Based on the new rule, as many as 150 currently exempt NSU employees will have their jobs’ FLSA exemption status designations changed from Exempt (salaried, paid monthly) to Non-exempt (hourly, paid bi-weekly). As a result, impacted employees will be required to accurately record their daily working time and will have the right to overtime, compensated as compensatory time (comp time) at a rate of 1 ½ hours (time and a half) for each and every hour worked in excess of 40 in the designated workweek.
Transitioning from monthly, salaried, where pay is currently (at the end of the month) to hourly, biweekly, will result in a two week pay lag (pay period ends on a Saturday, and bi-weekly pay is received on the Friday two weeks later). For instance, Bi-weekly pay period 25 (BW25) is for the working dates of 11/20/16 to 12/3/16 but will not pay until 12/16/16.
Regardless of when a transition from exempt, salaried to non-exempt, hourly occurs, all pay is received. It is the timing of the transition that can be disruptive. This is why we are attempting to give as much notice as possible to those employees who may be switching to non-exempt (hourly) as a result of the FLSA change, to give as much time as possible to plan. Impacted employees should take some time to examine their personal finances and plan to budget within the bi-weekly payroll cycles.
While the new rules require final implementation by December 1, 2016, we are implementing the transition in November. We are diligently working towards creative solutions to best serve employees. Our goal is to help minimize any negative impact the timing may cause, as impacted employees adjust to 26 paychecks per year instead of 12. Human Resources, Payroll Services, Budgets and Accounting, Academic Affairs, and Student Affairs are working together as NSU transitions.