Definitions

Letter of Appointment – (Salaried) Part-time Faculty (Non PTIs)

A temporary part-time faculty member is an employee of an institution or unit within the NSHE who is assigned duties that are considered exempt by the Federal Fair Labor Standards Act (FLSA) regulations and is employed less than halftime. If the appointment is for a period greater than one year, it must be approved by the President or Vice President.

Letter of Appointment – (Salaried) Part-time Faculty with Benefits (Non PTIs)

A faculty member of an institution or unit within NSHE who is assigned duties that are considered exempt by the Federal Fair Labor Standards Act (FLSA) regulations and is employed at .5 Full-Time Equivalent (FTE) or more for a period less than twenty-four months. If the appointment is for a period greater than one year, it must be approved by the President or Vice President. The duration of the appointment may be extended when approved by the President or Vice President.

Letter of Appointment (Hourly) Part-Time Faculty (Non PTIs)

While exempt positions are typically considered salaried by FLSA regulations, there are certain exempt functions that lend themselves to hourly payment for operational reasons. Examples include hourly music instruction, professional services billed on an hourly basis, and exempt level research or project-based work that varies week to week.

FLSA Regulations

The Department of Labor (DOL) made changes related to the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA's minimum wage and overtime pay requirements and to allow employers to count a portion of certain bonuses (and commissions) towards meeting the salary level. Below are the new final rule standards specific to the administrative exemption:

  • Raises the paid "standard salary level" from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);

These guidelines informed the university’s development of a new system and process to correct current and prevent future FLSA violations. Please note that this review does not impact Part-time Instructors (PTIs) or Letters of Appointment Hourly.

Proposed Changes/Adjustments (Current LOAs)

Salary Threshold

For part-time LOAs who do not currently meet the paid FLSA salary threshold of $684 per week or $35,568 annualized salary, departments have the following choices:

  • Increase employee’s paid salary to meet the threshold of $684 per week, based upon the actual percentage of time worked (FTE) as noted in Workday; or
  • Change the employee’s type from LOA to Temporary Hourly, and convert the salary provided to an hourly wage. Note: Hourly wage must be at or greater than the minimum wage, currently $9.00 per hour.  Temporary Hourly appointments are capped at 1,000 hours per fiscal year. Employees in this job family are required to log hours in Workday each day they work.
  • Salary Calculators have been created to assist in determining salary changes.

Duties Test

  • The following choices apply to LOAs who do not currently meet the FLSA duties test as set forth by the DOL.
  • Change the employee’s classification from LOA Salaried to Temporary Hourly, and convert the salary provided to an hourly wage. Note: Hourly wage must be at or greater than the minimum wage, currently $9.00 per hour. Temporary Hourly appointments are capped at 1,000 hours per fiscal year. Employees in this job family are required to log hours in Workday each day they work.
  • Contact your Temp Hire & HCM Support to assist with initiating the job change in Workday.
  • Contact your Compensation Analyst to modify the employee’s position description to include additional duties not covered in the current position description. These additional duties must be factual. HR will assess and notify you whether the new duties meet the DOL’s test.

What You Should Know

  • Human Resources will notify supervisors of the change before notifying the impacted employee.
  • Current LOAs receiving benefits will not lose their medical benefits if moved to a temporary hourly job, as long as their FTE remains at 50% or above and they work a minimum of 130 hours a month. Temporary hourly appointments are not eligible for grant-in-aid. However, exceptions can be made under certain circumstances if the employee has been previously approved or is receiving grant-in-aid for the current semester.  Please contact a benefits representative for more information.
  • If an employee is moved to temporary hourly, the clock starts on the effective date of the move to temporary hourly.
  • The department will need to initiate the job change to temporary hourly if the impacted employee’s duties do not meet the FLSA duties and/or salary tests after conferring with HR. Please contact your Salary Administration Representative if you need guidance.
  • Under the Fair Labor Standards Act ("FLSA"), employers are required to track and record time for non-exempt employees. Supervisors are required to approve hours submitted in Workday, or this task can be delegated to a peer or subordinate if the option is available.

