Changes to the Fair Labor Standards Act (FLSA)
- By Jessica Akey
On May 17, 2016, the Fair Labor Standards Act (FLSA), which governs the federal minimum wage and overtime pay requirements, was amended. Below is a brief summary of the changes:
· The salary threshold requirement to qualify as exempt from overtime pay will rise from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).
· The Department of Labor will increase the salary threshold for eligibility to earn overtime pay every three years.
· The new FLSA rules will go into effect December 1, 2016.
Who is impacted at the University of Vermont?
· If you are in a nonexempt title, meaning you are eligible for overtime pay, you will not be impacted by these changes.
· If you are in an exempt title and you currently earn a weekly salary at or above $913, you will not be impacted by these changes, unless your title changes. Where current exempt titles include employees whose salaries are below the threshold, all positions in that title are being re-evaluated relative to the Fair Labor Standards Act duties test. Titles will change for those positions that are no longer considered exempt.
· If you are in an exempt title and currently make a weekly salary less than $913, you may be impacted.
· Generally, full or part time faculty will continue to be exempt, and will not be impacted by these changes.
As a result, the Classification and Compensation team is developing an implementation plan with key stakeholders that includes ongoing communication with managers and impacted employees prior to the effective date. If you would like more information about the FLSA changes, you may visit the Department of Labor website at https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm or view FAQs on the HRS website at http://www.uvm.edu/hrs/