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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">In case you didn’t receive this, FYI.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">Carolyne A. Greeno | Manager, Finance and Administration</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"> </span><span style="font-size:11.0pt;font-family:"Helvetica",sans-serif;color:black"><img width="15" height="15" id="Picture_x0020_1" src="cid:image001.png@01D1B279.99042E30" alt="Description: Description: Description: Description: Description: Description: http://redbar.web.arizona.edu/logos/images/thumb_pawprints.gif"></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><br>
Cooperative Extension Administration <o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Allison Vaillancourt [mailto:hrsolutions=email.arizona.edu@mail186.atl101.mcdlv.net]
<b>On Behalf Of </b>Allison Vaillancourt<br>
<b>Sent:</b> Thursday, May 19, 2016 4:47 PM<br>
<b>To:</b> Greeno, Carolyne A - (cagreeno) <cagreeno@email.arizona.edu><br>
<b>Subject:</b> Fair Labor Standards Act (FLSA) Regulatory Changes<o:p></o:p></span></p>
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<p class="MsoNormal" style="line-height:150%"><span style="font-size:10.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:#202020">HR Alliance Colleagues,<br>
<br>
I'm sharing with you the message below in advance of a campus announcement which will go out shortly via email.<br>
<br>
Allison Vaillancourt<br>
</span><span style="font-size:7.5pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:#202020">Vice President, Human Resources & Institutional Effectiveness</span><span style="font-size:10.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:#202020">
<o:p></o:p></span></p>
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<p class="MsoNormal" style="line-height:150%"><strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">To</span></strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">:
All University Colleagues<br>
<strong><span style="font-family:"Lucida Sans Unicode",sans-serif">From</span></strong>: The Division of Human Resources<br>
<strong><span style="font-family:"Lucida Sans Unicode",sans-serif">Date</span></strong>: May 19, 2016<br>
<strong><span style="font-family:"Lucida Sans Unicode",sans-serif">Subject</span></strong>: Fair Labor Standards Act (FLSA) Regulatory Changes<br>
<br>
Earlier this week the Department of Labor (DOL) made its long-awaited announcement of the final Fair Labor Standards Act (FLSA) regulatory changes. This message briefly summarizes the changes and describes next steps in the University’s implementation plan. <br>
<br>
<strong><span style="font-family:"Lucida Sans Unicode",sans-serif">What has changed?</span></strong>
<o:p></o:p></span></p>
<ul type="disc">
<li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l2 level1 lfo1;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%">
<span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif">The minimum salary threshold for individuals to be exempt from overtime will increase from $455 per week ($23,660 annually) to $913 per week ($47,476).
<sup>1, 2</sup><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l2 level1 lfo1;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%">
<span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif">The total annual compensation requirement for highly compensated employees will increase to from $100,000 to $134,004.<sup>1</sup><o:p></o:p></span></li></ul>
<p class="MsoNormal" style="line-height:150%"><sup><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">1</span></sup><em><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Must
be implemented prior to December 1, 2016.</span></em><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><br>
<sup>2</sup><em><span style="font-family:"Lucida Sans Unicode",sans-serif">The minimum salary threshold will be automatically updated every three years to remain at the 40th percentile of the overall labor market.</span></em><br>
<br>
<em><b><span style="font-family:"Lucida Sans Unicode",sans-serif">Note:</span></b></em><em><span style="font-family:"Lucida Sans Unicode",sans-serif"> Faculty members whose duties consist primarily of teaching and attorneys and physicians will remain in an
exempt status under the FLSA. The new regulations may allow some </span></em><a href="http://arizona.us9.list-manage.com/track/click?u=0aeb616343625dbd0d696bf1f&id=a9e7f1a2d6&e=e539f1270c"><em><span style="font-family:"Lucida Sans Unicode",sans-serif;color:#2BAADF">exemptions</span></em></a><em><span style="font-family:"Lucida Sans Unicode",sans-serif">
for coaches and “academic administrative personnel” who provide instruction or interact with students outside of the classroom. More guidance on these exemptions will be forthcoming.
</span></em><br>
<br>
<strong><span style="font-family:"Lucida Sans Unicode",sans-serif">What does this mean for employees</span></strong>?
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l1 level1 lfo2">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Most employees whose average weekly earnings are less than $913 at the time of implementation, based on either
<em><span style="font-family:"Lucida Sans Unicode",sans-serif">full or part-time equivalency</span></em>, will be automatically converted to non-exempt, hourly employees.<o:p></o:p></span></p>
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<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Impacted employees must then begin to track and positively report all hours worked.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l1 level1 lfo2">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">If hours worked exceed 40 in a week, overtime or compensatory time must be earned.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l1 level1 lfo2">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">4.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Appointed employees who become non-exempt under the new regulations will remain appointed and receive a revised notice of
appointment with an hourly rate of pay.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:150%"><strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">What does this mean for supervisors?</span></strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l0 level1 lfo3">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Supervisors are encouraged to work with their department business officers and designated Human Resource Consultants to understand
the impacts to their staff and evaluate available options.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:150%"><strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">What does this mean for departments?</span></strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l3 level1 lfo4">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Department business managers are encouraged to work in conjunction with local leadership to determine the financial and human
capital impact within their areas.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l3 level1 lfo4">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">Guidance on how and whether to adjust pay for those who regularly work more than 40 hours a week will be provided shortly.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in;text-indent:-.25in;line-height:150%;mso-list:l3 level1 lfo4">
<![if !supportLists]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">As a first step in implementing the new overtime rules, departments may run a report of their affected employees within
<a href="analytics.uaccess.arizona.edu"><span style="color:#2BAADF">UAccess Analytics</span></a> by following this path, Dashboards > Employee > Workforce and selecting the “FLSA Impact Report” tab.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:150%"><strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black">What are the next steps?</span></strong><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"><br>
A Fair Labor Standard Act Task Force composed of members from Human Resources, Office of the General Counsel, Office of the Provost, Financial Services Office, Payroll, Systems Control, and the Budget Office has been meeting for several months and will partner
with University departments to implement the new requirements. You can expect further communications through a multitude of channels, including live training and Q&A sessions, email, and updates to the
<a href="http://arizona.us9.list-manage.com/track/click?u=0aeb616343625dbd0d696bf1f&id=92461806f3&e=e539f1270c">
<span style="color:#2BAADF">FLSA implementation website</span></a> (under development). In the meantime, please direct your questions to your designated
<a href="http://arizona.us9.list-manage1.com/track/click?u=0aeb616343625dbd0d696bf1f&id=89501125e0&e=e539f1270c" target="_blank">
<span style="color:#2BAADF">HR Consultant</span></a>, or email them to <a href="mailto:hrsolutions@email.arizona.edu?subject=FLSA%20Changes%20Inquiry">
<span style="color:#2BAADF">hrsolutions@email.arizona.edu</span></a>. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:150%"><span style="font-size:9.0pt;line-height:150%;font-family:"Lucida Sans Unicode",sans-serif;color:black"> <o:p></o:p></span></p>
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