Fair Labor Standards Act update
November 2016 Fair Labor Standards Act Federal Court Injunction
A temporary injunction granted Nov. 22 in a federal court lawsuit filed by 21 states and more than 55 business groups will block the implementation of changes to the Fair Labor Standards Act (FLSA), which were to become effective December 1, 2016.
Since that ruling, University leadership has consulted heavily with Purdue’s Big Ten peers and others to try to understand what might be logical steps to move forward. As a result, the University has decided to suspend implementation of its FLSA changes until resolution of this issue becomes clear. Based on detailed conversations, this position is in line with the majority of Purdue’s Big Ten peers. In plain terms, the University is suspending implementing any FLSA-prescribed salary increases and nonexempt employee reclassifications.
May 2016 Fair Labor Standards Act Regulation Updates Announced
The U.S. Department of Labor released updated regulations for the Fair Labor Standards Act (FLSA) on May 18, 2016, and employers must follow these in order to be in compliance. These changes increase the number of employees eligible for overtime pay at the university and across the country.
Eligibility for overtime pay is determined by salary and the type of work an employee performs. Under the new FLSA rules, employees must be classified as non-exempt and will be eligible for overtime pay if their annual salary is below $47,476, up from the previous salary minimum ($23,660). The change becomes effective on December 1, 2016. For more details, please see the Compensation Update issued after the final regulations were published.
The University is working to assess and prepare for the impact of these changes. As decisions are made, employees will be informed.
- What’s Happening: Compensation Update Issue II (May 20, 2016)
- What’s Happening: Compensation Update (April 25, 2016)
- Frequently Asked Questions
If payroll and timekeeping procedures are updated, the changes will be communicated through various training platforms.
FLSA overview from Human Resources