Speak up Be heard: Human Resources

Fair Labor Standards Act (FLSA) salary threshold

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

The FLSA threshold salary threshold for exemption from overtime pay or compensatory time will be raised from $684 per week ($35,568 per year; $1,368 per pay period) to $844 per week ($43,888 per year; $1,688 per pay period). My current salary is will be below the threshold and my department wants to switch me from salary to hourly employee. "As a currently exempt employee, you have been ineligible to receive overtime pay or compensatory time for hours worked over 40 in a workweek. However, due to the recent change in the FLSA salary threshold and the fact that your pay is below this new threshold, your position will now be classified as nonexempt." What are the pros and cons here? 
 

Resolution:

The overarching intent of the Department of Labor’s increase in the FLSA exempt salary threshold is to increase the number of employees eligible for overtime pay. The Labor Department has estimated 1 million employees will be newly eligible for overtime pay beginning July 1, 2024. This can have various implications, but the specific pros and cons can vary based on individual circumstances. If you have any concerns or need further clarification, please contact your HR Representative within your department/college so we can discuss and address any questions you may have.



Increase of pay

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

There is growing concern among many employees at our institution—the issue of low pay. While senior management enjoys comfortable compensation packages, a significant number of our staff are living paycheck to paycheck. Many of our colleagues are single-income earners without the benefit of a partner's additional income, which makes managing the high living costs, such as rent for an apartment, particularly challenging. Arizona's cost of living has steadily risen, placing additional financial strain on employees. As an institution that prides itself on innovation and sustainability, it is crucial to recognize that the well-being of our employees is a fundamental aspect of these principles. Arizona State University has long championed its commitment to "...assuming fundamental responsibility for the economic, social, cultural, and overall health of the communities it serves." We, the employees, are a vital part of this community, and our financial compensation must reflect the increasing cost of living. It is particularly disheartening to note that while millions are allocated to the salaries of individual high-ranking employees, the broader workforce struggles to make ends meet. Many of our colleagues are forced to take part-time jobs to keep up with Arizona’s escalating expenses. This situation is not only unfair but also unsustainable. Despite the visible investments in new infrastructure, there has not been a corresponding adjustment in employee pay. This disparity suggests a misalignment between the university's financial priorities and the needs of its workforce. It is disheartening to feel that our contributions are undervalued, especially when substantial resources are allocated to other areas. Furthermore, it is disappointing that we must repeatedly advocate for a salary increase, even as ASU continues to generate significant revenue from students worldwide. The individuals who support these students and contribute to the university's success have not seen any meaningful change in their compensation. We believe that fair compensation is a matter of equity and essential for fostering a motivated and sustainable workforce. Our dedication and hard work are integral to the university's success. As we look to the future, ensuring that all employees are fairly compensated and valued for their contributions is vital. Thank you for your attention to this important matter. We hope for a thoughtful and timely response that addresses our concerns and demonstrates the university's commitment to its employees.

Resolution:

Thank you for your comment. ASU continues to invest in its people on many fronts. On an Enterprise level, the ASU Operating Budget plans for salaries and wages expense to increase by 11.4% and benefits costs to increase by 10.4% over the FY 2024 budget. ASU has budgeted for and provided salary/merit increases to staff and faculty beginning a few years after the great recession of 2009 up through the Covid-19 pandemic. The University paused salary/merit increases during this time and restarted a salary increase program in the fall of 2021 and each subsequent calendar year since then. In the fall of 2022, the University set a new floor of $20.00 per hour for hourly staff recognizing the rising level of pay for hourly positions in the marketplace – driven by post Covid-19 labor market challenges. ASU’s total compensation philosophy provides the tenants behind what is offered and the associated costs. Base compensation considers what other local employers pay for comparable positions and benefits are likewise structured to be highly competitive while at the same time, have employee cost-sharing that reflects our belief that ASU should absorb benefit cost increases as much as possible. Currently ASU covers approximately 80% of total premium costs to provide the workforce with best-in-class benefits. On an ongoing basis, ASU reviews relevant data to assess changes in labor market indices, pay levels, etc., to ensure we offer competitive pay and benefits – total rewards – that allows us to attract, retain, and reward employees for their important contributions to the institution. Again, thank you for your interest in this important topic.



Please revisit HIP offering

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

As it is, ASU currently offers a Health Incentive Program partnering with Virgin Pulse. The program allows for staff to get a financial bonus for completing activities. While health incentive programs often aim to promote wellness and encourage healthy behaviors, they can inadvertently exacerbate existing disparities and inequities within communities, which I wholeheartedly believe Virgin Pulse is doing. 

