Increased Overtime Threshold
On December 1, 2016, The Department of Labor’s final rule will extend overtime protection to any employee making less than $47,476 per year, with some job exceptions, such as faculty, adjunct faculty, academic advisors, administrators, and IT. This means that any employee earning less than this salary will be a non-exempt employee and eligible for overtime pay.
FVCC’s staff who are exempt and earning less than $47,476 as of July 1, 2016 will be transitioned to non-exempt status on either July 1, 2016 or December 1, 2016 to comply with the new FLSA rules regarding overtime pay. Impacted employees will be notified of the change to their status in late June.
The goal of the College is to ensure employees understand how the FLSA changes impacts us all. The following resources are to assist employees and supervisors become acquainted with the changes.
The purpose of this DOL’s decision regarding overtime eligibility is to:
- Encourage employers to hire more employees rather than pay overtime premiums
- Provide more income to middle class employees, resulting in economic growth
- Increase payroll tax contributions to Social Security and Medicare
If you would like additional information regarding FLSA, please visit one of the following websites:
Call HR with questions at 756-3841 or Email us at firstname.lastname@example.org
Frequently Asked Questions: FLSA Changes for FY2017
What is the Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act (FLSA) is the federal wage and hour law administered by the U.S. Department of Labor (DOL). It impacts employees in both private and public sectors by establishing minimum wage, overtime pay, and other wage and hour regulations. Employees are either exempt or non-exempt from the FLSA regulations.
What does it currently mean to be exempt or non-exempt?
Exempt employees are excluded from the overtime requirements. Non-exempt employees are paid overtime for time worked in excess of 40 hours in any workweek. For an employee to be classified as exempt, he/she must meet the following three tests:
- Salary Basis Test: An employee must receive a predetermined, fixed salary that is not subject to reduction due to variations in quality or quantity of work performed;
- Minimum Salary Test: An employee must be paid a salary minimum that is currently $23,660 per year ($455 per week); and
- Duties Test: An employee must qualify as an executive, administrative, professional, or computer professional (as specifically defined by the FLSA)
What is changing?
The DOL has issued a final rule that raises the minimum salary for an employee to be designated as exempt from $23,660 per year ($455 per week) to $47,476 per year ($913 per week).
When will these changes become effective?
The deadline for compliance is December 1, 2016.
Are faculty excluded from these changes?
Yes. Under the FLSA, employees are not subject to the salary minimum if their primary duty is teaching, tutoring, instructing, or lecturing, and if they are employed and engaged in this activity as a teacher in an educational establishment.
Can I continue to be an exempt employee by opting out of this change?
No. The exemption criteria are federal law. An employee and employer cannot agree to waive any of the law’s requirements.
How do I track my work hours?
All hours are tracked in ADP. To view a quick video of how to use ADP’s Time & Attendance system please follow the instructions below.
- Login to ADP by going to www.workforcenow.adp.com
- Click on the Support icon towards the top right of the screen
- Under Learning Resources click on ADP Workforce Now Time & Attendance Training
- Under Employee Self Service click on Time & Attendance Learning Bytes for Employees
- Click on Recording Your Total Hours on Your Timecard to view the video
How do I record time off on my timecard?
All time off request should still be submitted as they have been in the past. Those requests will then automatically populate on your timecard. If you need to make an adjustment after a request has been submitted, you need to do that through the time off request and it will again flow to your timecard.
Do I need to enter a pay code in ADP when I enter my hours?
Yes. Please ensure that every line that has hours entered also has the pay code of PROFESSIONAL. The system does not like zeros so leave non work days’ blank.
Will switching from exempt to non-exempt impact an employee’s leave or retirement benefits?
No. This regulatory change will not change an employee’s leave accrual or retirement plan participation.
As a non-exempt employee, can I still work early or late? Can I check emails from home?
Non-exempt employees must make arrangements and obtain approval from their supervisor to work beyond 40 hours in a work week, work from home, or to change their daily schedules to different hours. All time worked must be accounted for and recorded in ADP. All overtime and any alternative work arrangements must be approved in advance by the employee’s direct supervisor.
How is overtime calculated?
All hours worked in excess of 40 hours in a workweek will be paid at one and one half times the employees regular rate of pay. ADP will automatically calculate overtime based off of what is entered on your timecard. With mutual agreement with your supervisor, you may request compensatory time in lieu of being paid overtime wages. To request compensatory time please record hours worked in excess of 40 hours under the pay code COMP EARN.
I’m currently non-exempt and tracking my work hours and recording my work time. How will this change in regulations affect me?
You will not be impacted by the changes in FLSA regulations.