FISCAL NOTE



FUND(S):



Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


Fiscal Note: The fiscal impact could be $26.25 per hour ($197.00 per day) based on the average salary for higher education classified employees for employees occasionally working more than the 37.5 hour workweek to $1,100,000 per holiday, depending on the circumstances. FACTS: There are 4,957 full-time equivalent higher education classified employees with an average salary of $34,140, which converts to $17.50 per hour using 1,950 hours in a work year. The average hourly rate of $17.50 multiplied by 1.5 equals $26.25 per hour. There are two designations of higher education classified employees: (1) Non-Exempt Employees, those who are entitled to overtime benefits as outlined in federal and state law; and (2) Exempt Employees those who are not covered by the Fair Labor Standards Act (FLSA) for overtime purposes.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
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


Explanation of above estimates (including long-range effect):


(1) Non-Exempt Classified Employees: Under current policies and law, non-exempt classified employees who work more than 40 hours per week at the employer’s request, whether during the workweek (Monday through Friday), or on Saturdays and Sundays, are compensated at the discretion of the employee either by (1) being granted 1.5 hours of compensatory time for each hour worked over 40 hours per week; or (2) they are paid 1.5 times their hourly rate for each hour worked over 40 hour per week. If these employees work on a holiday, they are entitled to compensatory time at 1.5 times the number of hours worked or to be paid at 1.5 times their hourly rate. (2) Exempt Classified Employees: Under current policies and FLSA, exempt classified employees are not entitled to overtime pay for working more than 40 hours per week. They are, however, entitled to compensatory time for hours worked on holidays on an hour for hour basis. (3) Legal Holidays: Currently, there are twelve holidays stipulated in W. Va. Code, not counting election days. Pursuant to higher education policies, six holidays are to be taken on the calendar day on which they fall: Independence Day, Labor Day, Thanksgiving Day, Christmas Day, New Year’s Day and Martin Luther King’s Birthday. The remaining six holidays (flexible holidays) may be observed on a different date as determined by the institution president to accommodate the academic calendar. In most cases, these holidays are observed over the Christmas break when classes are not in session.



Memorandum


If HB 3137 were enacted, higher education institutions could potentially be liable to pay 1.5 times the hourly rate of each classified employee working on one of the six “flexible holidays.” Based on the average hourly rate of $17.50 for the 4,957 classified higher education employees, this would result in a fiscal impact of approximately $1,100,000 per holiday ($976,000 in salary costs, plus $146,000 in benefits) if all classified employees are required to work.



    Person submitting Fiscal Note: Terry Hess
    Email Address: hess@hepc.wvnet.edu