One major issue lies in access. As has been regularly discussed in these submissions, not all ASU employees have affordable options for care or groceries. We've seen more and more about the cost of living increasing in this state. Staff being able to take time off to get adequate health care has become more of a challenge all while healthy food options, among with all grocery costs, continue to rise. Consistently, studies have shown that lower economic statuses are disproportionately affected by health risks. Even the discounted cost of gym membership at ASU is too much for many staff. Meanwhile, Virgin Pulse is promoting dressing for visiting other cultures abroad. This is a great cultural awareness approach, but many staff hardly have the opportunity to build sustainable work attire, let alone travel to a new country with a new wardrobe. 

Additionally, this app disproportionately impacts ASU's populations it serves. In addition to the gender pay gap, there strong evidence indicating that women and minority care continues to leave gaps in supporting women's health. While Virgin Pulse provides promotional themes for women and minority care, these do not even scratch the surface of effective care. I ask that HR reviews alternatives that foster the inclusivity that ASU sustains. 

In summary, while Virgin Pulse's health incentive programs has good intentions, their implementation is lacking. I ask HR to review alternative options to ensure ASU does not inadvertently deepen existing disparities and instead promote equitable access to health and wellness resources for all individuals.

Resolution:

From Virgin Pulse: 

We welcome all types of feedback and appreciate your input. Our programs are designed to support a healthy culture and we strive for inclusive best practices. We will continue to evaluate our program offering and continue to grow together.

From ASU Employee Wellness:

Our wellness vendors, like our insurance providers, are managed and funded by the Arizona Department of Administration. We work directly with the State of Arizona to resolve concerns, advocate for employees' needs, and are routinely part of the RFP process when selecting vendors to ensure the voice of the ASU employee is a priority. 



Roth IRA contribution

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

I spoke to someone in HR within the past year that said that the Roth IRA contribution in the 457(b) was not an option because one person in HR decided not to let it be an option. They said that the change would be happening to allow the Roth IRA contribution, but I haven't seen it. Can you please look into this being an option? One of the benefits of working for the university is the increased ability to invest more for retirement and I'd like to be able to take advantage of the Roth IRA option.

Resolution:

 

It has been decided that the after-tax option for the 457 plan will now be allowed. This means that individuals will be able to make after-tax contributions to the plan, which are commonly referred to as Roth contributions. It is important to note that although the plan doesn't function like an IRA, the after-tax contributions will still be referred to as Roth contributions. However, modifications to the system and thorough testing are required before the Roth 457 plan can be integrated into Workday. This process is scheduled to be completed by 2025. Therefore, the after-tax option is expected to be available by January 2025.



New FLSA threshold

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

I am salary exempt and constantly work 60+ and the new FLSA threshold is being raised to $58,656 will take me from a exempt employee to a non exempt employee. I know I will not receive a large enough raise to push me over that new limit. What does this mean for me? Will I have to now keep a timesheet and submit justification for overtime?

Resolution:

"The department’s final rule, which will go into effect on July 1, 2024, will increase the standard salary level that helps define and delimit which salaried workers are entitled to overtime pay protections under the FLSA. Starting July 1, most salaried workers who earn less than $844 per week will become eligible for overtime (comp time) pay under the final rule. And on Jan. 1, 2025, most salaried workers who make less than $1,128 per week will become eligible for overtime pay (comp time). As these changes occur, job duties will continue to determine overtime exemption status for most salaried employees. ASU is actively assessing this ruling and will communicate to the broader ASU community once we have more information.



Cost of living

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

Will ASU consider implementing a cost of living adjustment for employee salaries? Many full-time employees, myself included, are finding it increasingly challenging to make ends meet. Despite the soaring cost of living, our salaries have not kept pace, leaving us struggling financially. It's disheartening to see that an average worker without specialized skills can earn over $15 per hour at a Walmart store, while highly qualified researchers with valuable expertise are only compensated at $20 per hour. With housing costs consuming a significant portion of our income, ASU must address this issue to ensure fair compensation for its employees. Additionally, it's worth noting that while tuition fees for students increase every year, the salaries of staff members remain stagnant, exacerbating the financial strain on employees.

Resolution:

Thank you for your question. ASU sets Staff pay minimums at $20.00 per hour and $42,000 per year for most every full-time and part-time non-exempt and exempt employee, respectively. At the same time, ASU funded a Merit Program for calendar year 2024. ASU continues to monitor changes in the relevant labor markets and plans for wage adjustments based on this and the ability to fund increases from year-to-year. While not directly linked to cost-of-living, monitoring labor market changes – which are influenced by cost-of-living – helps ensure ASU remains competitive.

