, Office Manager)

Pay provided on an hourly basis. Pay may fluctuate by pay period, including overtime.

Positions that do not meet the criteria for professional exemption and must be paid at least minimum wage.

Term Definition

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Fair Labor Standards Act Professional Exemption from overtime (Dec.1, 2016)

Exempt (Not Eligible for Overtime

Pay)

Paid on a salaried basis

Duties meet Professional

level testSalary is at or

above $47,476 or $913/week

Automatic updates to Salary every three years

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Urbana ImpactAcademic Professionals 823

Currently Exempt Civil Service 157

Research Associates 13

Postdoctoral Research Associates 345

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• You continue to have Professional status• Your status as an Academic employee does not change

(no conversion to Civil Service)• You remain salaried• You do not have to “Clock In and Clock Out”• You retain some flexibility• You can work more than regular hours [will be paid

overtime for hours beyond 40 (academic) or 7.5/37.5 (civil service)]

• Your vacation and sick leave accruals do not change

Facts

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What has not changed for employees now classified as Salaried Non-exempt?

Academic Civil Service

Current salaryPaid 16th of month

Current salaryPaid biweekly

Notice rights Seniority

TitleStatus as a Professional Employee

ClassificationStatus as a Professional Employee

Job duties Job duties

Vacation/Sick Leave accruals Vacation/Sick Leave accruals (current employees)

Current AVSL reporting Biweekly leave reporting

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What is changing now that you are Salaried Non-exempt?

Required to submit a timesheet every 2 weeksRecording all hours worked, including overtimeRecording leave time used

Leave reported in either full day or 1-hour increments

Overtime must be authorized. Units set guidelines for authorization.

Overtime reported in 15-minute increments

Overtime must be paid at 1 ½ times the hourly equivalent.

No longer required to report time via Positive Time Reporting

Need for more awareness of your “out of office” actions – email, document review, etc.

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Time Reporting Guidelines

• Must be authorized• Operational guidelines set by Unit

Overtime Authorization

• 15 minute increments• <7 minutes not reported • Rounding schedule

OT Reporting

• Full day or 1-hour increments• No rounding

Leave Reporting

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Minutes Worked Time Reporting Minutes

Time Reporting Hours

0 -7 0 0.00

8-22 15 0.25

23-37 30 0.50

38-52 45 0.75

53-60 60 1.00

Salaried Non-exempt Time ReportingRounding Schedule

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• Unit determines method to collect time reports– Physical timesheet submitted to supervisor

• Entered into Banner by a unit staff member

– Web Time entry using the Employee Self-Service application

• Supervisor approves in electronic system which feeds information to Banner

– Questions regarding your time-entry method should be directed to your immediate supervisor.

How will time be reported?

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– Time will be reported on a separate time reporting job

– Time will be reported on a biweekly basis, required for ALL biweekly pay periods, even if no overtime or leave hours incurred.

– “Title” of tracking job is FLSA TIME REPORTING

– Tracks time worked and facilitates payment of any overtime worked

– Tracks leave usage but does NOT adjust leave balances

Time Reporting for Academic Employees

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Reporting Category When to Use It

FLSA-Work Hours-Tracking Only (OPV)

• Regular (non-overtime) time worked, rounded to the nearest 15 minutes

FLSA-Leave Hours-Tracking Only (OPU)

• Any type of paid leave: vacation, sick leave, holidays, bereavement, jury duty, etc.

• Multiple types of leave in one day reported together

• Reported in full days or whole hour increments

FLSA-Time & Half Overtime (OPS)

• Time beyond 40 hours in pay status per week

• Rounded to the nearest 15 minutes

FLSA-PT Add’l Work Hours Paid (OPT)

• For part-time employees only: in addition to the FLSA-Work Hours-Tracking Only and FLSA-Leave Hours-Tracking Only

• Regular (non-overtime) time worked• Reports time beyond usual part-time schedule


Academic Employee Time Reporting Codes

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– Time will be reported on your “regular” job(s)• You already report exception time

– Time will continue to be reported on a biweekly basis, required even if no overtime or leave usage

– Tracks time worked and facilitates payment of any overtime worked

– Tracks leave usage and adjusts leave balances

Time Reporting for Civil Service Employees

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Reporting Category When to Use ItFLSA-Work Hours-Tracking Only (OPV)

• Regular (non-overtime) time worked, rounded to the nearest 15 minutes

Leave • Use the same types of paid leave you do now (vacation, sick, holidays, bereavement, jury duty, etc.)

