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Fair Labor Standards Act

Overview

In May of this year the Department of Labor (DOL) announced changes to the Fair Labor Standards Act of 1938 (FLSA), which sets the rules for how employers pay employees. The FLSA governs federal minimum wage levels and which jobs are eligible for overtime, and it defines exemptions from overtime for jobs where the duties meet specific criteria (called Duties Tests), and where the wages exceed certain thresholds.

The DOL raised the new minimum salary level for exempt positions from the current $455 per week ($23,660 per year) to a level of $913 per week ($47,476 per year) and for the first time will automatically update the salary threshold every three years based on inflation or wage growth. These changes will go into effect on Dec. 1, 2016.

The DOL estimates that with this mandate, about 4.6 million employees across the country will become eligible for overtime. Some employees who are now exempt will become non-exempt. The college will be required to pay these employees on an hourly basis and to track their weekly hours so they will be paid any overtime pay due them.

With these changes, the new threshold for a position to be salaried will be $913 per week unless otherwise exempted under FLSA. Employees affected by these changes will be notified by Oct. 21, 2016.

For more information, please visit our FLSA Frequently Asked Questions page.

Schedule

May 18, 2016 Government announces changes
By October 21, 2016

Changes communicated to employees

Late October 2016, watch Inside Davidson for announcement Public informational meetings
December 1, 2016 Changes effective
December 2019 Next round of changes expected

DOCUMENTS AND LINKS

GENERAL DOCUMENTS

DEPARTMENT OF LABOR