1. Fair Labor Standards Act Basics and Upcoming Changes
12/6/2018
Fair Labor Standards Act
Basics and Upcoming Changes
May 2016
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2. May 19, 2016. Recording date of this workshop is
12/6/2018
Recording date of this workshop is
May 19, 2016.
Some of the rules and procedures discussed in this workshop are subject to change.
Please check university resources
before relying exclusively
on this recorded presentation.
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3. Objectives FLSA Overview Reason for the Change
Upcoming Changes & Challenges
Who is Impacted & What We Can Do to Prepare
Effective Date of Changes
Non-Compliance
Resources

4. Fair Labor Standards Act (FLSA)
Wage and Hour Division, U.S. Department of Labor (DOL)
Governs overtime pay and exemption from overtime pay
Different than Administrative Professional (AP) exemption from Civil Service
Minimum Wage
Federal $7.25 per hour
Washington State $9.47 per hour
Equal Pay
Record Keeping
Child Labor Standards

5. Why the Change?
March 2014 Secretary of Labor was directed to make changes to the regulations governing exemptions to FLSA overtime pay requirements
July 2015, DOL issued proposed rules changing certain aspects of the exemptions.

6. Overtime Exemption Criteria
Current
December 1, 2016
Must be paid on salary basis
Must earn $455 per week
Must pass “Primary Duties” test*
*as defined by DOL
Must be paid on salary basis
Must earn $913 per week
Must pass “Primary Duties” test*

7. Challenges
Current exempt employees governed by this exemption making less than $913 per week, no longer eligible for OT exempt status.
Hours worked must be tracked
Eligible for overtime pay
May be perceived as a demotion

8. Who is Impacted
Those who are currently exempt from overtime earning less than $913 per week as of December 1, 2016.
For example:
Administrative Professional and Civil Service employees
Research Interns
Faculty Research Positions
Graduate Research Assistants
Special FLSA exemptions: Does not apply to
Those who predominately perform teaching duties
Certain employees in computer-related occupations
Employees engaged in outside sales

9. What Should We Do?
July 2015 HRS provided information to Area Personnel Administrators and Senior Leadership re: proposed changes
February 2016 HRS hosted webinar
Provided Area Personnel Administrators list of those potentially impacted – HR Consultants have worked with 1:1
HRS Attended Dean’s Brown Bag
Collaborating with Graduate School on how to address upcoming changes
Defining processes to be used once change becomes effective
Communicate

10. When Will the Change Be Effective?
“Published” date of final rule May 18, 2016
Effective date December 1, 2016

11. Penalties for Non-Compliance
Willful violations
Criminal penalties of up to $11,000 in fines, up to six months imprisonment, or both, and
Civil penalties of $1,100 per violation.
Employers will be liable to affected employees for
Unpaid minimum and/or overtime wages (back wages),
Plus an equal amount as liquidated damages, and
May also be liable for attorney fees and court costs.

12. Be watchful of………..
Potential for FLSA status change upon promotion, reallocation or change in job responsibilities.
Concerns raised by employees working unusually long hours over extended time period (whether they are compensated or not).
Concerns by employees regarding FLSA status.
Appropriate level of oversight into employee’s work schedule, work practices, and accumulation of overtime.
Employees working side-by-side; one being eligible for and paid overtime, the other is not.

13. Resources U.S. Department of Labor https://www.dol.gov/whd/flsa/
Department of Labor & Industries
Human Resource Services

14. WSU Training Videoconference
12/6/2018
This has been a
WSU Training Videoconference
If you attended this live training session and wish to have your attendance documented in your training history, please notify Human Resource Services within 24 hours of today's date:
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15. Questions?