The U.S. Department of Labor (DOL) has announced changes to the Fair Labor Standards Act (FLSA), raising the salary threshold required to qualify for exemption from overtime to $47,476 per year, an increase from $23,660 per year effective December 1st, 2016.
This is a significant change. A large number of UH staff members is expected to transition from exempt status (i.e. monthly paid) to non-exempt status (i.e. biweekly paid and overtime eligible). The FLSA rule change does not apply to faculty, but it does affect some staff, and post-doc positions.
Please note that this change in FLSA exemption status is not an indicator of professional status change or decrease of the importance of your work. UH is simply required to be in compliance by federal law. The Human Resources department is working closely with leaders in each division to review all positions affected and ensure full compliance of the new changes.
Below is a video from the Department of Labor to help us understand the intent of this change.
All jobs are categorized by an employment classification determined by the FLSA. UH's Compensation Department works within the FLSA guidelines in evaluating the employment classifications of all staff and faculty positions. This takes place during the creation, backfilling, or re-classification of positions.
These classifications are based on several factors such as the actual job duties outlined in the job description, as well as the salary, among other things. Below are the two types of employment classifications:
- Not Eligible for Overtime or Compensatory Time
- Must record exceptions to work (Sick, Vacation, Jury Duty, Bereavement, etc.)
- Eligible for Overtime or Compensatory Time
- Must record all hours worked in addition to absences
If you have additional questions concerning this matter, you may contact Human Resources via email at email@example.com.