On May 18, 2016, the U.S. Department of Labor released new rules updating the Fair Labor Standards Act (FLSA) overtime regulations. The new rules increase the minimum salary required before an employee can be classified as exempt from overtime pay under the "white collar" exemptions, from $455 per week (~$23,660 annually) to $913 per week ($47,658.60 annually based on FSU's 26.1 pay periods). They also provide for automatic updating of the minimum salary every three years.
FSU worked diligently to prepare campus for the new regulations and worked collaboratively across campus to implement them. The changes went into effect at FSU on November 18, 2016, in anticipation of the December 1, 2016, nationwide effective date. As a result of these changes, more FSU employees became eligible for overtime compensation.
On November 22, 2016, a federal court in Texas temporarily blocked the effective date of the new regulations. Although we do not know what the final outcome of the litigation will be, Florida State University had already communicated our plans and implemented many initiatives to come into compliance with the new regulations.
While we wait for this legal uncertainty to be resolved at the national level, FSU will continue on the path we have been preparing over the last year and proceed with the initiatives we have already communicated and implemented for our employees and departments.
This means that until further notice:
- Employees who have been notified that they are becoming nonexempt (overtime earning) will be nonexempt.
- Employees who have been notified that they are receiving an FLSA-related salary adjustment will receive that adjustment.
- Employees who have been reclassified into new job codes will stay in those new job codes.
- New hires/transfers into exempt (overtime ineligible) job codes must meet the $913 per week minimum for the exempt codes.
We recognize that departments and employees have already taken difficult steps to prepare for the changes. FSU will stay the course based on the information we currently have available (the Department of Labor's published regulation) and the previous measures implemented.
Once we receive concrete and final direction from the courts and federal government, we will further evaluate our classification system and make any additional changes that are necessary. We will continue to keep the campus community updated. In the meantime, there is no change to the implemented initiatives to comply with these new regulations at FSU.
Thank you for your patience and support.
The federal government's legal changes to the FLSA will impact many employees at FSU. Our goal is to minimize the impact on employees and departments as much as possible. The University has developed an approach to implementing these changes that ensures employees are treated fairly and consistently across all campuses.
The materials provided here will help you get informed, understand what is changing, and know where to go with questions.
Key Changes
If you are becoming overtime eligible (nonexempt) as a result of the FLSA changes:
- You will earn overtime compensation (pay or compensatory leave) if you work over 40 hours in a single workweek.
- This doesn't mean that overtime is guaranteed.
- You must have overtime work approved in advance by your manager.
- Your regular rate of pay, benefits, retirement options, sick and annual leave accrual rates, and pay plan (A&P, Faculty, OPS, or USPS) will NOT change.
- You will need to report all hours worked on your timesheet.
- Most nonexempt employees (including A&P nonexempt) will keep their default schedule in OMNI HR, but must adjust their total hours for the day if they vary from their normal schedule, in addition to reporting time off/leave use.
- Nonexempt USPS and some OPS employees will move to "punch time" (recording ins/outs on the timesheet).
Talk to your manager about your department's overtime practices, including: how to request overtime approval, working outside your normal schedule (responding to texts, emails, or calls after hours or over lunch), and timekeeping requirements.
Managers play a central role as FSU adjusts to the new overtime rules. You are likely to be the first person employees come to with questions. You will also need to manage workloads and limit overtime expenses to keep your department's budget balanced.
The materials provided here will help you get informed, understand options for managing overtime, and communicate effectively with your team.
Resources:
Communications
- FLSA Changes - Status Update (11/29/16)
- Legal Challenge to FLSA Changes (11/23/16)
- FLSA Overtime Funding and Dual Compensation (11/10/16)
- FLSA Notifications Sent to Impacted Employees (10/28/16)
- FLSA Training Begins This Thursday (10/24/16)
- FLSA Changes Final Plan (10/24/16)
- Bridge Funding For Postdoctoral Scholar FLSA Changes (9/9/2016)
- FLSA Changes & Postdoctoral Scholars (7/8/2016)
- FLSA Overtime Changes (5/18/2016)
- Update on Proposed Changes to FLSA Overtime Pay (4/5/2016)
- Proposed Changes to Overtime Pay (7/7/2015)