• Leave reported by individual leave type

• Reported in whole hour or whole day (7.5-hour) increments

Time & Half Overtime (OVR)

• Time beyond 37.5 hours in pay status per week, or 7.5 hours per day rounded to the nearest 15 minutes

FLSA-PT Add’l Work Hours Paid (OP1)

• For part-time employees only: in addition to the FLSA-Work Hours-Tracking Only and any leave time

• Regular (non-overtime) time worked • Reports time worked beyond usual part-time schedule


Civil Service Employee Time Reporting Codes

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• Comp time – what is it?– University of Illinois is not offering comp time for Salaried Non-Exempt

employees

• Flex time– Ability to flex schedule within the work week to accommodate the needs of

the operation or the employee

• Flex Schedule Expectations– Discussed in advance between supervisor and employee– Expect flex arrangements to be reasonable and generally mutual

What about Comp Time?

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Salaried Non-exempt Employee Responsibilities

Ensure timesheet submitted every two

weeks

Follow unit guidelines for pre-authorization of

overtime

Be sure to report all hours worked, all leave

used, all overtime

Communicate with Supervisor re: work

expectations

Academic Employees: Continue AVSL

reporting as currently required

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Recap of Changes for EmployeesAcademic Civil Service

Eligible for overtime pay at 1.5 times hourly rate when hours more than 40 hours/week.

Eligible for overtime pay at 1.5 times hourly rate when hours more than 7.5 hours/day or 37.5 hours/week.

OT hours will be recorded against an academic hourly job (biweekly) and paid biweekly. Must submit a timesheet every biweekly pay period.

Continue to submit biweekly timesheet in the manner in which you do now, unless otherwise instructed by your unit.

No longer have to do Positive Time Reporting.

No longer have to do Positive Time Reporting.

No longer report leave in half day increments; leave reporting in full day or1 hour increments for time used less than a full day.

No longer report leave in half day increments; leave reporting in full day or 1 hour increments for time used less than a full day.

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• Academic Employees

How the overtime pay will affect your paycheck

Paycheck Effect

Regular monthly paycheck (16th of month)

NoneSURS, Health, Dental, Life, etc. continue with no change in premium or coverage

Biweekly paycheck (paid only when overtime is due)

Additional SURS contributionsAdditional 403(b) or 457 contributions IF your chosen deduction election is a percentage rate, rather than a flat dollar amount

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• Civil Service Employees

How the overtime pay will affect your paycheck

Paycheck Effect

Regular biweekly paycheck (current pay schedule)

Health, Dental, Life, etc. continue with no change in premium or coverage

Additional SURS contributions when overtime is paid

Additional 403(b) or 457 contributions IF your chosen deduction election is a percentage rate, rather than a flat dollar amount

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What’s Next

Monthly Oct. 16 – Nov. 15 pay period for academic employees

No action needed by employees

Nov 18 Deadline for Positive Time Reporting

Make sure you have entered all of your time in Positive Time Reporting system

Biweekly Nov. 6 – Nov. 19 pay period for civil service employees

Regular exception only time reporting by employees

Now – Nov. 20 Confirm time reporting process; consult your unitConfirm access if using Web Time Entry

Nov. 20 Begin recording your time

Dec. 3 – Dec. 5 Submit your timesheet

Dec. 14 First Biweekly pay reflecting overtime, if worked

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Academic Employee Atypical Day

You don’t “clock in” or out, but report the total for the day.

Your timesheet must reflect ALL time worked in each day. On the timesheet, this example day is reported:

FLSA-Work Hours-Tracking Only 6.75FLSA-Leave Hours-Tracking Only 1.00Daily total hours 7.75

Some days may reflect less than 8 hours as in this example, and there is no negative impact to your pay.

A typical full-time workweek should reflect a total of 40 hours.

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Full-Time Academic Time Reporting Week 1

Sun. Mon. Tues. Wed. Thurs. Fri. Sat.

FLSA–Work Hours-Tracking Only (OPV) 6.75 7.75 11.00 5.50

FLSA–Leave Hours-Tracking Only (OPU) 1.00 8.00

FLSA–Time & Half Overtime (OPS) 2.50

Daily total: 7.75 7.75 8.00 11.00 8.00

Running weekly total: 0.00 7.75 15.50 23.50 34.50 42.50 42.50

Monday: Our example day from the previous page.

Wednesday: Any type of leave reported the same way.

Note: Current AVSL reporting process remains the same.

Friday: A typical 8-hour day results in overtime from additional hours earlier in the week.

