Department of Labor announces final rule updating the Fair Labor Standards Act

Published: June 1, 2016 10:00 am

FLSAOn May 18, President Obama and Department of Labor (DOL) Sectary Thomas Perez announced the publication of the DOL’s final rule updating the Fair Labor Standards Act (FLSA).  The DOL expects that the changes to the FLSA will extend overtime pay protections to more than 4 million workers.

The final rule will increase the minimum salary threshold at which a position would be considered “exempt” from overtime pay. The current salary threshold, established in 2004, is $455 per week ($23,660 per year). The final rule increases this salary threshold to $913 per week ($47,476 per year), effective Dec. 1, 2016.

Under the new rule, currently exempt positions that are paid less than $913 weekly ($47,476 annually) would be eligible for overtime pay once the change takes effect, with some exceptions.   Importantly, annualizing an employee’s salary based on partial FTE is not permitted for purposes of meeting the minimum required salary.

Over the past few months, a university-wide, cross-functional workgroup has been monitoring the national discussions related to the regulation and assessing the potential impact. While the university is mandated to implement the federal regulation, the workgroup is finalizing its recommendations to manage the changes and potential impact on UF.

For more information about the new regulation, please visit the Department of Labor website. Additional communications will be forthcoming, but in the meantime, if you have any concerns or questions, please feel free to contact Classification and Compensation at compensation@ufl.edu.

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