Transcript FLSA

FLSA Presentation to
Payroll Coordinators
June 16 and 17, 2016
Randy West, Executive Director, HR Compensation
Changes Proposed by US DOL in 2015
• June 30, 2015 – US DOL released Notice of Proposed Rulemaking with
proposals to:
• Raise salary basis for OT to increase from current $455 per week, $23,660 per
year) to $970 per week, $50,440 per year, “possibly by 2016” – not pro-rated
for part-time positions
• Proposed level is targeted at 40th percentile of earnings for full-time salaried workers
• Raise highly compensated employee annual salary level to $122,148
• Proposed level is targeted at 90th percentile of earnings.
• Automatically update the salary and compensation thresholds annually
• Either based on a fixed percentage of wages or
• Tied to the Consumer Price Index (like State of Washington minimum wage law, which is
tied to CPI-U (consumer price index for urban wage earners).
• Asked questions about duties tests – “California Rule” (50% exempt duties required)
Finale Rule Announced May 18, 2016
• May 18, 2016 – US DOL released Final Rule
• Raise salary basis for OT to increase from current $455 per week, $23,660 per
year) to $913 per week, $47,476 per year
• Proposed level is targeted at 40th percentile of earnings for full-time salaried workers in
lowest U.S. Census Region (currently the South)
• Raise highly compensated employee annual salary level to $122,148
• Proposed level is targeted at 90th percentile of earnings (nationally).
• Automatically update the salary and compensation thresholds every 3 years
• January 1, 2020
• No changes to duties tests
What We’re Doing to Get Ready
• Creating new pro staff and classified job codes that are OT eligible
• Approx. 320 new pro staff, OT eligible codes
• Approx. 50 new classified, OT eligible codes
• Considering adjusting min for all pro staff OT exempt jobs to $47,476
• Considering bargaining min adjustments for OT exempt versions of
classified jobs up to nearest step to $47,476
• Waiting to see for the state does for classified non-union jobs
• Urging departments to
• Make sure job descriptions are up-to-date
• Consider the impact of jobs that might need to start tracking time
• Sent list of potentially impacted employees to Administrators on May 31, 2016
Questions?
• If you have questions that do not get answered at today’s meeting,
you can send them to Randy West in HR Compensation, or to your
assigned Compensation Consultant