to new federal labor regulations|
At least 333 more positiions subject to overtime
By Charlotte Crystal
After an in-depth review of new federal labor regulations,
which took effect Aug. 23, the University has
changed the designations of about 333 positions
currently filled, 50 currently vacant) from “exempt” to “nonexempt,” meaning
that these positions are now eligible for overtime compensation.
With this change, most of the Academic Division’s 4,300 staff positions
are subject to required overtime compensation — time-and-one-half payment
either in salary or leave time — for more than 40 hours of work in a workweek.
This change leaves about 1,700 classified positions exempt under the new regulations.
This Change Effects Employees
Of the Academic Division’s 4,300
staff positions, roughly 2,600 are now
eligible for overtime compensation as “nonexempt” employees.
• No one in the Academic Division lost the right
to earn overtime.
• At least 333 University positions changed from
exempt to nonexempt;
the majority are in Pay Bands 3 and below.
• At the Health System, the new regulations will
have had little impact as
many employees have been nonexempt for some time,
for market reasons,
even though federal regulations haven’t required it.
The new regulations make it more difficult for the University
to designate a position as being exempt from
overtime requirements, according to Thomas
chief human resource officer.
many labor organizations expected large numbers of employees
to lose their right to overtime pay, this will not be the
case at the University,” Gausvik
said. “Instead, the new regulations will have quite the opposite effect.
The affected employees now will receive overtime pay for actual hours worked
over 40 in a workweek, translating into greater compensation.”
The new Fair Labor Standards Act regulations, issued
by the U.S. Department of Labor, update and clarify
the criteria used to determine when an employee
be compensated for working overtime. The regulations raise the salary
to $455 per week, or $23,660 annually, before an employee’s position can
qualify as exempt.
The majority of University positions that were changed from
exempt to nonexempt are in Pay Bands 3 and below. Pay
Band 3 includes administrative
positions. Other staff positions, namely those in the executive secretarial-administrative
assistant category in Pay Band 4, also were changed from exempt to
A continuing review likely will identify additional positions
in Pay Band 4 and faculty nonteaching positions that
will be changed from
nonexempt, Gausvik said.
The new salary threshold is not prorated for part-time positions.
With the exception of a few professions, including teaching, all
new salary threshold are automatically considered to be subject
to the new regulations. The new regulations also add
a new exemption
(those earning at least $100,000).
Starting with the Aug. 25 semi-monthly payroll, affected employees
will be required to document all of their work hours on the University
Virginia Time Management
At the U.Va. Health System, the new regulations will have little
impact, said Graham Grove, director of human resources information
and acting compensation
director for the Health
market reasons, we have counted many of our employees as nonexempt
for some time, even though the federal regulations haven’t required us to do so.”
Gausvik said that no nonexempt employees in the Academic Division
saw a change in status under the new regulations — no one lost the right to receive
overtime payment. He also noted that the new regulations will not lead to any
layoffs or affect hiring at the University in any way.
He expects the financial impact on the University
to be minimal.
For more information on the new federal regulations,
visit the U.S. Department of Labor’s Web site: http://www.dol.gov/.
Select “FairPay Overtime Rules.”
about the status of University staff positions may
be directed to Dave Ripley, director of compensation
management, by phone at
924-4373, or by
e-mail at firstname.lastname@example.org.