Key FLSA dates, timelines established

Some employees who are impacted by the new overtime regulations in the Fair Labor Standards Act (FLSA) will begin receiving notices this week.

As a reminder, the new regulation requires that an employee be paid a salary of at least $47,476 ($913 per week) on an annual full-time basis to qualify for exempt status. Those under that salary level are nonexempt and their pay must meet the minimum wage and overtime provisions of the FLSA. This means that they may be eligible for overtime pay if they work more than 40 hours per week.

University officials continue to make progress on the many FLSA decisions and details that must be worked out before Dec. 1, the U.S. Department of Labor (DOL) deadline for compliance.

Here are some updates on FLSA activities. 

Notices to employees

This week, supervisors will begin receiving emails from UHR with notice letters for impacted employees. The email will contain instructions regarding the communication process. Supervisors are encouraged to contact UHR or their unit's HR liaison if they have questions before meeting with employees. (AFSCME staff are governed by the collective bargaining agreement and are not impacted by the latest FLSA changes.)

Training sessions

These training sessions will be available, beginning in November:

• Required online training for supervisors and employees impacted by changes to the FLSA regulations, available Nov. 1. Participants will receive an overview of the FLSA with a particular focus on upcoming changes and what that means for supervisors and employees at ISU.
• Working sessions for supervisors, available Nov. 7. In these small group sessions, supervisors will learn about time management and how to communicate with employees about time.
• Required training for individuals who are responsible for entering employee hours into ADIN or Tracy Time, beginning Nov. 7. The training will cover the rules and standards for keeping and entering time. 

What counts as hours worked?

The university will follow the DOL's guidance to determine what constitutes hours worked. ISU officials are developing specific guidelines that should be available shortly. In general, all hours worked will count toward calculating the overtime threshold of 40 hours per workweek. Leave time is not factored into overtime calculation. UHR has released guidelines for compensable time for nonexempt employee travel. View the decision tree and guidelines online.

Compensatory time

Iowa State will use compensatory time to help manage overtime costs. Guidelines are being developed for supervisors and employees. Supervisors can choose whether compensatory time or overtime will be used for hours worked over 40 hours in a workweek. Only time worked will be counted in the calculation toward 40 hours. Compensatory time will max out at 80 hours per nonexempt employee in a fiscal year. In areas with higher overtime potential, UHR is working to develop an exception to the maximum hours to support the unit’s specific needs. 

The next few weeks

“We recognize that employees and supervisors will begin to have discussions about the upcoming changes before all of the guidance is complete," said interim vice president for UHR Kristi Darr. "It’s OK to start talking about the work and what options are needed for planning. Our committees feel strongly that the sooner we can notify employees and supervisors of their official statuses the better.

"We appreciate our employees' and supervisors' advice and patience as we've worked to incorporate the new FLSA rules at Iowa State. We're putting final touches on the guidance documents and will distribute them before Dec. 1."

Related stories:

• New overtime regulations go into effect Dec. 1, Sept. 29, 2016
• Where to find out about more FLSA changes, Oct. 6, 2016
• ISU leaders continue FLSA discussions, decisions, Oct. 13, 2016