Date Requested:March 03, 2005
Time Requested:01:17 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2005R1432 Intro HB2859
CBD Subject: Holiday & Weekend Overtime Pay
FUND(S)
$1,060,684
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    House Bill, Reference No. 2005R1432, if approved, includes provisions to change overtime and holiday pay for classified staff. It should be noted that under the Federal Labor Standards Act, the 3,505 of higher education classified staff that are considered non-exempt (from overtime) already receive overtime pay similar to the provisions of this bill. However, the bill as drafted appears to incorporate the 1,423 employees currently classified as exempt (from overtime) under the Federal Labor Standards Act.
    
    
    This bill requires payment to any classified employee whose regular workweek is scheduled from Monday through Friday who agrees to perform any work assignment on a Saturday or Sunday. In this case, the employee shall be paid for at least one half day of work for each day he or she reports for weekend work; and if the employee works more than three and one half hours on any Saturday or Sunday, he or she shall be paid for a full day of work for each day.
    
    • Non-exempt classified employees currently receive time and half pay for all hours worked over 40 hours (within a workweek) including nights and/or weekends. The cost to shift to payment for either one-half day or a full day should not be significantly different if one assumes that most overtime is related to weekend work. There is, however, an ambiguity in the bill that specifies paying only a full day for hours worked over three and one-half hours. Under the Federal Labor Standards Act, if an employee works a full 8 hour day in an overtime situation, he or she would be paid time and half and thus receive 12 hours pay (not eight).
    
    • Exempt classified employees are not paid for additional hours worked over 40 hours under the Federal Labor Standards Act. Estimates of the number of exempt classified staff that work weekends at the institutions are not readily available. For the purpose of this estimate, it is assumed that each exempt classified employee is asked to work at least one full weekend day per year for a cost estimate of approximately $210,604.
    
    
    The bill also provides for time and half payroll rates for classified employees working on state holidays. An additional complication arises in respect to the definition of a state holiday under this bill. By rule, public higher education institutions have 6 state holidays that coincide with the statutory legal holidays. The institutions do not take 6 of the other holidays specified in code as legal holidays because of the need to provide access to students who are present on campus during these 6 holidays. Instead each institution selects 6 additional days for holidays.
    
    • Non-exempt classified employees are presently paid the same time and half rate proposed by this legislation (with the understanding that the 6 institutional holidays can be substituted for the state holidays) thus there would be no additional costs.
    
    • Exempt classified employees receive compensatory time off at straight hours. This bill would increase the cost by one half and require payment rather than additional time off for these exempt employees. For the purpose of this estimate, it is assumed that each exempt classified employee would be asked to work at least one full holiday per year. The one half portion of this holiday rate would create a cost estimate of approximately $105,302.
    
    • If the 6 institutional holidays could not be substituted for the 6 statutory holidays, then there would be a significant financial impact. Assuming 6 additional days of pay (at time and a half) for all classified employees would be $850,080.
    
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,060,684 1,060,684
Personal Services 0 1,060,684 1,060,684
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    


Memorandum
Person submitting Fiscal Note:
Patricia W. Hunt
Email Address:
phunt@hepc.wvnet.edu
    There appears to be some ambiguities and inconsistencies with this bill and the Federal Labor Standards Act.
    
    This fiscal note was calculated with the larger estimate (assuming that institutional holidays could not be substituted for statutory holidays). The fiscal impact is significantly less (approximately $315,906 versus $1,060,684) if this substitution can be made.