Feature Image

On November 22, 2016 a federal court in Texas issued a temporary injunction that makes it uncertain how the FLSA’s overtime pay exemptions apply to employees who would be impacted by the new rules that were to go into effect on December 1. Because of the court’s temporary injunction, those rules will not go into effect on December 1 as expected.  Therefore the FLSA salary threshold will remain $23,660 ($455 per week).  

In addition, the Commonwealth of Virginia Department of Human Resource Management (DHRM) has indicated that all state agencies must continue to follow the pre-December 1 regulation’s salary threshold of $23,660 until the case is resolved. 

To ensure that it is able to follow the laws that govern how employees are paid under the FLSA, JMU will operate as it has in the past with no new changes until additional information becomes available.

For questions regarding this temporary hold on the recently announced overtime changes, please contact your HR Consultant, call Human Resources at 540/568-7247.

What is the FLSA?

The Fair Labor Standards Act, more commonly known as FLSA, is a federal wage and hour law which was passed in 1938. The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time employees in the private sector and in Federal, State, and local governments. Compliance with the FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor (DOL). 

Recently, the Department of Labor released new guidelines for positions currently classified as exempt. As of December 1, 2016, these positions must earn a higher salary if they meet certain tests that define what is considered exempt work. Whereas the current minimum annual salary is $23,660, the new threshold is $47,476.

Below you will find more general information about the FLSA and upcoming changes.  


What Has Changed with the FLSA?

Under the new rules, employees with a salary under $47,476 ($913 per week) will be designated as “non-exempt” making them eligible for overtime pay when physically working more than 40 hours within the workweek. In addition, the ‘highly compensated worker’ test and some special pay considerations have changed.

Current

 

New (Effective 12/1/2016)

$455 a week or $23,660 a year Salary Level Test $913 a week or $47,476 a year
Salary test set at $100,000 Highly Compensated Worker Test Salary test set at $134,004
Bonus was not included in threshold calculation Special Pay Allows up to 10% of minimum salary to be met by non-discretionary bonuses, incentive pay, or commissions if made quarterly


The University has reviewed all positions currently classified as exempt earning under the new threshold to determine if the job duties meet the exemption test. Employees who will see a change in FLSA status will be notified by Human Resources during the month of November. Directors and Department Heads will be notified in advance.

For questions regarding the overtime changes, please contact your HR Consultant or call Human Resources at 540/568-7247.


Helpful References for Supervisors and Employees

Back to Top