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 U.S. Department of Labor – Fair Labor Standards Act Changes (August 2004)
 Instructions

On August 23, 2004, new federal rules and regulations for determining positions that may be exempt from the recordkeeping and overtime requirements of the Fair Labor Standards Act (FLSA) will become effective. Under FLSA positions may be exempt from the recordkeeping and overtime requirements of the Act provided they pass a “salary test” and one of six “duties tests”. The three major “duties tests” affecting the university are the Executive, Administrative and Professional duties tests.

One of the most sweeping changes under the new regulations is that the minimum salary test used in conjunction with the Executive, Administrative, Professional duties tests has been increased to $455/week or $23,660/year (no extrapolation allowed, FTE doesn’t matter). Note: Teachers (including all faculty, GPTIs, and TAs), lawyers, and doctors are exempt from the minimum salary test. In addition, the Department of Labor (DOL) has updated, simplified and in some cases expanded the duties tests under these various exemption categories. Furthermore, DOL has incorporated language from previous court rulings and opinion letters in the new regulations in an effort to clarify and update key concepts.

 In response to the above regulatory changes the university will be implementing the following:

Change the minimum of Pay Grade 801 to $23,660 or $455.00 per week. Department Heads will be notified individually if the new minimum salary will affect any of their staff employees or if positions will have to be reviewed for maintaining their Exempt status under the new duties tests.

Non-classified (no pay grade) Exempt staff positions will have an unpublished salary minimum of $23,660 annually.

Non-classified Research positions, Research Aide and Post Doctoral Research Associate, will have an unpublished salary minimum of $23,660.

 GPTIs/TAs will be required to meet the criteria outlined below:

They will be required to meet the updated DOL definition of a teacher which is, “any employee with a primary duty of teaching, tutoring, instructing or lecturing in the activity of imparting knowledge and who is employed and engaged in this activity as a teacher in an educational establishment”. This means that employees whose primary duty is to grade papers and/or proctor exams will no longer qualify for this exemption and will have to be employed as Graduate Assistants and paid hourly. GPTIs/TAs that meet this definition are not required to meet the salary test of $455/week or $23,660/annually.

In order to ascertain which GPTIs/TAs meet this requirement, departments will have to complete a GPTI/TA Certification (Attachment A) and attach it to the monthly turnaround form (if the employee is being reappointed for this fall semester) as well as to the PAFs of any new employees being hired as GPTIs/TAs for the first time. A new certification form will have to be completed and attached to all future Appointment and Reappointment PAFs.

When departments determine that graduate students currently appointed as GPTIs/TAs must be appointed as Graduate Assistants, the required changes can be made using either the employees’ turnaround document or on a PAF/ePAF. When using the employees’ turnaround document the department will need to change the Job Class Code to “043906”, Monthly Rate to an Hourly Rate, the Earnings Type to “RGH”, and note in the Explain Box, “Change monthly-paid GPTI/TA to hourly-paid Graduate Assistant.”

 

Note: Affected graduate students, who have active monthly appointments through the end of August, should be changed to hourly-paid Graduate Assistants effective 9/01/2004. All others should be appointed hourly effective the first day of employment.

 Research Assistants (RAs) will be required to meet the criteria outlined below:

The graduate student is engaged in research in the course of obtaining an advanced degree and is performed under the supervision of a member of the faculty in a research environment under a grant or contract.

The graduate student research work is for course credit or is simultaneously fulfilling the requirements of an advance degree. For example: the research is being used in producing a thesis or dissertation that is a requirement of the degree.

Graduate students performing research services that do not meet the above requirements must be appointed as Graduate Assistants and paid hourly.

In order to ascertain which RAs meet this requirement, departments will have to complete a RA Certification (Attachment B) and attach it to the monthly turnaround form (if the employee is being reappointed for this fall semester) as well as to the PAFs of any new employees being hired as RAs for the first time. A new certification form will have to be completed and attached to all future Appointment and Reappointment PAFs.

Employees whose primary duties do not meet the new requirements will have to be employed as Graduate Assistants and paid hourly. When departments determine that graduate students currently appointed as RAs must be appointed as Graduate Assistants, the required changes can be made using either the employees’ turnaround document or on a PAF/ePAF. When using the employees’ turnaround document the department will need to change the Job Class Code to “043906”, Monthly Rate to an Hourly Rate, the Earnings Type to “RGH”, and note in the Explain Box, “Change monthly-paid RA to hourly-paid Graduate Assistant.”

 

Note: Affected graduate students, who have active monthly appointments through the end of August, should be changed to hourly-paid Graduate Assistants effective 9/01/2004. All others should be appointed hourly effective the first day of employment.

 Non-Exempt employees are not directly affected by these Department of Labor changes.

If you have any questions or need additional information, please contact Dave Gruver at 742-3851, ext 223.

 

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