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A message from University Human Resources regarding updated FLSA overtime regulations

The U.S. Department of Labor has released regulations to become effective December 1, 2016, regarding the salary threshold for employees to be considered exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). The new rule requires an increase in the minimum salary considered exempt from the overtime requirements from $23,660 per year ($455 per week) to $47,476 per year ($913 per week).

The new rule will also require the salary threshold to be automatically updated every three years to reflect wage growth over time.

However, the new rule does not change the duties tests used to determine whether some groups of employees, including academic administrative employees and postdoctoral fellows, are exempt from the salary threshold requirements.

In response to this update, colleges and universities have several options for adjusting eligible employees’ salaries to adhere to the new guidelines, including raising salaries above the threshold, paying overtime when required and limiting employees’ hours to 40 per week.

Ohio University will address the new guidelines by continuing the analysis of current salaried exempt employees who earn below the new salary threshold to determine which employees and job families or sub-families should be converted to non-exempt status or have their salary increased above the new minimum to retain their exempt status.

University Human Resources will also review potential impacts on various policies, internal salary compression and converting the newly non-exempt employees to hourly employees paid on a biweekly frequency. UHR Compensation will work with Planning Units to finalize decisions and to communicate with all impacted employees by the December 1, 2016 deadline.

If you have any questions or concerns regarding the new regulation and its impact on your Planning Unit, please don’t hesitate to contact UHR Compensation at compensation@ohio.edu. 

For more information about the new FLSA overtime regulations, visit the U.S. Department of Labor website or read the fact sheet released by the White House.

To view a Frequently Asked Questions document about how the regulations will affect Ohio University employees, click here