As an institution of higher learning, ASU recognizes the value of education for students and faculty and staff alike. At the same time, establishing pay ranges and setting employee pay is dependent upon many factors including overall market assessments directly related to what peer organizations pay for similar positions to those at ASU. Education levels factor into that equation however, marketplace values are dependent upon many factors including the supply and demand for labor and market assessments are holistic evaluations notwithstanding the importance of education. ASU’s employee tuition reduction program is intended to make education an affordable option – should employees choose – to increase their personal growth and increase opportunities for career growth within the university.

ASU strives to institutionalize fair and equitable decision-making when it comes to how employees are treated in all aspects of their employment. In situations where fairness issues arise, ASU leadership actively engages stakeholders to evaluate and assess such situations and provide solutions, as appropriate. This has and continues to be the philosophy and approach the university follows.

As a helpful resource, we also encourage you to explore resolved comments and/or questions on the Speak Up Be Heard community page, focusing on compensation: https://staffcouncil.asu.edu/programs/speak-up-be-heard/human-resources

Furthermore, we suggest reaching out to your department or college HR Representative to discuss further. Additionally, you can engage with the Office of Human Resources Business Partners team https://cfo.asu.edu/ohr-partners as an alternate to provide feedback. We appreciate the time you’ve taken to share your concerns and thank you again for your feedback.
 



Questionable promotion and minimal disciplinary actions

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

I am writing to seek clarification and understanding regarding the procedures and criteria employed for internal promotions within our esteemed organization, with a particular focus on directorial positions.

As a dedicated member of our team, I value the principles of transparency and fairness that underpin our organizational culture. However, recent observations have prompted me to inquire about the process through which internal promotions, especially at the directorial level, are conducted.

Specifically, concerns have arisen regarding instances where individuals who have been the subject of multiple complaints and have only received minimal disciplinary actions have been quietly promoted. This occurrence has led to questions about the alignment between our promotion practices and our commitment to fostering an environment of accountability and excellence.

I firmly believe that all employees, regardless of their hierarchical position, should be held to the highest standards of conduct and performance. In light of this, I propose that there be mechanisms in place for employees to provide feedback on upper management, similar to the evaluations that employees undergo themselves. This would not only ensure accountability but also promote a culture of continuous improvement and mutual respect within our organization.

Furthermore, it is imperative that those occupying leadership roles demonstrate not only proficiency in their responsibilities but also exemplify qualities of effective leadership. It is disconcerting when individuals prioritize personal advancement over the fulfillment of their leadership obligations, as this can have adverse effects on team morale and organizational success.

Resolution:


Pay issues

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

It's disheartening to observe how the current structure of pay increases within our institution predominantly benefits those in leadership and management roles, while overlooking the dedicated individuals working tirelessly in lower positions. While some employees may see a slight uptick in their pay, it's often akin to receiving mere spare change, which fails to keep pace with the soaring inflation rates, particularly concerning essentials like rent, groceries, fuel, and other necessities.

Adding insult to injury, we witness higher-ups enjoying substantial bonuses, a stark contrast to the paltry 0.2% pay increase many of us receive, rendering the whole process seemingly futile. Additionally, the disparity extends to the allocation of time off, with senior employees not receiving equitable treatment compared to their newly hired counterparts. This discrepancy leaves longstanding employees feeling undervalued and neglected, as if their years of dedication and service count for naught.

Regrettably, these practices foster a sentiment that our institution, ASU, prioritizes numbers over the well-being of its workforce. The expectation of loyalty from employees becomes increasingly difficult to uphold when the institution itself appears to lack reciprocity. ASU must reassess its approach to compensation and employee recognition, ensuring fairness and equity across all levels of the organization. Only then can we cultivate a culture of inclusivity and genuine appreciation for the hard work and dedication of every individual within our community.

Resolution:

Thank you for your inquiry. Like other organizations, the university has a budget that requires it to allocate funds for various objectives each year and prepare for unexpected expenses. ASU's merit compensation program follows a pay-for-performance approach rather than providing inflation-calibrated or cost-of-living increases. The funding for the merit program aligns with national trends among higher education institutions. The university's leadership strives to offer employees the highest possible salary increases while also keeping its commitment to Arizona students and their families to keep tuition costs low.
Furthermore, we acknowledge your concern regarding vacation allocation. The objective of aligning vacation time is to establish a sustainable work environment in which every employee receives support, regardless of their time at the university. We appreciate your feedback.
 



Cost of living

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

Does ASU plan on raising salaries to combat inflation, align to market value and combat the astronomical rise in cost of living for employees? The cost of everything has risen significantly and salaries do not reflect this. I work full time and am not making enough to make ends meet anymore. What is being done to address this? Your employees are suffering. I see multiple posts about employees voicing the same concern and nothing has been addressed or improved?

