System-wide Pay Plan and Overtime Regulations Session for AABS

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System-wide Pay Plan and

Overtime Regulations –

Session for AABS

Elizabeth SchwartzDirector of Workforce

Management

[email protected]

979.845.0357

employees.tamu.edu

10/25/2016

Human Resources | Page 210/25/2016

Background

Basic FLSA provisions

Working Time Issues

System-wide Pay Plan

HR Work in Progress

Topics


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


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

4


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


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


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

Exempt Job Duties


• $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.

Salary Minimum for Exemption


“Non-covered”

• Student Resident Advisors and Hall

Directors – reasonable agreement of

working hours

• Graduate Assistants Research

Other Special Categories


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

Impact of Change to Non-Exempt

at A&M


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


• This change is not about:

o Lack of trust

oNot being a “professional”

oDemotion or punishment

• This change is about:

oComplying with federal requirements

oExtending overtime protection to more

employees

Dealing with the Change


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


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


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

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

16


Recordkeeping

No federally-specified or required

format

Time clocks not required

Rounding to the nearest 15 minutes

Records retention

17


Hours Worked for Non-exempt

Employees

Risks of employees working “off the

clock”

18


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?


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

20


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?


Lactation Breaks

• 1-year period following birth

• Compensable…unless

• Flex schedules

• Designated lactation spaceshttp://rules-saps.tamu.edu/PDFs/31.99.99.M0.02.pdf

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/

23

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


Travel time

• Non-exempt employees

• Daily commute

• Same day travel

• Overnight trips

• Airport connections

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

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.

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

27


Training, lectures and meetings

• Compensable unless:

• Voluntary, AND

• Outside working hours, AND

• Not related to regular job, AND

• No productive work is accomplished

28


Other issues

Remote Working

Devices and their use

After hours? Required or not? Approved

or not?

29


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


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


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


• 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

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


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


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


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


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



HR/Payroll Contacts

• Transition period within PATH

• Implementation of new titles and change to

biweekly will be automated

o EPA blackout period Nov 21-30 in prep for load

o All positions will have a 12/1/16 iteration

o Wait to enter EPAs with dates after 12/1

o Extra steps to do retroactive funding source changes

o Only one title code for all source lines starting 12/1

• Help HR encourage patience with information and

communications



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

overtime-eligible for positions below $47,476 or

otherwise non-exempt

HR - Work in Progress


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.)


Q&A


Contact Information

Human Resources Compensation

979-845-4170 (main line)

[email protected]

Elizabeth Schwartz

Director of Workforce Management

[email protected]

979.845.0357

employees.tamu.edu

mailto:[email protected]

Documents

System-wide Pay Plan and Overtime Regulations Session for AABS