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K-State Today

October 20, 2016



Update on Fair Labor Standards Act

By Jeff Morris

The U.S. Department of Labor has changed the rules for overtime under the Fair Labor Standards Act, or FLSA. Approximately 480 university employees will be affected by these changes, which will occur by Nov. 20.

Each position affected by the change has been identified. Employees will receive a letter notifying them of any change in status after Oct. 31. We need to update HRIS by Nov. 20 in order to comply with Federal law.

We have provided several resources to answer questions you may have. Read about the updated regulations, review resources for managers, or view a list of frequently asked questions about the FLSA change. I would suggest you start with the FAQs, as they are very informative.

Under the new regulation, the salary threshold for exempt status has been increased from $23,660 to $47,476 per year. This means that employees with salaries less than $47,476, or $913 per week, with the exception of faculty and certain other specific types of employees, will be eligible for overtime. It is important to remember that job titles do not determine exempt status under the FLSA. Status is determined based on whether an employee has a certain salary level and whether their duties meet the criteria for exempt status. The basis for the federal government's change to this regulation is that more workers should be eligible for overtime, unless they qualify for an exemption.

The most important thing to be aware of about this change is that employees who become non-exempt will be:

• Required to track all hours worked; and
• Eligible to receive overtime pay or comp-time.

You may also refer to PPM 4220 to review university policy on hours of work, overtime, overtime pay and compensatory time. As this may be new for many employees and supervisors, we ask that you take time to review the materials.

There will be more communications on this issue, you are encouraged to talk to your supervisor for individual questions.

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