| This communication is to notify you of revisions to the Fair Labor Standards Act (FLSA), the federal regulations that govern labor standards. The FLSA is also called the Wage and Hour Law and is enforced by the U.S. Department of Labor (DOL). The recent changes, which will take effect in August, 2004, impact some entry-level PAT positions at the University and System-wide.
As background information, the FLSA's primary objective is to eliminate detrimental working conditions by establishing protections for employees regarding minimum wage, child labor, and overtime pay provisions for virtually all public and private employers. The basic premise of the FLSA is that all jobs are to be paid by the hour and employees are eligible for overtime, unless the employer can prove that the job duties meet the FLSA standards for exemption. Jobs that are exempt can be paid on a salary basis. Within USNH, for example, PAT jobs are exempt from FLSA and overtime regulations, while Operating Staff jobs are non-exempt and overtime rules apply. Therefore, it is important that employees assigned to exempt positions perform work that meets the FLSA standards for exemption. Under FLSA's overtime rules, employers must pay any non-exempt employees (i.e., those not specifically exempted from the FLSA rules) overtime pay for hours worked in excess of 40 in a workweek. The FLSA's revised, more stringent criteria will be used to determine whether, based on the actual job duties in the job description, an employee is eligible for overtime and paid by the hour (OS) or exempt from overtime pay and paid a salary (PAT). Some USNH entry-level PAT positions may not meet the new exemption criteria, and that's where we're impacted. So what does this mean for UNH positions? Because of these revisions, as entry-level PAT positions become vacant and/or become subject to job classification review, HR Partners will be working with managers in reviewing job descriptions to determine if a change to non-exempt may apply under the new regulations. We are reviewing classifications that may now be subject to change, and, to date, have identified Information Technologist I's as one that needs immediate attention. Some other job classifications will be identified for review soon. In the meantime, positions which become vacant will be subject to review. Please note that the basis for determination of exempt or non-exempt status is the actual duties of the job, not the job title. A change from exempt to non-exempt status means that an employee would convert from PAT to Operating Staff. Employees who change from PAT to Operating Staff will change to the Earned Time leave program, be eligible for the longevity benefit, and be subject to USNH HR policies pertaining to non-exempt employees (i.e., overtime, termination notice, rest periods, shift differential, etc.). Their salary, core benefits (medical, dental, life, long term disability), and eligibility for FY 05 salary increases will not be affected. Again, this change in status is being driven by federal legislation and applies throughout USNH as well as other employers nationwide. HR has been informed that the DOL will be aggressively conducting audits of employers, including higher education. Penalties for non-compliance will be severe, so it's incumbent upon the University to demonstrate due diligence regarding compliance. We appreciate your cooperation as we conduct this examination of jobs within USNH. Our goal is to maintain USNH's legal compliance and make any employee transitions from PAT to OS as smooth as possible. |