ALERT - FLSA New Regulations on HOLD

 

On November 22, a Federal Judge placed a “preliminary injunction” postponing the December 1st effective date of the Fair Labor Standards Act (FLSA) regulations.  This means that U.S. employers, including Wright State, are not required at this time to comply with the salary change threshold of $47,476 related to overtime pay while the courts review and act on a current pending law suit. 

In light of this new development, Wright State has made the decision to halt the movement of “salaried paid employees” below this threshold to “hourly paid employees” as scheduled for December 1st.   In other words, if you were one of the employees who was shifting from salaried to hourly, no changes will be made to how you are paid until there is a resolution of this legal action and/or new guidance is received from the new government administration. 

Furthermore, any submission of vacation pay-outs and changes to your federal and/or state withholdings, direct deposit, other deductions, etc. related to the December 1 transition will be cancelled.  

Human Resources will continue to closely monitor the situation and will keep you informed via the HR website of any further information.  Please feel free to contact the HR Compensation team should you have any questions.

 

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There has been an important federal compensation revision that Human Resources would like to bring to your attention.  The Department of Labor (DOL) has made changes to the Fair Labor Standards Act (FLSA), which controls the federal rules and regulations for compensation of hourly (non-exempt from overtime) and salaried (exempt from overtime) employees.

On May 18, 2016, the DOL released that the salary threshold currently set at $23,660 annually ($455 per week) will change to $47,476 annually ($913 per week) effective December 1, 2016.  This salary threshold is one of the tests used to determine if an employee is non-exempt, and therefore overtime eligible.  Although there are some exceptions such as teaching, for the most part employees earning less than $47,476 annually will need to be classified as hourly, and thus overtime eligible.  In addition, the DOL added an automatic update to this salary threshold, to occur every three years, beginning on January 1, 2020. 

This federal change in the FLSA will impact an estimated 4.2 million employees who are currently salaried in the United States and approximately 300 are WSU employees.