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Indiana University has concluded an audit of its professional employee classification structure, as mandated by the U.S. Department of Labor (DOL), and has reached an agreement with the department involving 50 employees on the IU Bloomington campus.
In May 1999, some 550 professional-rank employees with job classifications of PA09 through PA11 were asked to complete a DOL questionnaire to assure compliance with provisions of the Federal Labor and Standards Act. The act defines employees as exempt or non-exempt from overtime pay and record keeping.
Upon completion of the audit, DOL asked IU to reclassify 50 positions and pay a settlement totaling $60,000 to some of the employees. While the positions have been reclassified as "professional non-exempt (PANE)," all the affected employees will continue to be paid the same monthly salary and receive their current benefits. In addition, they will be eligible for overtime compensation for hours they may work in excess of 40 hours a week, effective Monday (May 28).
IUB has approximately 1,800 professional-rank positions. Nearly 1,000 of those positions fall into the three job classifications that were reviewed.
Andy Heck, assistant vice president for human resources management, complimented DOL officials for the manner in which the audit was conducted.
"We had a cooperative and professional approach with the Department of Labor," Heck said. "We take some reassurance in the fact that the results and the impact of the IU audit were significantly less than that experienced by other universities and public agencies that have undergone this process."
The DOL allowed IU to use outside counsel to conduct the audit, which enabled the university to complete the review process in a shorter period of time and allowed IU's human resources department to continue to provide a normal level of service to employees. Without an outside consultant, the process likely would have lasted much longer, Heck said.
Another reflection of the cooperative relationship between IU and the DOL is the fact that future grievances about overtime pay will be referred directly to the university for resolution. "That's not a typical response with an employer. They have confidence that we're going to solve any issues that might come up from employees," Heck said.
Heck said the university acknowledges that some employees may feel hurt by a change in job classification. "Even though there were some positions whose exemption status was changed, in no way does that reflect on the employees in those positions," he said. "The university exerted all possible efforts to minimize any negative impact on employees whose exemption was changed."While it has not been asked to do so, IU has decided to conduct a voluntary review of similar professional positions at its other campuses.
"We are one employer. We'll be looking at our campuses to ensure consistency and to make sure all employees are being treated fairly," Heck said.
