Valencia Invites Feedback on FLSA-Driven Policy Changes: Compensation and Hours Worked

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In response to the new Department of Labor (DOL) Fair Labor Standards Act (FLSA) regulations passed earlier this summer, Valencia is making necessary adjustments to be in compliance with the new mandates before Thursday, December 1, 2016. As explained in the Total Rewards Meetings, which are being hosted through Friday, September 30, 2016, Valencia is using the changes as a catalyst to reform practices and policies to conform to the updated regulations and maintain excellence in student learning and community impact. As such, 26 Valencia policies will be amended, repealed or consolidated accordingly.

This is the second of three articles related to upcoming policy changes in which you will be able to provide your feedback. While last week’s article focused on policies pertaining to contracts and performance evaluations and degree recognition, this week’s article gives an overview of the changes to the policies pertaining to compensation and hours worked.

For specific policy information, you can click on the policy name for a link to the referenced policy.

Compensation and Hours Worked Policy Changes

There are currently 13 policies that correspond with employee compensation and hours of work. Based upon the new FLSA mandates, the compensation system will be restructured from three current salary schedules for career service, professional and technology employees into one staff salary schedule. (Note: Faculty are not impacted, and there are no changes to the faculty salary schedule.) Although there are changes in staff pay grade/classification and overtime processes, no one will lose base pay under the new system. The 13 current policies requiring adjustments are as follows:

The policies referenced above will be consolidated into one policy. The new policy, entitled College Policy 6Hx28: 3C-01 Total Rewards: Compensation & Hours of Work for Employees of the College, will reflect the following the updates:

– Clarity on definition of job descriptions: All full-time positions will have job descriptions that include a general description of the role, essential job functions, and knowledge, skills and ability requirements.

– Definitions and position classifications: The policy will be updated to reference the new staff categories, as outlined in the new pay grades and salary schedule.

– For those employees classified as non-exempt, compensatory (comp) time will no longer be an option effective Sunday, November 20, 2016. After this date, overtime will be paid after 40 hours are worked in a week (Sunday – Saturday).  In other words, sick leave, vacation leave, holidays or other paid leaves will not be considered when calculating hours for overtime purposes.

This change has provided us an opportunity to make some improvements to our process.  Here’s an example of how the improved process will work after Sunday, November 20, 2016: John submits his time card documenting that he took 36 hours of vacation Monday through Thursday and that he worked eight hours on Friday for a total of 44 hours. The system will automatically evaluate John’s time and determine that he has submitted too much time as vacation. An email will be sent to John and his supervisor notifying them of the situation and providing them instructions for correcting the issue. In this case they would be instructed to let payroll know the certificate of absence (COA) should reflect 32 hours instead of 36 and to correct the leave reported on the time card and resubmit it for processing.

Note: Staff employees with a balance of compensatory time on or after Sunday, November 20, 2016, must still use the compensatory time within the 180 calendar days of the time worked. If it is not used within the allotted timeframe, the compensatory time will be paid out in cash compensation.

– Language will be added to the policy and procedure to support the current FLSA regulations regarding deductions from salary for employees classified as exempt.

– Note: Faculty are not impacted by any changes relating to staff classifications, salary and compensatory time.

We value your thoughts and want to give each of you an opportunity to review the proposed policy updates and provide feedback on them. You may provide your thoughts on the proposed policy changes by commenting below or contacting:

Read next week’s issue of The Juice to read about additional policy changes and for an opportunity to provide your feedback.

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