Process for Hiring Letters of Appointments (Salaried) (New LOAs)

The following process and guidelines will be implemented in two phases for hiring new LOA salaried positions:

To ensure the university meets FLSA guidelines for exempt positions, departments must complete and attach the following to the Hire Business Process in Workday:

*This form is an internal document for review by Human Resources which will be used to verify that the essential functions and primary job duties meet the FLSA exempt salary and duties test. Alternatively, you can attach an existing PDQ representative of the LOA’s essential functions in lieu of completing the LOA Job Description form.

  • Standardized Job Descriptions for some LOA Salaried positions engaged in exempt level job duties are included in the Master LOA Descriptions section below:
    • Using standardized job descriptions will ensure letters of appointments are performing exempt level work and will eliminate the need to complete the LOA job description form when hiring.
  • Departments are required to use one of the following: a) applicable standardized job description b) completed Letter of Appointment Job Description form or c) existing PDQ representative of the LOA's essential functions. 
  • Managers are responsible for ensuring equity between their full-time administrative faculty and temporary part-time letters of appointment. To facilitate equity, a salary schedule for letters of appointments (salaried) will be developed to aid in initial salary placement and to maintain consistent pay practices for LOAs across campus.
  • Once implemented, the salary schedule would apply to the hiring of any new salaried LOA's.
  • Letter of Appointment Calculators here

Letter of Appointments (salaried-non PTI) typically perform administrative exempt level work.

Administrative job duties are (1) office or non-manual work, which is (2) directly related to the management or general business operations of the employer or employer’s customers, and (3) a primary component of which involves the exercise of independent judgment and discretion about (4) matters of significance. Independent judgment and discretion involve the comparison and evaluation of possible courses of conduct and having the authority to make an independent choice, free from immediate direction, with respect to matters of significance. Decision making is independent of use of manuals, guidelines, or software packages to make determinations.

Evaluate the following questions before requesting an administrative (salaried) letter of appointment, if you answer “no” to any, the employee/position is likely not exempt and not eligible for such appointment type.

  • Is the employee compensated on a salary basis at a rate not less than $684 per week?
  • Is the employee’s primary duty directly related to the management or general business operations of the university or its customers?
  • Does the employee’s primary duty require the exercise of discretion and independent judgment with respect to matters of significance?
  • Have the authority to formulate, affect, interpret or implement management policies or operating practices?
  • Carry out assignments in conducting the operations of the university?
  • Perform work that affects the business operations to a substantial degree?
  • Have the authority to commit the university in matters that have significant financial impact?
  • Have authority to waive or deviate from established policies and procedures without prior approval?
  • Provide consultation or expert advice to management?
  • Have authority to negotiate or bind the university on significant matters?
  • Be involved in planning long or short-term business objectives?

Benefits Matrix

LOA/Temporary Hourly Appointments
Job Family Group FTE Exempt Medical Coverage Grant-in-Aid Annual /  Sick Leave Retirement Contributions (FICA Alt Plan)
LOA-Salaried

 

50% or greater

If the appointment is for a period greater than one year, it must be approved by the President or Vice President.  Maximum is 24 months.

X

X

X

N/A

X
LOA-Salaried*/**

Below 50%

If the appointment is for a period greater than one year, it must be approved by the President or Vice President.

 X */** X N/A X

LOA-Hourly*/**

Below 50%

X

 */**

X

N/A

X

Temporary Hourly*/**

Capped at 1,000 hrs. in a fiscal year

N/A

*/**

N/A

N/A

X

* Medical coverage will be afforded if employee is working an average of 130 hours per month during NSHE’s Standard Measurement Period (July 1 to April 30). If ACA threshold is met, employee will be offered medical benefits the first of the month following a two month administrative period (60 days). The employee is then able to keep that coverage for a full twelve months (stability period) while employed even if their hours during that time falls under 130 hours per month.

** Medical coverage will be afforded if the intent at their date of hire is to have them work 80 hours a month (20 per week). If PEBP threshold is met, employee will be offered medical benefits on the first of the month concurrent with or following their hire date.

Master LOA Descriptions