House Bill 2542 Next Steps Board of Governors

House Bill 2542 Next Steps Board of Governors Training August 16, 2017 Patricia Humphries, Vice Chancellor for Human Resources

Agenda • • • Major Changes Important Points to Remember Summary of Options Next Steps Questions HB 2542 - Next Steps 2

SB 2542 • Modified WV Code related to Personnel Administration in WV Public Higher Education o Article 4 – General Administration -Modified o Article 7 – Personnel Generally - Modified o Article 8 – Higher Education Full-Time Faculty Salaries (Modified) o Article 9 – Temporary Classified Employee Salary Schedule (Repealed) o Article 9 A- Classification and Compensation System (Modified) o Article 9 B – Organization Personnel Rules (New) HB 2542 - Next Steps 3

WV Code Chapter 18 B Article 4 • Removed requirement for Commission and Council to staff a Human Resources Division and assigns HR responsibility to “Chancellors” HB 2542 - Next Steps 4

WV Code Chapter 18 B Article 7 o Removed requirement for a statewide integrated higher education human resources system and replaced language to say “establish basic human resources policies applicable to public higher education capable of assisting the governing boards. . ” in meeting a myriad of objectives. o Requires full funding of minimum salary levels for classified employees “providing funds are available” o Removed requirement to allow classified employees to bump lesser senior classified employees during a reduction in force (RIF) o Removes requirement for preferred recall HB 2542 - Next Steps 5

WV Code Chapter 18 B Article 7 o Requires BOG rule on RIF “after consultation with and providing 30 days written notice to applicable staff council” § May layoff incumbent(s) in positions being eliminated § When laying off “some but not all of the positions of the same job title” shall give consideration to an employee’s ü Documented quality of work performance (including disciplinary records) and skills ü Seniority as measured by years of service ü Other factors as determined by the board HB 2542 - Next Steps 6

WV Code Chapter 18 B Article 7 o If institution wants to lay off a more senior employee, may offer a severance package § Severance package value may not exceed value of salary for one year o Eliminated requirement to promote the minimally qualified non-exempt classified employee to vacant non-exempt positions o Requires the Board of Governors develop a rule on Employee Continuing Education and Development o Removed requirement for institutional HR Review every five years by Council, but retained requirement for institutions who are exempted or exempt themselves by notice HB 2542 - Next Steps 7

WV Code Chapter 18 B Article 8 o Added new Section 7 (§ 18 B-8 -7) § After consulting with and providing 30 days written notice to the faculty senate, allows governing board to adopt a rule relating to faculty that preempts any conflicting rule adopted by the commission or the council § BOG rule must comply with all sections of Article 8 relating to faculty and Article 9 B requires notice to Council WV Code Chapter 18 B Article 9 o Repealed Article 9 completely - Temporary Classified Salary Schedule HB 2542 - Next Steps 8

WV Code Chapter 18 B Article 9 A o Modified definitions of Classified and Non-Classified Employee § "Classified employee" or "employee" means a regular full-time or regular part-time employee of an organization who: § (i) does not meet the duties test for exempt status under the provisions of the Fair Labor Standards Act; and § (ii) is not otherwise a nonclassified employee designated pursuant to subdivision (11) of this section: § Provided, That any employee of an organization who “was a classified employee as of January 1, 2017, retains that status unless otherwise deemed a nonclassified employee pursuant to the provisions of subparts (A) through (D) of subdivision (11) of this section. ” HB 2542 - Next Steps 9

WV Code Chapter 18 B Article 9 A o Modified definitions of Classified and Non-Classified Employee § "Nonclassified employee" means, an employee of an organization who meets one or more of the following criteria: § (A) Holds a direct policy-making position at the department or organization level; § (B) Reports directly to the president or chief executive officer of the organization; § (C) Is in a position considered by the president or designee to be critical to the institution pursuant to policies or decisions adopted by the governing board; HB 2542 - Next Steps 10

WV Code Chapter 18 B Article 9 A § (D) Is in an information technology-related position; § (E) Is hired after July 1, 2017, and meets the duties test for exempt status under the provisions of the Fair Labor Standards Act at the time of hire or anytime thereafter; or § (F) Was in a nonclassified position as of January 1, 2017. § Unless otherwise established by action of the institution where employed, a nonclassified employee serves at the will and pleasure of the organization, which authority may be delegated by act of the board. HB 2542 - Next Steps 11

WV Code Chapter 18 B Article 9 B • New Article - WV Code Chapter 18 B Article 9 B • Allows institutional flexibility to adopt personnel rules o First: WVU, MU and WVSOM “or any other organization” that provides notice to the commission or council may: § After consulting with staff council, file a rule or rules to implement articles seven and eight of chapter 18 B § and upon the adoption any rules promulgated by the commission or council under articles seven and eight are inapplicable to the organization. o Second: WVU, MU and WVSOM “or any other organization” that provides notice to the commission or council: may establish a classification and compensation rule that incorporates best human resources practices and addresses certain issues. HB 2542 - Next Steps 12

WV Code Chapter 18 B Article 9 B o Organizational classification and compensation rule must address: § Organization accountability* § Employee classification and compensation* § Performance evaluation* § Reductions in force* § Development of organization policies § Shall use the definitions of classified and nonclassified employees in § 18 B-9 A-2* § Requires “management” meet at least quarterly with representatives of staff council § Provide for an external review of human resources practices at the organization at least once every five years* * Additional requirements for these topics are included in WV Code HB 2542 - Next Steps 13

WV Code Chapter 18 B Article 9 B • WV Code Chapter 18 B Article 9 B (new Article) § and upon the adoption, provisions of Article 9 A and any rule promulgated by the commission or council is inapplicable to the extent it conflicts with the rule of the organization HB 2542 - Next Steps 14

Important Points • Nothing happens automatically – all changes require a process discussion, decision, communication, implementation and notification. • Hierarchy: Federal law, Federal regulation, WV law, WV regulation, rules of the Commission and Council, policies of institution/organization • Rules of the Council/Commission are in effect until formally changed • Policies of the institution/organization are in effect until formally changed HB 2542 - Next Steps 15

Important Points • Weigh the pros and cons, savings or costs of any elective changes in policy • Organizations/institutions may allow more employee protections than provided by law or rule – intentionally or unintentionally • Consider all other handbooks, procedures any other forms or documents that will also need changed. • Changes in policy for exemption from Council/Commission Rules, per Article 9 B, are very prescriptive o Does institution have resources to support rule independence? o Does institution have expertise to develop class and comp programs in house? HB 2542 - Next Steps 16

Summary of Options • Change classified employees to nonclassified o Definition of “Technology Related” o Definition of “Critical” o Annual leave accrual rates o Consideration of Will and Pleasure status o Employee notification • Repeal /revise Reduction in Force/Preferred Recall Policies o RIF policy is required. § Rescind sections on bumping and recall and restate policy § If include performance as a consideration, does the institution have in place procedures/programs to adequately measure work performance? § Are performance management procedures being followed o Employee communication HB 2542 - Next Steps 17

Summary of Options • Modification of polices related to nonexempt classified employee promotion o Be sure all sources are updated § Handbooks § Hiring policies § Affirmative Action Plan § Other HB 2542 - Next Steps 18

Next Steps Institutional Administration • • Understand new flexibilities allowed by WV Code Review existing HR related policies Decide what needs changed and in what order Start process of policy revision ensuring required notifications and comment periods are followed Institutional Board of Governors • Understand legislation • Ensure compliance • Make informed decisions HB 2542 - Next Steps 19

Questions? HB 2542 - Next Steps 20