New Changes to the FLSA Exemption Rules
On May 18, 2016, the US Department of Labor announced changes to the FLSA overtime exemption rules. The minimum salary threshold required for an employee to be considered as exempt for overtime payment has changed. The current salary threshold is $23,660 and as of December 1, 2016, the new salary threshold will be $47,476.
What does this change to the salary threshold mean?
If you are in a full-time position that earns less than $47,476/yr. and your position is classified as exempt, here are some possible changes that could take place:
- Your pay schedule will change from monthly to bi-weekly.
- If you work over 40 hours a week, you must be paid overtime at the rate of one and a half times your hourly rate.
- Your title and/or duties may change.
- If the budget allows, your salary may be moved up to the new salary threshold to maintain the FLSA exemption of exempt.
Central HR will be working with your department to review those positions that fall below the new salary threshold. Below, please find frequently asked questions for Managers and Employees. If you have a question that is not listed, please first contact your HR Representative or contact Central Office’s Classification and Compensation department.