Duke University



Template 1 – DRAFT -- Employee Transitioning from Exempt to Non-ExemptTo be used as a template by the person’s supervisor, HR Manager, or Business ManagerDear __________,I am writing as a follow up to our discussion to provide more details about the transition of your position to one that will be eligible for overtime compensation effective December 1, 2016. This change is being made in compliance with federal regulations related to an update to the Fair Labor Standards Act (FLSA) announced earlier this year by the U.S. Department of Labor. Change in the Threshold for Overtime PayThis new federal regulation increased the minimum salary threshold at which a position would be considered “exempt” from overtime pay from $23,660 per year to $47,476 per year. Any current exempt (or monthly paid) position that falls below the $47,476 threshold will become eligible for overtime pay effective December 1, 2016. Your Rate of Pay to be MaintainedTo comply with this regulation, your annual salary amount will not change, but it must be converted to an hourly rate of pay based on your current work schedule. Example 1 - Only as an example for a full time employee working 40 hours per week and 52 weeks per year: An annual salary of $37,440 would convert to an equivalent hourly rate of pay of $18.00 based on 40 hours per week; 52 weeks per year; $37,440/40/52 = $18.00. You will be able to see your hourly rate of pay via the Duke@Work website.Example 2 (if employee’s actual salary is available): Based on your current annual salary of $________, your new hourly rate of pay will be $______, effective December 1, 2016.Benefits You will maintain your eligibility to participate in the Faculty and Staff Retirement Plan and will continue to receive the Duke contribution in lieu of eligibility to participate in the Employees Retirement Plan. You will also retain the same accrual rate for paid time off that you have today. However, if you later transfer to another job at Duke, benefit eligibility will be based on the status of the new position.Recording of All Work Time, including Overtime, During the Transition PeriodThis regulation change will also change how you record your work time.Effective December 1, you will continue to record your paid time off electronically in the monthly time off reporting system via Duke@Work, just as you do now. We have established a transition period from December 1, 2016 through March 5, 2017, to allow for moving to the biweekly payroll system on March 6, 2017.During the transition period, you will continue to receive your pay on a monthly basis, just as you have in the past.Your monthly time off reporting will continue through the transition period.Since you are eligible for overtime pay effective December 1, 2016, for any hours worked beyond 40 in any work week, you must submit a separate form (provided to you from Payroll Services) to your supervisor at the end of each month during the transition period (December, January, and February). Your last overtime form should also include any overtime worked through March 5, 2017.All overtime worked must be approved in advance by your supervisor.If you are approved to work overtime, you will receive 1.5 times your regular rate of pay for any hours you work beyond 40 in a work week. (insert whatever the specific department process or plan is for the submission of overtime hours worked)Pay Dates and Additional Pay During the Transition PeriodYou will continue to receive your full monthly pay during the transition period, with the regularly scheduled monthly pay dates for all monthly paid staff of December 22, 2016; January 25, 2017; and February 24, 2017.For March, 2017 you will receive a prorated amount of your normal monthly salary for the period March 1 – March 5. The pay date for this period will be March 24, 2017.Effective March 6, 2017, you will begin recording all time worked and any time off in the electronic biweekly timecard reporting system via Duke@Work or the Time and Attendance System.The first biweekly pay cycle will begin March 6 and ends on March 19, 2017. The pay date for these two weeks will be March 31, 2017.Payment for hours worked from March 20 – April 2 will be reflected in your next bi-weekly check to be received on April 14, 2017. To assist with the change in the timing of pay cycles in March, Duke will provide a one-time supplement, included in your check on March 24, equivalent to two weeks of pay. This amount is in addition to your regular pay and will not require repayment.Deduction Cycle for Benefits AFTER the transition to the Biweekly PayrollDeductions are taken from different pay periods during the month (e.g. dental insurance is deducted from the first biweekly check of the month and health insurance is deducted from the second biweekly check of the month). A complete schedule of deductions is available on the Human Resources website.Please review your deductions so that you will understand the deduction cycles.Automatic payroll deduction for contributions to your Faculty and Staff Retirement will be suspended effective March 1, 2017, to allow you to set the new deduction that meets your needs and plans. You will need to reestablish new deductions based on a biweekly pay schedule through the Retirement Manager website accessible from the Duke Human Resources website . If you have other personal deductions from your paycheck, please contact your individual financial institutions to notify them of the change in your pay schedule.Duke has developed a host of resources to assist you in this transition. You will find a video, timeline, and an extensive list of answers to common questions on the Duke Human Resources website at hr.duke.edu/overtime. If you have other questions, please let me know or talk with our Human Resources representative, Name, Phone, Email. Sincerely,Supervisor ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download