To:           Executive Vice Presidents, Chancellors, Vice Presidents, Vice Chancellors, Vice Provosts, Deans, Directors and Heads of Schools, Divisions, Departments and Offices

From:       Trenten D. Klingerman, Vice President for Human Resources

Date:        May 18, 2016

Re:           FLSA Rule Published

 

The Department of Labor (DOL) published its final rule updating the Fair Labor Standards Act’s overtime regulations today. The rule goes into effect December 1, 2016.

The current salary minimum for exempt employees is changing from $23,660 per year to $47,476 annually. The minimum will be indexed every three years to the 40th percentile of salary earners in the lowest-wage census region.

The DOL has released two additional documents for higher education institutions: Overtime Final Rule and Higher Education and Guidance for Higher Education Institutions on Paying Overtime under the Fair Labor Standards Act. We are in the process of reviewing these to see what further insight is provided.

We are working diligently to assess and prepare for the impact of these changes on the University, including preparing an updated impact analysis, the results of which will be distributed after merit adjustments take place. As decisions are made, we will continue to keep you closely informed.

If you have questions about this information, please contact me; Darrel Castricone, director of compensation; or your regional campus human resources department.