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CC Response to DOL Overtime Regulations

Information Session on DOL Regulations:

  • November 9, 2016 (1:30 - 2:30) - Yalich Board Room
  • November 10, 2016 (3:30 - 4:30) - Yalich Board Room
  • November 11, 2016 (9:00 - 10:00) - Yalich Board Room

Frequently Asked Questions (expand to see answers)

Why is Colorado College changing some exempt positions to hourly?

President Obama directed the DOL to review and update regulations concerning overtime to ensure employees are being properly classified and paid for hours worked. Colorado College, along with all other employers in the United States, is having to assess several positions related to the DOL criteria for being exempt from overtime.

What is the effective date of the new regulations?

December 1, 2016

What is the new salary threshold for exempt status?

$913 per week, or $47,467 annually for full-time (2080 hrs.) positions.

What does it mean to be “exempt?”

Being exempt, for purposes of how an employee is paid, means that the position is paid a set salary that is not dependent on hours worked and the position is not eligible to receive overtime for hours worked over 40 in a single work week.

What does it mean to be “non-exempt?”

Being non-exempt, for purposes of how an employee is paid, means that pay is an hourly rate, overall pay is based on hours worked, and the position is eligible to receive overtime for any hours worked over 40 in a single work week.

How is exempt status determined?

The DOL provides specific criteria that must be met for a position to be exempt from overtime. Three “tests” related to salary and the actual duties of the job must be met. A position cannot be exempt just to avoid overtime pay.

How many positions at CC are potentially impacted by this new regulation?

Approximately 70 exempt positions fall below the new salary threshold. It has been determined that some of these positions meet the teaching exemption so that leaves approximately 56 exempt positions that fall below the new salary threshold.

Will faculty positions be impacted by the new regulations?

If the primary duty of a faculty position is teaching, the DOL considers the position exempt regardless of the salary paid.  

If I’m an exempt staff member and my current salary is below $47,476, will my salary automatically increase to that amount?

No, some exempt staff positions will be reclassified to hourly.

What was the process for deciding which positions would be reclassified to hourly and which positions would remain exempt?
The Office of Human Resources worked with division heads to determine how the new regulations would impact CC employees. Through several meetings, consultation with employment attorneys, our peer institutions, and consideration of many factors including the duties of individual positions, work schedules, budgetary impact, and impact on our market pay structure, recommendations were made to the President for her consideration.

How is the college going to address the differences in vacation accrual and sick leave accrual between exempt and hourly positions?

The college will be reviewing its leave policies this fiscal year and will follow CC’s process for policy review.

If my position is reclassified to hourly, will my salary decrease?

No, however, you will now be eligible for overtime pay for any hours worked over 40 in a work week.

If my position is reclassified to hourly, will I lose any of the vacation that I accrued as an exempt employee?

No, you will retain any vacation hours that you have accrued, but you will begin accruing vacation based on your length of service and hours.

Who should I talk to if I have questions about how my position will be affected?

Questions about individual positions should be directed to supervisors or division heads.

If my salary is increased to maintain exempt classification, will I still be eligible for a merit increase in July?

If you receive an increase of 2% or more on December 1, 2016, you will not be eligible for a merit increase on July 1, 2017.

Will my insurance benefits be different as an hourly employee?

No, insurance benefits are the same for exempt and hourly employees.

Will the college provide a pool of funds for overtime to each division?

The President and division heads will determine how overtime costs will be funded.  Supervisors will be expected to work with staff to manage schedules to avoid overtime costs, if possible.