[CED/CD/EAT] FW: Important Communication-Some "exempt" employees moving to "nonexempt"

[Greeno, Carolyne A - (cagreeno)]

Hi, all:

The following is from Cristina Castro Harrington.  This has been in discussion for a while, but it looks more likely to happen soon and will have an effect on all Extension/AES units.  Please be aware of these upcoming changes and contact the Extension Business Office with questions.  We'll communicate as we receive more information.

Thanks!

Carolyne



Hello everyone.  This message is being sent to the Executive Council, Unit Heads/School Directors, and Business Officers.  I am sharing some important information that may affect how some current "exempt" employees may be paid and what hours they work in a given workweek.

Background:  In 2015, the U.S. Department of Labor (DOL) announced a plan to modify overtime pay requirements under the Fair Labor Standards Act (FLSA), with changes to be effective in 2016.



Proposed Updates to the FLSA:  One of DOL's proposed revisions is to increase the "salary level test" minimum threshold from the current $455 per week ($23,660 annually) to $970 per week (approximately $50,400 annually).  All employees earning less than $970 per week will become nonexempt.  Current professional exceptions would continue to be made for physicians, attorneys, and those who have teaching responsibilities.

Impact to University and CALS:  Decisions will be announced no later than July 2016 and possibly earlier, and employers are expected to implement these changes within 60 days following the DOL announcement.

Approximately, 2900 current exempt employees (classified staff and appointed personnel ) will not meet the higher proposed threshold of $970 per week.  These employees will become nonexempt, be required to track hours, and qualify for overtime pay (or compensatory time) if they work more than 40 hours per week (see attached UA impact analysis for a breakdown).

In CALS, approximately 337 current exempt employees will become nonexempt.

Employment Category


Classified Staff




Postdoctoral (appointed)


Service Professional (appointed)


Academic Professional (appointed)


# of employees impacted


231


34


31


41


Primary titles (not inclusive)


Administrative Associate

Farm Supervisor & Sr.

Instructional Specialist Sr.

Program Coordinator & Sr.

Research Specialist & Sr.


Research Associate


Coordinator


Assistant Research Scientist

Research Associate


Next Steps:  The Division of Human Resources is creating an implementation, compliance and communication plan that will be available campus-wide in the next week or two.  I understand that appointed personnel will remain appointed until a new campus-wide job/compensation architecture is created.  Contracts for appointed personnel will include language referring to the possible changes in their exemption status and pay type.  Once regulations are finalized, impacted appointed personnel will receive new contracts.

Prepare for a cultural shift, the changes will affect how an employee is paid and what hours they work in a given week before they qualify for overtime pay (or compensatory time).  Nonexempt employees may work overtime if approved in advance by their supervisor, this includes time typically spent working after hours, such as checking emails.  Qualified nonexempt employees are to be paid overtime (or compensatory time) even if the employee failed to get approval or if the employee worked the hours voluntarily.  Clear communication and diligence will be key.

Estimate the impact this change will have on your budget and plan accordingly.  Nonexempt employees will be paid (or receive compensatory time) at a rate of one and a half times their normal hourly rate for all hours worked over 40 in a given week.

Who is Impacted in Your Unit?  I did not want to delay getting this important communication to you.  The Division of Human Resources has provided me a list of those employees in CALS who may be affected by this change.  I will be sorting the data, conducting further analysis, and sending unit specific lists later this week.
Let me know if you have any questions and I'll work with HR to get them answered.

Cristina Castro Harrington, SPHR, SHRM-SCP
Director-Human Resources
College of Agriculture and Life Sciences
Our Goal:  Be the most sought-after place to be a part of

The University of Arizona
ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>
(520) 621-9168

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