FLSA Changes

FLSA Changes 2016

KEY TERMS


IMPORTANT UPDATE:

The effective date of the FLSA regulatory changes has been postponed by a federal judge. Although appeals are expected to be filed, there is significant uncertainty as to whether and when the FLSA changes will go into effect.


Because the final ruling on the proposed FLSA changes is unknown, Emory's senior leadership has made the decision to postpone the transition of approximately 357 staff employees from exempt to non-exempt until the future of the regulatory changes becomes more clear. Additionally, at this time, Emory has preliminarily decided not to implement the salary increases for those staff positions that were selected to remain exempt. Emory leadership is carefully considering all aspects of this important issue and will communicate further with employees as soon as a final decision is made.

 

arrow  About the Fair Labor Standards Act (FLSA)


The Fair Labor Standards Act (FLSA) is a federal law which determines whether or not a position is eligible for overtime pay. An "exempt" employee is not eligible for overtime pay. A "non-exempt" employee is eligible for overtime pay and must receive time + 1/2 for any hours worked over 40 hours in a work week.

A position may be considered exempt if it meets the following tests:



arrow  What is Changing?


The U.S. Department of Labor is changing the FLSA by raising the salary threshold required to qualify for exemption from overtime to $47,476 per year, an increase from $23,660 per year, effective December 1, 2016.

In response to this change in the federal law, a number of job titles at Emory University have been identified to move from exempt (monthly paid) to non-exempt (biweekly paid/overtime eligible). As of November 27, 2016, employees who are in these job titles will transition to non-exempt. They will:



Annual earnings, vacation/sick leave and benefits are not affected by this change.

It is very important to understand that this change in no way impacts the value of any staff member’s work or the importance of his/her contributions to Emory University. Emory is responding to a change in federal law and is required to be in compliance.


arrow Guiding Principle


To implement the FLSA changes at Emory University, the Human Resources division worked closely with HR leaders from across the campus to identify which job titles would move from exempt to non-exempt. The guiding principle was that pay practices would remain consistent across the University, so that all employees working in the same job title would be classified as either exempt or non-exempt. As a result, some employees with a current salary above the new salary threshold of $47,476 will become overtime eligible because the job title was identified to move to non-exempt.