There are several things managers with affected employees should take into consideration as OU moves toward this transition. Find more information for Norman managers
Important Reminders for HSC Managers
Fulfilling the new FLSA exempt regulations is a high priority; HR will continue to review personnel data to ensure compliance.
Tips for Navigating the FLSA Exempt to Non-exempt Employee Transition
A. Leave accrual rules for exempt (salaried) and non-exempt (hourly) employees are calculated differently, specifically affected are part-time employees who transition to non-exempt. Employees who are 1.0 FTE may notice some slight fluctuation in their accrual amounts.
Leave accrual for exempt employees is tiered, based upon FTE. Exempt employees working at least .50 FTE accrue paid leave in proportion to their FTE appointment as follows:
- .5 FTE through .59 FTE, will accrue leave at 50%
- .6 FTE through .74 FTE, will accrue at 75%
- .75 FTE and above will accrue at 100%
Nonexempt employees accrue paid leave on a pro-rata basis depending on the number of hours paid. For most employees, their accrual will reflect their actual FTE. For example, 6 year employee who is .75 FTE, may see their biweekly PTO accrual go from 9.23 hours to 6.92 hours.
B. The transition from exempt to non-exempt will not create a change in retirement or benefits eligibility.
C. As a public employer, the university can provide compensatory time off in lieu of paying for overtime worked with the employee’s agreement or understanding. The Staff Handbook provides additional guidance for compensatory time [excerpt below]. The Compensatory Time Election form can be found on the TAL website.
4.3.2 COMPENSATORY TIME
Compensatory time is an alternative method for compensating employees who work overtime. No overtime is to be worked, however, unless it is approved in advance by the employee's supervisor. FLSA-exempt employees are not normally eligible for compensatory time. Exceptions to this policy must be approved in advance by the appropriate provost/vice president. No employee shall be required to receive compensatory time off in lieu of overtime pay unless an agreement or understanding is reached by the employer and employee before the performance of the work. Should an FLSA- nonexempt employee be required by a supervisor to work overtime, the employee may be given the choice between receiving monetary compensation or taking compensatory time-and-one-half off at a mutually agreeable time.
Compensatory time is to be taken within one year of the date of accumulation or the employee is to be compensated monetarily. No more than 90 hours of compensatory time (60 hours of overtime worked) can be accumulated. Terminating employees are to use or be paid for compensatory time hours prior to the effective date of their termination. Transferring employees will be required to use compensatory hours prior to transfer or be paid by the department in which compensatory time accrued. For employees appointed to work at an FTE less than 1.00, the policy will not be applicable unless hours worked in a work week exceed 40. Such an individual may accumulate those hours worked over 40 hours in a work week as compensatory time subject to the provisions of the compensatory time policy. Questions regarding the compensatory time policy should be directed to Human Resources.