The Fair Labor Standards Act (FLSA) is a federal law that governs whether employees are eligible to receive overtime pay. Revisions to the FLSA have been anticipated for some time, and the Department of Labor (DOL) released its final ruling on May 18, 2016, revising the overtime exemption regulations. As a result, some EKU staff positions that are currently identified as exempt from overtime will now need to be identified as non-exempt under the new regulations.
Exempt: An exempt employee is paid on a salary basis (a predetermined amount of money for work performed, regardless of the hours actually worked) and is not required to track time worked. At EKU, exempt employees are paid semi-monthly.
Non-exempt: A non-exempt employee is paid based on actual hours worked, and is required to track all time worked and be paid overtime for time worked in excess of 40 hours in a workweek. At EKU, non-exempt employees are paid bi-weekly.
The changes affect all employers regardless of their size, geography, or type of business. The goal here at EKU is to ensure employees understand how the FLSA changes impact us all.
These new regulations will take effect on December 1, 2016. Human Resources is currently working with University administration across all areas to ensure our compliance with the new regulations.
One of the most significant changes required by the new regulations is that the minimum salary for EXEMPT (executive, administrative and professional) employees will increase from its current $455 weekly/$23,660 annual amount to $913 per week or $47,476 annually for a full-year worker.
This could potentially impact a large number of our staff who are currently exempt from overtime and, if they fall below the new minimum salary, may now become eligible for overtime.
The President’s Council, Provost’s Office, Finance & Administration, Office of Equity & Inclusion, and University Counsel have been involved with the planning for implementation with Human Resources. Meetings have occurred over the last couple of months involving all vice presidents and area directors to begin the review of all impacted job classifications and staff positions. These reviews are currently happening within all areas of the University.
Human Resources is compiling a list of job classifications and staff positions impacted. If your position is affected, you will be notified by your department or college, and you will also receive notification from the Human Resources department. The implementation schedule is still being developed, and the actual date of this notification has not yet been determined.
The Department of Labor has set the effective date of the final rule for December 1, 2016; however, EKU’s actual implementation date may be sooner. Because this is a complex administrative change involving numerous systems changes and communications to those impacted, EKU will decide on an implementation date that works best for all involved.