Fair Labor Standards Act (FLSA) Exemption Status and Pay Frequency

Dear Colleagues:

In preparation for the transition to UCPath (our new UC payroll, benefits and human resources system), here’s important information which may impact staff, students, and academic appointees in your departments.

Quick Read Summary:  

• Employees with multiple part-time jobs must have a single FLSA (Fair Labor Standards Act) status and be on one pay schedule before we transition to UCPath next March.

• We’re working to ensure all employees who hold multiple part-time positions are assigned one FLSA exemption of either Exempt - ineligible for overtime or Non-exempt - eligible for overtime.

• Beginning October 31, 2018, the current HR system will be updated to ensure employees who hold multiple part-time positions may not be entered with multiple jobs with different FLSA statuses and pay schedules.This may cause a delay in onboarding a new employee, if they already hold an existing job with a different FLSA status or pay schedule.  
  

• Pay schedules will be determined by overall FLSA designation of Exempt (monthly pay) or Non-exempt (bi-weekly pay).

HR is collaborating with the Academic Personnel Office, as well as the Graduate Division, as this change will impact a small number of student and staff employees, along with academic appointees. We encourage you to review the full communication below.  

HR staff from CSS will be reaching out to managers and supervisors of impacted employees, so your assistance with this important data cleanup project is greatly appreciated.

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The fine print:

Before UCB transitions to UCPath, the new UC payroll, benefits and human resources system, significant effort is required to ensure that all data in the current HR system is accurate and fully compliant with current University policy and with new UCPath processes. One area of focus in this effort is assessing the Fair Labor Standards Act (FLSA) exemption status and pay frequency of each position.

The Fair Labor Standards Act (FLSA), is a federal statute governed by the U.S. Department of Labor. The Act establishes minimum wage requirements, and includes regulations that define what work qualifies as Exempt versus Non-exempt for purposes of determining overtime eligibility, and the conditions under which an individual is considered a student versus an employee.

Consistent with the FLSA and University policy, all academic, staff, and student employees should have a single FLSA status (Exempt: salaried and ineligible for overtime pay, or Non-exempt: hourly pay, and eligible for overtime pay), and a single pay schedule (monthly or biweekly), even if they hold more than one appointment. This is especially critical for the UCPath implementation.

The appropriate FLSA status is defined by federal law and any violations could place the University at significant risk for back pay, fines, and penalties. The applicable provisions of the FLSA are defined by two major factors:

1. The nature of the relationship with the organization – is the individual at the University as an employee or primarily a student; and

2. The nature of the preponderance of the work that the individual is performing for the organization – is the work exempt from the overtime provisions or is it non-exempt and thereby subject to overtime.

In the course of auditing data for conversion to UCPath, we have identified employee records that require further review. In situations where an individual holds multiple, concurrent appointments in academic, staff, academic student (ASE), and/or casual-restricted student titles, it is important to ensure that only one FLSA status is selected based on the predominant work being performed, along with one pay schedule. Employee records with multiple FLSA exemptions and pay schedules will not convert to the new UCPath system. Additionally, the total of all appointments should not exceed 100% time, unless temporary dual employment has been formally approved on an exception basis by Campus Human Resources or Academic Personnel Office.

Individuals in student status are generally limited to appointments of no more than 50% except in very rare circumstances. This limitation is intended to support the student’s progress to degree and other academic success measures. Additionally, the status of “student” provides certain privileges and rights that are not afforded to regular employees of the University. For example, students are not required to pay FICA taxes, are given flexibility on work schedules, and may have access to University-provided housing and other services that are not generally available to other employees.

For all of the reasons described above, Academic Personnel, Campus Human Resources, and the Graduate Division are issuing the following guidance to all organizational units and hiring managers:

1. Effective immediately, steps are being taken to ensure that all employees, including students and rehires, have a single FLSA status and are paid on a single pay cycle. In cases where there are multiple appointments with more than one FLSA status, the assigned Human Resources Partner or hiring department must consult with the appropriate central office, e.g., Academic Personnel or Central HR Compensation, before the hiring action is finalized to arrive at a single FLSA status. Some work on this project is already underway and the HR system is being adapted to ensure that employee records may not be entered with multiple appointments with different FLSA statuses and pay schedules. A single FLSA exemption and pay schedule must be assigned for all appointments. As is the case currently, some employees with multiple positions will need to continue to submit two separate timesheets, one via CalTime, and the second a paper timesheet. Our offices have collaborated to crea te a FLSA Determination Matrix that will assist HR Partners and hiring departments in determining the most appropriate FLSA status.

2. The total combined percentage of all appointments for all UCB students should generally not exceed 50% unless formal approval is documented. In the case of graduate students appointed in academic titles, the appointment percentage may not exceed 75% without the approval of the Graduate Division. The approval authority is generally the central unit responsible for the primary role, e.g., Academic Personnel in the case of academic appointees, Graduate Division in the case of graduate students in academic titles, and CSS in consultation with Central HR Compensation for staff and casual/restricted student appointments. Any union notifications to change a FLSA exemption for union represented staff must be coordinated with Campus Labor Relations Office.

To assist with the above project, the CSS HR Managers, APO, and other key staff have been receiving weekly reports, and have been provided with resources to help them move this project forward. We request that you share this information with hiring managers in your divisions so they are familiar with the work currently underway. Your assigned HR Partner will need your assistance in moving this project forward and setting the correct FLSA and pay schedule for impacted employees and students.

Additional information, including a list of Frequently Asked Questions (FAQs), and the FLSA Determination Matrix can be found on our HR website:

If you have specific questions, please contact your assigned HR Partner, or email Compdesk@berkeley.edu for staff related questions, or APO at Appolicy@berkeley.edu for academic appointees.

We appreciate your support in addressing this very important compliance issue. By taking steps now to correct the necessary information, we will ensure all employee records convert to UCPath.

Warmly,

Jo, Fiona and Heather

Jo Mackness
Interim Assistant Vice Chancellor for Human Resources

Fiona M. Doyle
Vice Provost for Graduate Studies and Dean of the Graduate Division

Heather Archer
Assistant Vice Provost Academic Personnel Office

If you are a manager who supervises UC Berkeley employees without email access, please circulate this information to all.