FLSA Overtime Regulations
What is FLSA? Fair Labor Standards Act Enacted by Congress in 1938 Regulates Overtime and Minimum Wage Applies to all US employers Regulations promulgated by the Department of Labor
Key Overtime Provisions Establishes a 40 hour work week Requires timekeeping Overtime compensated at least at time and one-half Broad intent Exemptions based on duties and level of pay Cannot “suffer or permit” employee to work
Compliance There are NO “deals” to waive overtime compensation Public employers can provide compensatory time at time x 1.5 All back pay at time and one-half Liquidated damages up to twice the back pay Employee’s legal fees $1,100 fine per each violation Individual discipline, prosecution, $10,000 fines, prison Loss of Federal funding for education and research
What’s New? Proposed regulations would have raised minimum annual salary threshold for overtime pay exemption from $23,660 to $50,440, effective September 1 Employers, including higher education and CU provided 290,000 comments Final regulations raised threshold to $47,476, effective December 1
Impact Job GroupNumber of Affected Employees Research Faculty573 Postdoctoral Fellows198 Professional Staff196 TOTAL967 Cost up to $6.6 million
Exemptions Professional/Administrative/Executive AND meet salary threshold Physicians/Dentists/Residents Attorneys Teachers Humanities postdocs who teach “Academic professionals” paid more than teachers Graduate Students
NOT Exempt Postdocs PRAs and Research Associates
Management Options Prohibit or limit overtime worked Increase salary to $47,476 Pay overtime
Decision Assistance Department specific data Cost calculator Meetings with departments
Other Considerations Budget FTE Compression Equity NO “Lowball” Change Management Morale Time Tracking (including travel and part-time) , texts and calls “after hours”
Implementation Using My.Leave? Including comp time Timing increases Notifying affected employees and supervisors New paygroups Comp time accrual capped at 240 hours (480 for seasonal)
Future Issues Accelerated/indexed adjustments: 40 th percentile every 3 years NIH will increase awards for postdoc NRSA recipients to more than threshold Questions?