Human Resources
Template Notification Letter – 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 Jan. 1, 2020. 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 to $35,568 per year. Any current exempt (or monthly paid) position that falls below the $35,568 threshold will become eligible for overtime pay effective Jan. 1, 2020. 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 - Only as an example for a full time employee working 40 hours per week and 52 weeks per year: An annual salary of $31,200 would convert to an equivalent hourly rate of pay of $15.00 based on 40 hours per week; 52 weeks per year; $31,200 divided by 2080 hours (40 hours per week, 52 weeks per year) = $15.00. You will be able to see your hourly rate of pay via the Duke@Work website.Benefit and Payroll Deductions Employees paid on the biweekly pay cycle are generally eligible for the Employees’ Retirement Plan (ERP). The ERP plan is provided in lieu of Duke’s contribution to the Faculty and Staff Retirement Plan. Information regarding the ERP plan will be sent to your home and is also available on the Duke Human Resources website at . You remain eligible to continue to make voluntary contributions to the Faculty and Staff Retirement plan, but you will need to re-establish contributions based on a biweekly pay schedule. Enclosed is additional information regarding your benefits and when payroll deductions are taken. Recording of All Work Time, Pay Dates and Additional Pay 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.Effective Jan. 1, 2020, 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.You will receive your regular monthly pay for December on the Dec. 23, 2019, pay date. The first biweekly pay date covering time worked in January will be Jan. 17, 2020, and will include payment for Jan. 1-5, 2020. To assist with the change in the timing of pay cycles, Duke will provide a one-time supplemental payment included in your check on Jan. 17 equivalent to two weeks of pay. This amount is in addition to your regular pay and will not require repayment.The final biweekly pay date in January is Jan. 31, 2020, which covers hours worked from Jan. 6-19, 2020. You will be paid in accordance with Duke’s bi-weekly pay dates as long as you remain in a non-exempt status. You may find the pay schedules on the Duke Human Resources website: 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 questions, please let me know or talk with our Human Resources representative, Name, Phone, Email. You can also contact the Human Resources Information Center at (919) 684-5600 for specific questions about benefits or payroll deductions. Sincerely,SupervisorAttachment: Pay Cycle Change and Your Payroll Deductions ................
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