Kent State University's FLSA Update
Earlier this month, we shared with the university community information about the impact of a rule issued by the U.S. Department of Labor that would have changed the salary level for overtime eligibility, effective Dec. 1. On Tuesday, Nov. 22, a federal judge issued a preliminary injunction that postpones the implementation of the rule, pending a final order from the court.
As a result of this injunction, Kent State University has decided to postpone plans to implement the policies and payroll practices recently announced. We are also canceling the training that had been scheduled for employees and supervisors potentially affected by the new rule.
We will keep you updated on any further developments. In the meantime, if you have any questions, please contact the Human Resources Compensation team at firstname.lastname@example.org.
2016 Changes to the Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) is a federal law administered by the Department of Labor (DOL). Among other things, the FLSA establishes minimum wage and overtime pay affecting employees in the private sector and in federal, state and local governments. In 2014, President Obama tasked the DOL to update and modernize the FLSA regulations related to minimum wage and overtime pay. The DOL issued its final regulations on May 18, 2016.
The changes issued in May increase the number of employees eligible for overtime pay across the country, including at Kent State. All employers must comply with the federal mandate. Eligibility for overtime pay is determined by certain tests of job duties and pay. The changes, effective Dec. 1, 2016, will:
- Increase the salary threshold below which employees are eligible for overtime (non-exempt) from $23,660 a year to $47,476 a year.
- Automatically increase the salary threshold every three years, beginning Jan. 1, 2020.
What Kent State Employees Need to Know
The university has reviewed several options to determine the most equitable solution for employees that will meet the requirements of the federal mandate while maintaining efficient operations throughout our campuses.
Kent State will create a new category of salaried non-exempt employee. Employees in this group will:
- Continue to receive their normal base salary each pay period.
- Continue to report vacation, sick and personal time in the same manner.
- Report time worked over 40 hours per workweek (Sunday through Saturday). Overtime worked will be paid at time-and-a-half on pay after it is worked and the overtime must be approved in advance by the employee’s supervisor.
PLEASE NOTE: There may be positions within the same job title and duties that meet the exemption test, but due to the new salary level ($47,476 annually), those under the threshold will continue to be eligible for overtime until they reach the new threshold.
These changes do not impact all employees. Those who are impacted will be notified by letter in early November.
View the chart (PDF) to find out some of the key dates in this process.