Resolution:

Thank you for your feedback. University leadership monitors changes in relevant labor markets and works hard to provide employees with the largest salary increases that resources will allow. Similar to other higher education organizations, the university operates on a budget, and the ability to implement wage adjustments or merit compensation programs varies from year-to-year.



Inadequate Pay = Loss of Educator Talent

Submitted:
Last updated:
Status: Resolved

Comment or issue submitted:

I trust this message finds you well. I am writing to bring to your attention the urgent need for a comprehensive salary reform at Arizona State University. The current challenges faced by our staff in terms of required educational experience, gender pay gaps, and cost of living increases are reaching critical levels, impacting not only individual livelihoods but the overall equity and vibrancy of our university community. The topic of salary has been repeatedly brought to the attention of Staff Council and repeatedly there is a resounding lack of systemic support for staff.

It is commendable that our institution upholds high standards for education and qualifications, as reflected in the academic requirements for various positions. However, it is equally important that the compensation packages for these roles evolve in tandem with the increasing cost of living. Many of our staff members find themselves grappling with financial challenges due to the current salary structure. This is apparent across multiple departments and campus locations.

1. Educational Experience: The requirement of educational qualifications for various positions at ASU is commendable, but it demands a proportional compensation structure. Many dedicated staff members, despite holding requisite degrees (many often demanding a bachelor's degree), find themselves struggling with salaries that do not align with their educational achievements. Similarly, some staff are unable to even afford educational courses at ASU despite the tuition benefits because they cannot afford the reduced tuition cost - creating an equity gap in newly hired educators who can afford and long-serving staff who cannot afford furthering their studies. This continues inequality in educational opportunities. Furthermore, many staff have reached their personal educational goals and thus tuition benefits are an extra cost to a meager salary. Aligning compensation with educational qualifications and furthering benefits is not just about fairness but also about retaining and attracting top talent to further elevate the reputation of our institution.

2. Gender Pay Gaps: It is disconcerting to note that gender pay gaps persist within our university, at every level, and in every department. Please note that salaries at ASU are public information and accessible online in a matter of minutes due to the work and diligence of the State Press. Achieving gender pay equity is not just a moral obligation but a strategic imperative to foster an inclusive and diverse work environment. I urge ASU to conduct their own thorough analysis of gender-related pay and opportunity discrepancies. This analysis should explore not only overall salary averages but also delve into specific roles and departments to identify and rectify any instances where a gender pay gap may exist. Rectifying these disparities will contribute to a workplace where every staff member, regardless of gender identity, feels valued and fairly compensated for their work at ASU.

3. Cost of Living Increases: The rising cost of living in Phoenix, Arizona, is undeniable. Failure to adjust salaries to keep pace with this increase places an undue burden on our staff, hindering their ability to meet basic needs and forcing long-serving staff out the door. The lack of affordable housing options for our staff is a significant concern. Staff members should not have to choose between essential living expenses, medical care, or pursuing further education. I urge the HR department and university leadership to conduct a comprehensive review of the current salary structure, with a specific focus on elevating staff incomes from lower-class designation. Every staff member at ASU should be able to independently afford the median apartment rental cost within Maricopa County while still maintaining a reasonably comfortable lifestyle - we are more than employees working to survive. The impact of this situation is multifaceted, affecting not only the financial well-being of our staff but also their overall job satisfaction and morale. It is crucial to acknowledge that a fair compensation plays a pivotal role in the overall quality of life and job performance. Adequate compensation is not just a matter of financial remuneration but is integral to the well-being, job satisfaction, and morale of our continual workforce and community.

These issues have been raised locally and in governance, yet a comprehensive resolution seems to be continually deferred. This has been brought up to local and university wide organizations, yet it is apparent that no discernable action has been done.

This inaction speaks louder and is heard with more reverberation - ASU does not care that their staff are suffering under inadequate wages.

The consequences of inaction are tangible—staff members making low incomes pick up secondary and third jobs, community members sacrifice healthcare needs, and staff face housing insecurities. The resultant disparities in the workforce are detrimental to the overall success and reputation of our university, forcing long serving personnel to make the difficult decision to leave a school that refuses to support them. Yet time and time again research shows that educators that are paid appropriately for their work are able to focus better and support their students and educational community. As an institution that is proud of it's status in innovation, ASU should be at the front to herald significant educator salary reform to recruit and maintain quality talent. I appeal to you to champion a comprehensive salary reform that addresses these pressing concerns. This is not just an investment in our staff; it is an investment in the future success, diversity, and inclusivity of Arizona State University and educators.

Thank you for your time and consideration. I am optimistic that your leadership will pave the way for a more equitable and thriving university community that staff may be supportive of.

Resolution:


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