Compensation Management

IMPORTANT FLSA (Fair Labor Standards Act) CHANGE

Department of Labor Changes to Fair Labor Standards Act (FLSA) Regulations Effective December 1, 2016

The Fair Labor Standards Act (FLSA) is the federal law that determines whether an employee is eligible for overtime or exempt from overtime (salaried). President Obama signed a directive that asked the Secretary of the U.S. Department of Labor (DOL) to review and update the FLSA with regard to the minimum salary required for employees to meet the executive, administrative, and professional employee exemption. Employees who are not compensated at a level that meets the requirement must be paid time-and-one-half for any hours worked over 40 per week according to federal and state regulation; and Board of Regent’s and University policies and procedures. On May 18, 2016, the Department of Labor (DOL) finalized the changes to FLSA regulations that increase the current minimum salary from $455 per week (or $23,660 per year) to $913 per week (or $47,476 per year) at any FTE.

UPDATE FROM CUPA-HR News

Washington Insider Alert
December 2, 2016

DOL Appeals Judge's Ruling on FLSA Overtime Rule

On December 1, the Department of Labor announced that it will appeal a federal judge's preliminary injunction that halted the implementation of the new FLSA overtime rule changes. Here is a link to the DOL's notice of appeal.

The future of the rule is uncertain at this point. However, Alex Passantino of Seyfarth Shaw LLP, who authored CUPA-HR's white papers on the FLSA overtime rule, has written an article with great information on the status of the rule and thoughts on how employers should handle the situation going forward.

The preliminary injunction, issued by the judge on November 22, was in response to a legal challenge brought by a coalition of more than 50 business groups and 21 state attorneys general.

FLSA RESOURCES

FLSA Update Presentation

Letter from Office of the Commissioner of Higher Education

FLSA Memo to HR Dept Contacts

Wage and Hour Division – Final Rule: Overtime

GUIDANCE FOR HIGHER EDUCATION

GUIDANCE FOR STATE AND LOCAL GOVERNMENTS

Collective Bargaining Agreements

OCHE Fair Labor Standards Act Overview and FAQs

Forms & Resources

View the MUS Pay Plan Compensation Guide

View the Position Title Index & Entry Pay Scale

Role Description Templates

A newly hired employee may not be paid at a higher entry wage rate than the base salary being paid any other employee with the same job title on the campus in which the vacancy exists.

Exceptions may only be permitted when:

A higher salary is necessary to fill the vacancy.
The employment candidate has demonstrably greater qualifications.

Contact

For questions or assistance regarding Performance Reviews & Staff Compensation, please contact:

Sheila Wright
Compensation Manager
406.243.4225