ISU leaders continue FLSA discussions, decisions

Iowa State administrators continue to make decisions about the new overtime regulations required by the Fair Labor Standards Act (FLSA). The university must comply with the new standards by Dec. 1.

As more information becomes available and decisions are finalized, university human resources (UHR) posts updates on its FLSA website. Here, employees will find an FAQ that is updated regularly; resources, including letters from President Steven Leath to faculty and staff; and links to additional Inside Iowa State articles about FLSA.

Following is a look at the latest details provided by university officials.

Salary threshold, exemptions

The U.S. Department of Labor says an annual fulltime salary of $47,476 ($913 per week) is the new threshold for employees who are exempt from overtime. In most cases, employees who earn less than that will be considered nonexempt and eligible for overtime pay if they work more than 40 hours per week.

Iowa State has determined that most employees, primarily professional and scientific staff whose salaries fall below the new threshold, will become nonexempt. This means these employees will be required to track their hours.

UHR anticipates communicating to supervisors regarding employee statuses beginning the week of Oct. 17. Supervisors will be asked to communicate directly with their employees.

Time tracking

Employees who are determined to be nonexempt will be required to track their time worked -- both regular and overtime -- beginning Dec. 1. Iowa State is working to set time-tracking standards that comply with FLSA guidelines. At a minimum, employees will be required to record the number of hours worked per day, and the number of hours worked per week. The university currently has a paper time-tracking method in place, which will continue at this time. Departments that have existing electronic systems in place may continue to use these systems. However, further guidance and other time-tracking tools are forthcoming.

Salary for post-docs

Leath has approved a proposal to raise the minimum full-time salary for post docs to the exempt threshold of $47,476. These salary increases will become effective Nov. 1. UHR currently is reviewing post-doc positions with less than full-time appointments, and it's likely these individuals will need to track their time worked beginning Dec. 1. UHR will notify post-docs who fall into this category on or before Nov. 1.

Budget impact

Iowa State has no central pool of funds to cover additional overtime costs for new nonexempt employees. Units and departments must discuss potential options to fund overtime earned by their employees. UHR and OUC have recommended that compensatory time be available for supervisors to manage overtime costs. Leath has endorsed this recommendation. More details about how compensatory time would be managed at Iowa State still are in the works.

Tools

UHR and OUC have engaged multiple work teams across campus to develop the tools necessary for Iowa State to comply with the FLSA's new overtime regulations. Continue to watch for updates on UHR's FLSA website and in Inside Iowa State to learn the latest developments.

Email UHR at FLSA@iastate.edu with additional questions.