Compensatory Time Policy Changes for FLSA Exempt Staff
Frequently Asked Questions
Q: Why are the compensatory time policies for employees in FLSA Exempt positions changing?
A: UNC Asheville has had a policy permitting both SHRA and EHRA staff members in positions designated as FLSA Exempt to earn compensatory time on an hour for hour basis since January 2004. HR was notified earlier this year by UNC General Administration that the UNC system does not have a policy providing the university with the authority to have such a policy for EHRA exempt staff, and as a result our practice of allowing flexibility for those EHRA staff to earn compensatory time must be discontinued.
To comply with the requirement to end the compensatory leave option for EHRA exempt employees, while maintaining the ability for SHRA exempt employees to earn compensatory time when a work unit experiences situations that require extraordinary time and effort beyond the employee’s regular work schedule, the policy for SHRA employees in exempt policies has been updated and separated, and a new policy addresses expectations for EHRA and SHRA employees in exempt positions.
- Compensatory Time Policy for SHRA Exempt Employees
- Expectations for Exempt Employees
Q: What is the effective date for the new policies?
A: January 1, 2018
Q: What are SHRA and EHRA positions?
A: SHRA stands for Subject to the state Human Resources Act. SHRA personnel practices are closely governed by the NC Office of State Human Resources (OSHR) and apply across all agencies of state government.
As a State entity, the University of North Carolina (UNC) system is subject to the State Human Resources Act. University positions are administered in accordance with the provisions and requirements of that Act. Positions covered by the Act are referred to as “SHRA” positions.
In addition to faculty, four categories of staff positions have been largely exempted from coverage under the Act. Staff positions considered EHRA (Exempt from the Human Resources Act) fall in these categories:
Instructional
Research
Public Service
Senior Academic & Administrative Officer (“SAAO”)
Based on the primary job duties, SHRA and EHRA positions are designated as Exempt or Nonexempt from the overtime provisions of the Fair Labor Standards Act (FLSA)
Q: How do I know if my position is EHRA or SHRA?
A: Your appointment letter and position description contain your classification information, including whether you are in an EHRA or SHRA staff position. If you are unsure of your position classification, ask your supervisor or contact Human Resources at 251-6605.
Q: What does Exempt and Nonexempt mean?
A: The federal Fair Labor Standards Act (FLSA) requires employers to compensate employees at a rate of time and one half for each hour worked over 40 hours in a workweek. Public sector employers, including UNC Asheville, may provide compensatory time (also called comp time) in lieu of overtime pay.
Based on the primary job duties, SHRA and EHRA positions are designated as either Exempt or Nonexempt from the overtime provisions of the FLSA. The FLSA establishes guidelines for employers to determine whether employees are Exempt or Nonexempt.
- Nonexempt Employees – employees primarily performing work that is subject to theovertime provisions of the FLSA. Nonexempt employees must be compensatedat 1½ times their hourly rate for hours worked over 40 in the workweek (special provisions apply to law enforcement officers working a 28-day cycle).
- Exempt Employees – employees primarily performing work that is not subject to the overtime provisions of the FLSA.
Q: How do I know if my position is Exempt or Nonexempt from FLSA?
A: Your appointment letter and position description contain your position’s FLSA designation. Also,
- Employees in FLSA Nonexempt positions complete a bi-weekly timesheet.
- Employees in FLSA Exempt positions complete a monthly leave record.
If you are still unsure of your designation, ask your supervisor or contact Human Resources at 251-6605.
Q: Are employers required to compensate all employees for overtime?
A: No, federal law only requires employees designated as Nonexempt from the overtime provisions of the FLSA to be compensated for overtime.
Employees in FLSA Exempt positions are paid an established monthly or annual salary and are expected to fulfill the duties of their position regardless of the number of hours worked. Employees in full-time Exempt positions are typically expected to be at work during the university’s standard business hours. The number of hours worked each week may vary to meet the responsibilities assigned to the position.
Q: Is there a limit to how much compensatory time an FLSA Exempt employee can accrue?
SHRA and EHRA employees in exempt positions employees may, with supervisor approval, continue to accrue compensatory time as usual through December 2017.
Beginning January 1, 2018:
- An SHRAFLSA Exempt employee may, with supervisor approval, accrue up to 80 hours. The time must be used within 12 months or will be forfeited. As before, compensatory time for an Exempt employee can never be paid out, and any balance will be forfeited upon separation from employment. Alternatively, the supervisor may approve professional scheduling (see the Compensatory Time Policy for SHRA Exempt Employees for more information).
- An employee in an EHRAExempt position cannot accrue compensatory time.
Q: I am an EHRA employee in an exempt position, and I will not be able to use all of my compensatory time leave balance by December 31, 2017. What will happen to that time?
A: You will still have 12 months from the date the time was earned to use your compensatory time; however, remember that in accordance with the current policy, only 40 hours may be carried over into January 2018; balances in excess of 40 hours at calendar year-end are forfeited.
Q: How many hours of compensatory time can an SHRA employee in an exempt position accrue under the new policy?
A: SHRA Exempt employees may accrue up to a maximum of 80 hours of compensatory time on a rolling basis, i.e., the compensatory leave balance cannot exceed 80 hours at any time. Please note that beginning in January 2019, compensatory leave balances will no longer be reduced to 40 hours at calendar year-end.
Q: What is professional scheduling?
A: Professional Scheduling (scheduling flexibility) is an option that supervisors may choose to offer to employees in FLSA exempt positions in the department. In the scope of a normal job for anemployee whose position is designated as exempt, work outside the usual schedule is often required. This might include evening meetings, weekends, extended travel, or work hours well beyond 40 in a given week. Employees in exempt positions may (with supervisor approval) come in later than usual, take additional lunch time, or leave work early to provide some balance to work time and personal time without having to take vacation, sick, or bonus leave. While all employees in exempt positions who earn leave must keep records of when they use part of their leave balances (in whole and half day increments), professional scheduling does not require extra record keeping.
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