2020 FLSA Implementation
On September 24, 2019, the Department of Labor (DOL) issued a new final rule that the salary threshold for exemption at $35,568 per year. The rule is effective as of January 1, 2020.
In 2016, Kansas State University decided to adopt the salary threshold of $47,476 per year for exemption from overtime pay, even though the federal rule that required this threshold was subsequently stayed by a federal court. Since that time, K-State has continued to use the $47,476 threshold for exemption from overtime pay. The University has adopted the threshold in the new final rule, which means that K-State's threshold for exemption from overtime pay will be lowered from $47,476 per year to $35,568 per year. The adjusted threshold will go into effect at K-State on June 14, 2020 (the start of Fiscal Year 2021) for both current employees and new hires.
K-State’s implementation of the adjusted FLSA threshold will occur through June 2020. This implementation will include many partners and relevant dates are outlined below.
|2020 FLSA Implementation Timeline|
February 10- April 10
Position Description Submission Window
The submission window for FLSA position description review has passed. Departments may continue to utilize the PageUp FLSA submission process. Please note that the determination will not be effective with Fiscal Year begin on June 14.
February 10- May 4
FLSA exemption determinations completedCOE reviews submitted position descriptions and determines FLSA exemption eligibility.
|By May 4|
FLSA exemption determinations communicatedCOE communicates FLSA exemption eligibility determinations to unit/college leadership and/or supervisors.
Submit salary and exemption decisionsThe unit/college submits a spreadsheet with salary and exemption decisions for impacted employees to COE.
Decisions communicated to employees & managers
Employees whose position descriptions have been reviewed from FLSA exemption eligibility will receive an email communication for HCS.
|June 14 (FY 2021)|
2020 FLSA Salary Threshold Change Effective
To learn more, please reference the 2020 FLSA Implementation timeline.
If you currently supervise a non-exempt employee who may be impacted by the new FLSA threshold, you will be notified by your unit/college leadership. Consultation meetings between Human Capital Services and Cabinet members/Deans took place between January 20-February 26. During this time, HCS provided Cabinet members/Deans with information and resources to facilitate conversations with supervisors regarding potentially impacted employees.
Supervisors of potentially impacted employees are an integral partner in the FLSA implementation, specifically regarding that positions descriptions accurately reflect employee duties. If you have not been notified by your Cabinet member/Dean, it is likely that you do not supervise potentially impacted employees.
HCS liaisons are an integral partner in the FLSA implementation. HCS will provide Cabinet members/Deans with information and resources including historical Overtime and CompTime earnings and position descriptions for potentially impacted employees. Throughout FLSA implementation, HCS liaisons will be key partners in submitting position descriptions for review through PageUp and the processing of final pay determinations.
A unique process for submitting position descriptions for FLSA review has been created in PageUp. Please review the detailed training guide to learn more.
K-State currently has a number of non-exempt employees. Not every non-exempt employee will be impacted by the FLSA changes. Employees identified as potentially impacted may include those with an annualized base salary between $35,568 and $47,476 and in positions that may meet the Department of Labor’s (DOL) duties tests for exemption. HCS is in consultation with leadership and supervisors to address potentially impacted employees.
2020 FLSA Training & Resources
Two rounds of training will be provided to assist employees with FLSA implementation. In-person, Zoom, and recorded webinars will be available. Registration for scheduled sessions is available in HRIS. You may enroll through HRIS Self-Enrollment to receive immediate confirmation or e-mail firstname.lastname@example.org and include your name, department, employee ID number (required), course title and course date. Enrollment will be confirmed by an e-mail response to the sender.
Round 1: FLSA Implementation Training is designed to assist HCS liaisons and supervisors with an FLSA overview as well as helpful implementation procedures. HCS can provide small group trainings by request.
Round 2: FLSA Implementation Training is designed to assist impacted employees and their supervisors with exemption status changes. The training may include guidance for timekeeping, paid leave, and more. (HCS is partnering with HCS liaisons to develop training content and ensure appropriate procedures are communicated in the training.)
FLSA eligibility is based on the duties of a position. Working from accurate PDs is the best way to ensure correct and legal determinations are made. The risk of making an incorrect determination can be significant – with both monetary and criminal charges in some cases. By requiring up-to-date PDs (reviewed within the last year) that have been confirmed via signature by the employee as well as their supervisor and next level manager, we ensure determinations are well-informed and truly reflective of the position.
Entering PDs into PageUp makes them easily accessible for all appropriate parties and saves time if/when a recruitment is needed in the future, it’s already been built into the platform. Our new process (see HCS website for details) collects “signatures” from the employee, supervisor and next level manager just like a PER-1 form.
No. The Compensation and Organizational Effectiveness team will determine if the position is eligible for exemption under the FLSA; departments will determine whether the position will remain non-exempt or (if determined to be eligible) transition to being exempt.
K-State’s salary threshold for exemption will change to $35,568/yr ($684/wk) on June 14, 2020.
K-State’s salary threshold for exemption will change to $35,568/yr as of June 14, 2020. Until that time, the existing threshold of $47,476/yr will be in effect.
No. No salary decreases are required or anticipated with these FLSA updates.
No. Eligibility for FLSA exemption is not related to or impacted by whether a position is USS or Unclassified.
Not necessarily. The Department of Labor has specific parameters regarding duties that qualify a position for exemption. These duties tests are not related to a work schedule or the necessity of variable working hours.
According to Department of Labor regulations, to qualify for exemption from overtime under the FLSA, all of the following tests must be met:
- The employee must be compensated on a salary or fee basis (as defined in the regulations);
- The employee must be compensated at a rate not less than $684 per week;
- The employee’s primary duty must meet at least one of the DOL’s duties tests.