FLSA (Fair Labor and Standards Act) Overtime Rule 2016
December 2, 2016 - Earlier this year the U.S. Department of Labor (DOL) announced changes to the rules used to determine eligibility for overtime under the Fair Labor Standards Act. One change increased the minimum salary employees had to be paid in order to be exempt from earning overtime and was scheduled to take effect yesterday. You may be aware that a federal court recently stopped the rule from taking effect while it considers a lawsuit that challenges the legality of the rule.This announcement explains how the court’s ruling affects some staff and post-doctoral employees in the UNT System.
- Employees who received market-based salary adjustments or market-based reclassifications that resulted in salary adjustments are not affected by the court ruling. These market adjustments were needed and these employees will receive their new salaries as planned.
- Employees whose status changed from exempt to nonexempt in order to comply with the DOL rule change will return to an exempt status as dictated by the court order and as advised by the State Comptroller. This change is effective back to November 27, 2016 and these employees will not be eligible to accrue 1.5 compensatory time.
- Find frequently asked questions.
- Find your Campus HR Team (UNT, UNTHSC, UNT Dallas or UNT System) or the Total Rewards Team, if you have questions.
The FLSA is a federal law that establishes minimum wage, overtime pay, recordkeeping and youth employment standards for employees in the private sector and in Federal, State and local governments. The FLSA is not new – it was first approved in 1938.
- FLSA provisions are administered by the U.S. Department of Labor Wage and Hour Division, which announced a revised rule regarding overtime compensation on May 18, 2016. The rule applies to all businesses and organizations, including universities, in the United States.
- The revised rule increases the overtime exemption salary threshold from $23,660 to $47,476, and is associated to job ranges, not individual salaries. Individuals in jobs with salary ranges starting below the new minimum will be impacted.
- Certain faculty, researchers, teachers and coaches are not impacted; see Page 5 of the FLSA guidelines for higher education.
- The rule is effective Dec. 1; all System components will implement the rule Nov. 27, 2016, the first day of the payroll cycle to include Dec. 1.
- Find FLSA terminology and definitions.
- Download a pdf of this information.
- Find a schedule of FLSA learning sessions.