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Changes to FLSA Implementation Due to Recent Nationwide Injunction

Wednesday, December 7, 2016

Last week, we communicated news that on Tuesday, November 22, 2016, a U.S. District Court judge issued a preliminary, nation-wide injunction halting implementation of the U.S. Department of Labor (DOL)’s new overtime rule. While that injunction is considered preliminary, it is indefinite in duration.  As a result, the University of Arizona (UA) is adjusting its scheduled implementation of FLSA regulation changes.  Individuals who were transitioned to non-exempt status effective November 21, 2016 will be transitioned back to exempt status effective December 5, 2016. All affected employees will receive a notification when the change has been processed.

Below is important information you need to know about this change:
 


DO EMPLOYEES WHO BECAME NON-EXEMPT EFFECTIVE NOVEMBER 21, 2016 STILL NEED TO REPORT HOURS FOR THAT PAY PERIOD?
Yes, employees who became non-exempt effective November 21, 2016 must report all hours worked for that pay period and those hours must be approved to avoid delays in pay. Hours worked in excess of 40 in either week will accrue compensatory time or overtime pay.
Effective December 5, 2016, employees transitioned back to exempt status will report time on an exception basis only and become ineligible for compensatory time or overtime pay. 

WHAT HAPPENS TO COMPENSATORY TIME ACCRUED DURING THE NOVEMBER 21 PAY PERIOD?
Compensatory time accrued will be paid out. Please mark hours worked in excess of 40 in either week as “cash” in the “pay overtime” section of the pay sheet. If “cash” is not indicated, the employee may experience a delay in the payout of accrued compensatory time. All compensatory time owed and not marked “cash” will be paid out on a subsequent paycheck.

WILL PAY ADJUSTMENTS GIVEN TO INCREASE INDIVIDUAL’S PAY TO THE INTENDED FLSA THRESHOLD BE TAKEN AWAY?
No, pay adjustments will not be retracted.

WILL RE-CLASSIFIED APPOINTED EMPLOYEES HAVE TO SIGN A NEW NOTICE OF APPOINTMENT?
Yes, employment contracts must match each employee’s conditions of employment, so all appointed employees who are transitioning back to exempt status must sign a new notice of appointment. Each college or division will generate new notices of appointments from their pagelet in UAccess.

WHAT ARE WE DOING WITH POSTDOCTORAL SALARIES?
The NIH and NSF are honoring their commitment to increase postdoctoral stipend levels to $913 per week. In order to provide competitive compensation with other academic institutions and ensure equity amongst postdoc positions paid as stipends, the UA will proceed with increasing salaries for postdoctoral research associates effective July 1, 2017.

ARE EMPLOYEES’ EXEMPTION STATUSES SUBJECT TO CHANGE AGAIN?
Yes, it is possible the FLSA regulatory changes in their current or revised form will proceed. In that case, the UA will adjust accordingly and remain in communication with campus.

WHAT IF I HAVE ADDITIONAL QUESTIONS?
You may contact the Division of Human Resources at

Main Campus
Phone: (520) 621-3660
hrsolutions@email.arizona.edu

UA Health Sciences
Phone: (520) 626-5593
hrsolutions@email.arizona.edu

Phoenix Biomedical Campus
Phone: (602) 827-2600
hrsolutions@email.arizona.edu

 


1FLSA Taskforce Members
PRis Cantu, Director Workforce Systems
Ross Cobb, Senior Associate Athletic Director, Business Affairs
Kelly Delforge, Director, Human Resources Solutions and Consulting
Michelle Meyer, Manager, Payroll
Abbie Montenegro, Principal Enterprise Business Analyst, Workforce Systems
Garth Perry, Assistant Director, Budget Office
Helena Rodrigues, Assistant Vice President, Human Resources
Stephanie Rosenberg, Senior Associate General Counsel
Nicole Salazar, Comptroller
Marilyn Taylor, Senior Assistant Vice President, Finance and Administration
David Wagner, Associate General Counsel
Staci Wilson, Director, HR Systems – Benefits Administration