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

Tue May 17 20:19:03 MST 2016

Sent from my iPhone

Begin forwarded message:

From: "Castro Harrington, Cristina - (ccastroh)" <ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>>
Date: May 17, 2016 at 6:30:32 PM MST
To: "Antin, Parker B - (pba)" <pba at email.arizona.edu<mailto:pba at email.arizona.edu>>, "Burgess, Shane C - (shaneburgess)" <sburgess at cals.arizona.edu<mailto:sburgess at cals.arizona.edu>>, "Chorover, Jon - (chorover)" <chorover at email.arizona.edu<mailto:chorover at email.arizona.edu>>, "Farrell-Poe, Kathryn L - (kittfp)" <kittfp at email.arizona.edu<mailto:kittfp at email.arizona.edu>>, "Going, Scott B - (going)" <going at email.arizona.edu<mailto:going at email.arizona.edu>>, "Hawley, Jana - (hawleyj)" <hawleyj at email.arizona.edu<mailto:hawleyj at email.arizona.edu>>, "Marsh, Stuart E - (smarsh)" <smarsh at email.arizona.edu<mailto:smarsh at email.arizona.edu>>, "Ratje, Jeffrey M - (jmratje)" <jmratje at email.arizona.edu<mailto:jmratje at email.arizona.edu>>, "Schumaker, Karen S - (schumake)" <schumake at email.arizona.edu<mailto:schumake at email.arizona.edu>>, "Silvertooth, Jeffrey C - (silverto)" <Silver at ag.arizona.edu<mailto:Silver at ag.arizona.edu>>, "Staten, Michael E - (statenm)" <statenm at email.arizona.edu<mailto:statenm at email.arizona.edu>>, "Tabashnik, Bruce E - (tabashnb)" <BruceT at cals.arizona.edu<mailto:BruceT at cals.arizona.edu>>, "Thompson, Gary D - (gdthomps)" <GaryT at ag.arizona.edu<mailto:GaryT at ag.arizona.edu>>, "Torres, Robert Matthew - (rtorres1)" <rtorres1 at email.arizona.edu<mailto:rtorres1 at email.arizona.edu>>, "Wright, Andre-Denis Girard - (adwright)" <adwright at email.arizona.edu<mailto:adwright at email.arizona.edu>>
Cc: "CALS Business Officers (calsbusofficers at list.arizona.edu<mailto:calsbusofficers at list.arizona.edu>) (calsbusofficers at list.arizona.edu<mailto:calsbusofficers at list.arizona.edu>)" <calsbusofficers at list.arizona.edu<mailto:calsbusofficers at list.arizona.edu>>
Subject: Re: Important Communication-Some "exempt" employees moving to "nonexempt"

All,

I just wanted to give you a heads up that news is circulating within the HR community that the Department of Labor may be making a decision about the FLSA changes tomorrow, May 18th, to include the following:

1)  The salary level threshold now being considered is approximately $47,000 annually from the $50,400 I reported previously.  If this is the case, current exempt employees earning less than $47,000 will become nonexempt.

2)  Instead of being required to implement this change within 60 days of the decision, employers will be expected to make this effective by September 1st.

3)  There may be a special dispensation for post-docs, but I don't have detailed information to share.

Our Division of Human Resources is planning a communication strategy and preparing resources for employees, supervisors, and departments.  A dashboard will be available to determine who may be affected by department.  I'll continue to send out information when I know more.

Cristina Castro Harrington, SPHR
Director-Human Resources
College of Agriculture and Life Sciences

The University of Arizona
ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>
(520) 621-9168
________________________________
From: Castro Harrington, Cristina - (ccastroh)
Sent: Tuesday, April 26, 2016 4:08 PM
To: Antin, Parker B - (pba); Burgess, Shane C - (shaneburgess); Chorover, Jon - (chorover); Farrell-Poe, Kathryn L - (kittfp); Going, Scott B - (going); Hawley, Jana - (hawleyj); Marsh, Stuart E - (smarsh); Ratje, Jeffrey M - (jmratje); Schumaker, Karen S - (schumake); Silvertooth, Jeffrey C - (silverto); Staten, Michael E - (statenm); Tabashnik, Bruce E - (tabashnb); Thompson, Gary D - (gdthomps); Torres, Robert Matthew - (rtorres1); Wright, Andre-Denis Girard - (adwright)
Cc: CALS Business Officers (calsbusofficers at list.arizona.edu<mailto:calsbusofficers at list.arizona.edu>) (calsbusofficers at list.arizona.edu<mailto:calsbusofficers at list.arizona.edu>)
Subject: Important Communication-Some "exempt" employees moving to "nonexempt"

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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