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Full-time Academic Time Reporting Week 2

Sun. Mon. Tues. Wed. Thurs. Fri. Sat.FLSA–Work Hours-Tracking Only (OPV) 6.75 7.75 6.50

FLSA–Leave Hours-Tracking Only (OPU) 1.00 8.00 8.00

FLSA–Time & Half Overtime (OPS)

Daily total: 7.75 7.75 6.50 8.00 8.00


Thursday/Friday: This is how the week of Thanksgiving might look.

Paid holidays are reported as 8 hours of leave even though you don’t use leave benefits for them.

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You don’t “clock in” or out, but report the total for the day.

Your timesheet must reflect ALL time worked in each day. On the timesheet, this example day is reported:

FLSA-Work Hours-Tracking Only 6.25Sick Leave 1.00Daily total hours 7.25

Some days may reflect less than 7.5 hours as in this example, and there is no negative impact to your pay. A typical full-time workweek should reflect a total of 37.5 hours.

Civil Service Employee Reporting a Day

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Full-time Civil Service Time Reporting Week 1

Sun. Mon. Tues. Wed. Thurs. Fri. Sat.FLSA–Work Hours-Tracking Only (OPV) 7.25 7.50 7.00 6.50

Vacation (VAC) 7.50

Sick (SNC) 1.00

Time & Half Overtime (OVR) 0.25 0.50

Daily total: 7.25 7.75 7.50 7.00 8.00


Tuesday: Overtime accrued after 7.5 hours in a single day.

Wednesday: Any type of leave is reported the same way you do now, but in whole days or whole hours. A whole day is still 7.5 hours.

Friday: 7.5 hours in a day includes paid leave time reported.

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Full-time Civil Service Time Reporting Week 2

Sun. Mon. Tues. Wed. Thurs. Fri. Sat.FLSA–Work Hours-Tracking Only (OPV) 7.25 7.50

Vacation (VAC) 7.50

Sick (SNC)

Holiday (HOL) 7.50 7.50

FLSA–Time & Half Overtime (OVR)

Daily total: 7.25 7.50 7.50 7.50 7.50


Wednesday: Example showing two kinds of leave in the same week, if you took a vacation day the day before Thanksgiving.

Thursday/Friday: This is how the week of Thanksgiving might look.

Paid holidays are reported as 7.5 hours of leave even though you don't use accrued leave benefits for them.

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Part-time Academic Employee Time Reporting Week 1


FLSA–Work Hours-Tracking Only (OPV) 7.00 2.75 7.00 10.25

FLSA–Leave Hours-Tracking Only (OPU) 5.00

FLSA–PT Add’l Work Hours Paid (OPT) 2.00 6.00

FLSA–Time & Half Overtime (OPS) 2.00

Daily total: 7.00 7.75 7.00 12.25 8.00


Thursday: The week passes 32 hours here, but isn't past 40.

The hours between 32 and 40 are in the PT Add'l Work Hours Paid line.

Friday: Since this week goes beyond 40 hours, it also results in time-and-a-half overtime.

Employee has an 80% FTE (32 hours per week) and works Monday-Friday

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Part-time Civil Service Time Reporting Week 1


FLSA–Work Hours-Tracking Only (OPV) 7.00 2.50 7.00 7.50 1.00

Vacation (VAC) 5.00

Sick (SNC)

FLSA–PT Add'l Work Hours Paid (OP1) 6.00

FLSA–Time & Half Overtime (OVR) 0.25 2.00

Daily total: 7.00 7.75 7.00 9.50 7.00


Employee has an 80% FTE (30 hours per week) and works Monday-Friday

Tuesday, Thursday: The 7.5-hour daily overtime limit still applies to part-time employees.

Thursday: An 80% FTE equates to 30 straight-time hours per week. Only Work Hours-

Tracking Only, + leave taken count toward those 30 hours here.

Friday: Once the Work Hours-

Tracking Only + leave taken equal the 80% FTE (30 straight-time hours), additional non-overtime goes in the PT Add’lWork Hours.

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• https://go.Illinois.edu/flsa• http://www.ahr.illinois.edu/• http://shr.illinois.edu/empresources/home.ht

ml• Email: [email protected]

More Information

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https://go.illinois.edu/flsa

http://www.ahr.illinois.edu/

http://shr.illinois.edu/empresources/home.html

mailto:[email protected]

http:/go.illinois.edu/flsa

[email protected]

Deb Stone, Director, Academic Human Resources

Robbie Witt, Deputy Director, Staff Human Resources

Stephanie Haas, Associate Director, Academic Human Resources

Nicole Peck, Human Resources Coordinator

Phil Stanton, Human Resources Coordinator

Questions?

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fair labor standards act changes november 2016

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