FAIR LABOR STANDARDS ACT (FLSA) - 2016 CHANGES

What is FLSA?

The Fair Labor Standards Act (FLSA) of 1938 is the United States federal wage and hour law, administered by the US Department of Labor. Among other thing, it establishes the minimum wage and overtime pay, affecting employees in the private and government sectors.

Every employee is covered but some employees are exempt from FLSA regulations and some are non-exempt. The FLSA requires one-and-one-half time the regular rate of pay in overtime be paid for all hours worked over 40 in a work week for non-exempt employees.

What’s Changing?

On May 18, 2016, the US Department of Labor has issued final rule raising the minimum salary threshold from $455 to $913 a week or $47,476 per year.

Who is Affected?

Employees who are below the minimum salary threshold of $913 a week or $47,476 per year will move from exempt to non-exempt.

However, some employees who meet other criteria such as Faculty, Coaches, and Academic Advisors are not subject to salary threshold.

How the change affects you

• Non-exempt employees must account for their time worked. All time worked must be reported in SAP on a bi-weekly basis.

• Overtime must be paid for hours actually worked over 40 in a workweek. Overtime must be approved by a supervisor prior to working it.

• Non-exempt employees are paid bi-weekly. This change is effective in the pay period of 11/20/2016 to 12/03/2016, with pay date of Friday, 12/16/2016 and every other Friday thereafter.

Important Dates

Key Dates

What Happens

November 1-19, 2016

Last monthly pay period; record monthly exception

November 20, 2016

Start of first biweekly pay period; begin recording time worked in addition to exception time

November 30, 2016

Last monthly pay date (reflects November 1-19) (Benefit deductions for the month of November)

December 3, 2016

End of first biweekly pay period

December 16, 2016

First biweekly pay date (reflects November 20 – December 3; Benefit deductions for 1/2 of December)

December 30, 2016 Paid for time worked 12/4 - 12/17 (Benefit deductions for 2nd half of December)