Q: Why is this change taking place?
A: On May 18, 2016, the Department of Labor announced the publication of the final rule updating overtime regulations. This rule revised the criteria which determines exemption status under the Fair Labor Standards Act (FLSA).

Q: What effect does this change have on an employee’s benefit status?
A: All employees who will move from exempt to nonexempt status to comply with the new FLSA regulations will be grandfathered with respect to UAB employee benefits. This will allow these employees to keep their existing benefits. Specifically, these apply to:

Vacation accrual rates

  • All employees who will move from exempt to nonexempt status to comply with the new FLSA regulations will continue to accrue vacation at the rate of an exempt employee, based on years of service.
  • If that employee changes positions voluntarily in the future, the grandfathering will no longer apply.
  • If that employee changes positions involuntarily, the grandfathering will still apply.

403(b) Plan UAB employer match

  • Eligible for employer match regardless of current participation status
  • If that employee changes positions voluntarily in the future, the grandfathering will no longer apply.
  • If that employee changes positions involuntarily, the grandfathering will still apply. Details on benefits plans can be found at https://www.uab.edu/humanresources/home/benefits/employee-benefits-overview

Q: When are the payroll-related dates for those employees moving from exempt to nonexempt on Oct. 2, 2016?
A: 
These are the dates for payroll changes for those employees:

  • Last check date as an exempt employee: Sept. 30, 2016 (monthly payroll pay date)
  • First day to clock in using KRONOS as nonexempt employee: first day at work on or after Oct. 2, 2016
  • First check date as a nonexempt employee: Oct. 21, 2016 (assuming they have worked the biweekly period Oct. 2-15, 2016)

The UAB biweekly payroll calendar can be found here.


Please direct questions regarding these FAQs to your manager, personnel officer, HR Consultant or HR Compensation.