2016 Changes to Fair Labor Standards Act (FLSA)
Fair Labor Standards Act Latest Development, November 23, 2016
Beginning last May, the Human Resources Department has been engaged in conversation and preparations with campus units, supervisors and employees for the December 1 effective date of the Department of Labor’s Fair Labor Standard Act (FLSA) Final Rule governing overtime pay. The changes outlined in the Final Rule would impact approximately 840 employees, all of whom received notice in late October of the change to nonexempt status of their positions.
There is a new development in the legal challenge to the Final Rule. The Eastern District Court of Texas issued yesterday afternoon a preliminary injunction that prevents the implementation of the Final Rule. The order issued by the court applies nationally and means that the Final Rule will not go into effect December 1, 2016. It is expected that the Department of Labor will quickly appeal this ruling. However, it is uncertain when the legal challenges to the Final Rule will be settled allowing employers to determine a specific plan moving forward.
What this means at present for Colorado State University is the following:
- Increases that have been made to employee salaries as of today for FLSA purposes will remain in effect.
- Intended salary increases for FLSA purposes only, with an effective date of December 1 or currently in process for approval, will be on hold until the legal challenges to the Final Rule are resolved. If a unit wishes to proceed with a salary increase, please contact the Classification and Compensation unit of Human Resources at hr_cca@Mail.colostate.edu.
- Impacted employees who received notice in October of a change to the exemption status of their position will remain exempt until further notice and are not required to complete timesheets nor eligible for overtime pay or compensatory time.
- Human Resources will review the classifications that have been completed and determined to be nonexempt under the proposed Final Rule due to the salary threshold and will communicate with any impacted employee the appropriate exemption status if a change is required due to the injunction on the effective date of the Final Rule.
- The classification work undertaken by the Classification and Compensation unit in Human Resources will continue with a focus on the duties tests to ensure the university is ready when the challenges to the Final Rule are resolved.
Human Resources is appreciative of the partnership and amount of work undertaken by our colleagues at the university to prepare for the implementation of the Final Rule. The work that has been done places us in a good position to comply with what may ultimately result and has led to many positive outcomes regardless of the ultimate conclusion of the Final Rule. Human Resources will communicate any additional developments.
PowerPoint Presentations and Other FLSA Documents
- Employee Session: What Does This Mean for Me?
- Fair Labor Standards Act: Looking to the Future
- FLSA Overtime Cost Estimate Worksheet
- Request for Individual Salary Adjustment Outside the Annual Merit Cycle for Fair Labor Standards Act Purposes Only
Fair Labor Standards Training Sessions Videos
Employee Session: What Does This Mean for Me?
Presentation for Supervisors
General Overview Session: June 8
- Department of Labor - Overtime: It's About Time
- United States Department of Labor Wage and Hour Division Final Rule: Overtime - https://www.dol.gov/WHD/overtime/final2016/
- Fact Sheet: Final Rule: Higher Education - https://www.dol.gov/sites/default/files/overtime-highereducation2.pdf
- Guidance for Businesses: Higher Education Guidance - https://www.dol.gov/whd/overtime/final2016/highered-guidance.pdf