USG Human Resources
RACAA/RACSA Summer Conference
Marion Fedrick, Vice Chancellor for Human Resources
July 2016
Agenda
• OneUSG Decisions
• Voluntary Benefits Programs
• FLSA Update
• HR Policy Updates
OneUSG Human Capital Management
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Impactful Decisions
• Confirm faculty option for 10/12 month pay
• Standardized calculation for 10-month faculty hourly rate
• Select monthly pay frequency change approach
• Reaffirm manager self-service and standardized approval
hierarchies
• Benefits outsourcing key decision making
USG Employee Benefits – Voluntary Benefits
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Overview
• This spring, we evaluated current institution based plans and the
competitive marketplace. We went out to market for 4 group plans:
• Critical Illness
• Accident
• Hospital Indemnity
• Legal
• Currently 22 out of our 29 institutions have at least one of these
program offerings for their campus
US Department of Labor Regulations
Fair Labor Standards Act (FLSA)
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Update
• May 17, 2016 - U.S. Department of Labor announced the final revision
• Effective date of change is December 1, 2016
• Projected USG implementation September 2016 to minimize impact on employees moving from
exempt to nonexempt.
• Annual Salary Threshold
• $455/week ($23,660) to $913 ($47,476 per year);
• Highly Compensated - threshold increased from $100,000 to $134,004
• Automatic updates of the salary threshold effective January 1, 2020
• Duties Test
• Workers earning more than the salary threshold are still subject to the duties test to determine
eligibility for overtime
US Department of Labor Regulations Fair Labor Standards
Act (FLSA) Special Provisions for Higher Education
Institutions
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Compensatory Time
• An employee must be permitted to use comp time on the date requested
unless doing so would “unduly disrupt” the operations of the agency.
• Any overtime worked over max must be paid. Compensatory time must be
paid on termination or transfer from the institutions.
Timekeeping
• The recordkeeping requirements provide that an employer must keep an
accurate record of the total number of hours worked for each day in a pay
period.
• Employers can continue to permit their employees to work flexible hours as
long as their total hours each day are accurately recorded.
US Department of Labor Regulations Fair Labor
Standards Act (FLSA) Special Provisions for Higher
Education Institutions
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Teachers
Teachers continue to be exempt from the overtime provisions if their primary duty
is teaching, tutoring, instructing or lecturing in the activity of imparting
knowledge, and if they are employed and engaged in this activity as a teacher in an
educational establishment.
Academic administrative personnel
• Subject to the salary basis requirements
• Example - department heads and other employees with similar responsibilities.
• Non-academic administrative employees who do not meet the special
provisions for academic administrative employees (i.e., admission counselors
and recruiters), will be eligible for overtime if they earn below the salary level
set in the final rule and they work more than 40 hours in a week.
FLSA Readiness Assessment Survey
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Potential number of Exempt Employees Changed to Non-Exempt
Research 5,900
Comprehensive 880
State University 780
State College 470
FLSA Readiness Assessment Survey
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Top Three Job Classifications Impacted:
Student Affairs Professionals
• Recruiters
• Financial Aid or Admissions, etc.
Academic Affairs Professionals
• Advisors
• Counselors, etc.
Administrative Associates
• Administrative Specialist
• Administrative Coordinators, etc.
FLSA Readiness Assessment Survey
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Implementation Strategies Identified
• Offset potential costs by managing hours of full time employees moving from
exempt to nonexempt rather than increasing salaries or paying additional overtime
• Utilize compensatory time in lieu of overtime payment (policy modification pending
to increase current maximum)
• Impactful soft changes
• Expanding flexible scheduling for employees
• Implement process improvements to increase efficiencies and minimize hours
required to complete work
• Job-sharing
• Work away strategies (i.e., teleworking, working from a site closer to home, etc.)
FAIR LABOR STANDARDS ACT
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Top Concerns:
• Compliance Timeframe
• Conversion of staff from monthly payroll to bi-weekly payroll
• Unbudgeted Cost Communication and training
• Impact on strategic goals, i.e. enrollment growth(balancing time management/overtime
cost control) of previously exempt staff
• The impact on morale/employee perception of loss
• Change Management and Training
• Future Annual Automatic Increases to salary threshold level (budget planning)
• Next Steps…
Human Resource Policies
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HRAP Updates
• Tuition Assistance Program (TAP) 2017/2018 Academic Year
•
Dual Employment (Joint Employment)
•
Reduction In Force
•
Inclement Weather
•
Time and Leave Approval
•
Workweek and Overtime
•
BCAT Job Codes
Follow Up & Questions
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