Fair Labor Standards Act Changes
November 2016
Agenda
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FLSA overview
What does NOT change
What IS changing
Time Reporting
Questions
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Fair Labor Standards Act (FLSA)
• 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
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Term Definition
Terminology
What does it mean?
Exempt
NOT eligible for overtime pay
Non-exempt
Eligible for overtime pay
Salaried non-exempt
Pay provided on a set salary basis, overtime paid in addition
to the salary.
(for example, Communications
Coordinator)
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.
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Fair Labor Standards Act
Professional Exemption from overtime (Dec.1, 2016)
Duties meet
Professional
level test
Paid on a
salaried basis
Salary is at or
above
$47,476 or
$913/week
Exempt
(Not Eligible
for Overtime
Pay)
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Automatic updates to
Salary every three years
Urbana Impact
Academic Professionals
823
Currently Exempt Civil Service
157
Research Associates
13
Postdoctoral Research Associates 345
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Facts
• 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
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What has not changed for employees now classified
as Salaried Non-exempt?
Academic
Civil Service
Current salary
Paid 16th of month
Current salary
Paid biweekly
Notice rights
Seniority
Title
Status as a Professional Employee
Classification
Status 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 weeks
Recording all hours worked, including overtime
Recording 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
Overtime
Authorization
• Must be authorized
• Operational guidelines set by Unit
OT Reporting
• 15 minute increments
• <7 minutes not reported
• Rounding schedule
Leave
Reporting
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• Full day or 1-hour increments
• No rounding
Salaried Non-exempt Time Reporting
Rounding Schedule
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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
How will time be reported?
• 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.
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Time Reporting for Academic Employees
– 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
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Academic Employee Time Reporting Codes
Reporting Category
When to Use It
FLSA-Work Hours-Tracking Only
(OPV)
FLSA-Leave Hours-Tracking Only
(OPU)
•
Regular (non-overtime) time worked, rounded to the nearest
15 minutes
•
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
•
Rounded to the nearest 15 minutes
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Time Reporting for Civil Service Employees
– 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
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Civil Service Employee Time Reporting Codes
Reporting Category
FLSA-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
•
Rounded to the nearest 15 minutes
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When to Use It
What about Comp Time?
• 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
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Salaried Non-exempt Employee Responsibilities
Communicate with
Supervisor re: work
expectations
Follow unit guidelines
for pre-authorization of
overtime
Ensure timesheet
submitted every two
weeks
Be sure to report all
hours worked, all leave
used, all overtime
Academic Employees:
Continue AVSL
reporting as currently
required
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Recap of Changes for Employees
Academic
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 or
1 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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How the overtime pay will affect your paycheck
• Academic Employees
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Paycheck
Effect
Regular monthly paycheck
(16th of month)
None
SURS, Health, Dental, Life, etc.
continue with no change in
premium or coverage
Biweekly paycheck
(paid only when overtime is
due)
Additional SURS contributions
Additional 403(b) or 457
contributions IF your chosen
deduction election is a
percentage rate, rather than a
flat dollar amount
How the overtime pay will affect your paycheck
• Civil Service Employees
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 unit
Confirm 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
FLSA-Leave Hours-Tracking Only
Daily total hours
6.75
1.00
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.
FLSA–Work Hours-Tracking Only (OPV)
6.75
FLSA–Leave Hours-Tracking Only (OPU)
1.00
Wed.
Thurs.
7.75
Fri.
11.00
2.50
Daily total:
0.00
7.75
7.75
8.00
11.00
8.00
7.75
15.50
23.50
34.50
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.
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5.50
8.00
FLSA–Time & Half Overtime (OPS)
Running weekly total:
Sat.
Friday: A typical 8hour day results in
overtime from
additional hours
earlier in the week.
42.50
Full-time Academic Time Reporting Week 2
Sun.
Mon.
Tues.
FLSA–Work Hours-Tracking Only
(OPV)
6.75
FLSA–Leave Hours-Tracking Only
(OPU)
1.00
Wed.
7.75
Thurs.
Fri.
Sat.
6.50
8.00
8.00
FLSA–Time & Half Overtime (OPS)
Daily total:
Running weekly total:
0.00
7.75
7.75
6.50
8.00
8.00
7.75
15.50
22.00
30.00
38.00
38.00
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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Civil Service Employee Reporting a 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 6.25
Sick Leave
1.00
Daily 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.
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Full-time Civil Service Time Reporting Week 1
Sun.
Mon.
FLSA–Work Hours-Tracking Only
(OPV)
Tues.
7.25
Wed.
Thurs.
7.50
Vacation (VAC)
Fri.
7.00
6.50
7.50
Sick (SNC)
1.00
Time & Half Overtime (OVR)
0.25
Daily total:
Running weekly total:
0.00
0.50
7.25
7.75
7.50
7.00
8.00
7.25
15.00
22.50
29.50
37.50
Tuesday: Overtime
accrued after 7.5 hours
in a single day.
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Sat.
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.
37.50
Friday: 7.5 hours
in a day includes
paid leave time
reported.
Full-time Civil Service Time Reporting Week 2
FLSA–Work Hours-Tracking Only
(OPV)
Sun.
Mon.
7.25
Tues.
Wed.
Thurs.
Fri.
Sat.
7.50
Vacation (VAC)
7.50
Sick (SNC)
Holiday (HOL)
7.50
7.50
FLSA–Time & Half Overtime (OVR)
Daily total:
Running weekly total:
0.00
7.25
7.50
7.50
7.50
7.50
7.25
14.75
22.25
29.75
37.25
Wednesday:
Example showing two
kinds of leave in the
same week, if you took
a vacation day the day
before Thanksgiving.
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37.25
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.
Part-time Academic Employee Time Reporting Week 1
Employee has an 80% FTE (32 hours per week) and works Monday-Friday
Sun.
FLSA–Work Hours-Tracking Only (OPV)
Mon.
Tues.
7.00
FLSA–Leave Hours-Tracking Only (OPU)
Wed.
2.75
Thurs.
7.00
Fri.
10.25
5.00
FLSA–PT Add’l Work Hours Paid (OPT)
2.00
FLSA–Time & Half Overtime (OPS)
0.00
7.00
7.75
7.00
12.25
8.00
7.00
14.75
21.75
34.00
42.00
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.
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6.00
2.00
Daily total:
Running weekly total:
Sat.
42.00
Friday:
Since this week goes beyond 40
hours, it also results in timeand-a-half overtime.
Part-time Civil Service Time Reporting Week 1
Employee has an 80% FTE (30 hours per week) and works Monday-Friday
Sun.
Mon.
FLSA–Work Hours-Tracking Only (OPV)
Tues.
7.00
Vacation (VAC)
Wed.
2.50
Thurs.
7.00
Fri.
7.50
Sat.
1.00
5.00
Sick (SNC)
FLSA–PT Add'l Work Hours Paid (OP1)
6.00
FLSA–Time & Half Overtime (OVR)
0.25
Daily total:
Running weekly total:
0.00
7.00
7.75
7.00
9.50
7.00
7.00
14.75
21.75
31.25
38.25
Tuesday, Thursday: The
7.5-hour daily overtime
limit still applies to parttime employees.
30
2.00
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.
38.25
Friday: Once the Work Hours-
+
Tracking Only leave taken
equal the 80% FTE (30 straighttime hours), additional nonovertime goes in the PT Add’l
Work Hours.
More Information
• https://go.Illinois.edu/flsa
• http://www.ahr.illinois.edu/
• http://shr.illinois.edu/empresources/home.ht
ml
• Email: [email protected]
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Questions?
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
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