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The FLSA Overtime Regulations Are Changing December 1, 2016: Colleges and Universities Will be Ready

05/25/2016

We’ve had plenty of time to adapt and now the new rules are clear. Colleges and universities will be ready. In the spring of 2014, President Obama signed a Presidential Memorandum directing the Department of Labor (DOL) Wage and Hour Division to update the regulations governing overtime pay, as the salary threshold at the time was $455 per week, or $23,660 annually, which is below the federal poverty line for a family of four. According to the administration, this created a situation where many workers whom the Fair Labor Standards Act intended to protect were instead classified as exempt.

In response, on July 6, 2015, the DOL published a Notice of Proposed Rulemaking, which suggested a weekly salary threshold of $972 and an annual salary of $50,440. The DOL accepted comments until September 4, 2015, and then reviewed over 270,000 comments from a broad array of constituencies, including small business owners, Fortune 500 corporations, employer and industry associations, individual workers, worker advocacy groups, unions, non-profit organizations, law firms representing both employers and employees, educational organizations and representatives, religious organizations, economists, congressmen and women, federal government agencies, state and local governments and representatives, tribal governments, professional associations and other members of the public.

Click here to read the full Alert.