FLSA

2016 Fair Labor Standards Act (FLSA) Updates

On May 18th, 2016 the U.S. Department of Labor (DOL) released an update to the Fair Labor Standards Act (FLSA) that has raised the exempt status salary threshold from $23,660 to $47,476, effective December 1, 2016. These changes increase the number of employees eligible for overtime pay at the university and across the country.

The University of Louisville has been working on an effective solution for ensuring compliance under this federal law. HR has reviewed all impacted positions with considerable attention on employee morale, annual leave accrual rates, pay frequency, work-place flexibility, pay ranges and other determining factors.

How does this affect the University of Louisville?

During the review process, it was determined some positions will transition from exempt to non-exempt to ensure compliance with this federal mandate. All employees within an affected job title will move to non-exempt, even if their salary meets or is higher than the new salary threshold. Other positions will remain exempt, with adjustments made to the salary if it currently falls below the minimum threshold of $47,476.

When Will These Changes Occur?

Positions becoming eligible for overtime and moving to non-exempt will transition effective December 1, 2016. Any salary adjustments will be effective on December 1, 2016. All current exempt employees will receive a letter beginning September 29 notifying them of what, if any, changes to expect.

Impact to Employees Transitioning to Non-Exempt

Employees will become eligible for overtime when they change to non-exempt. They will not see any changes in their current leave accruals rates, benefits or job title. Impacted employees will be "grand-fathered" in and will keep their current annual leave accrual rates as long as they remain in their current job title. In addition, "grand-fathered" non-exempt employees will also receive one personal leave day to use between November 1 and December 31, 2016 and two personal leave days per calendar year beginning in January 2017.

Non-exempt employees are required to report all time worked, including overtime and leave time. Any time worked up to 40 hours in a workweek will be paid at straight overtime pay and any hours worked beyond 40 hours in a workweek will be paid overtime pay of time-and-a-half. Overtime hours must have supervisor pre-approval. For much more detail on time reporting and overtime pay, please refer to the toolkits and other resources below for supervisors and impacted employees.

FLSA Financial Transition Employee Loan Program

FLSA Update - What is changing? (PDF)

Department of Labor FLSA Ruling Information

Link to updated FLSA presentation
Link to FLSA presentation

Questions?

All exempt employees will be notified via letter beginning on September 29. If you have any questions after receipt of your letter, please contact Business Operations at businops@louisville.edu or 852-7549.

2016 Fair Labor Standards Act (FLSA) New Overtime Rule

On May 18th, 2016 the U.S. Department of Labor (DOL) released an update to the Fair Labor Standards Act (FLSA) that has raised the exempt status salary threshold from $23,660 to $47,476, effective December 1, 2016. These changes increase the number of employees eligible for overtime pay at the university and across the country.

The University of Louisville has been working on an effective solution for ensuring compliance under this federal law. HR has reviewed all impacted positions with considerable attention on employee morale, annual leave accrual rates, pay frequency, work-place flexibility, pay ranges and other determining factors.

How does this affect the University of Louisville?

During the review process, it was determined some positions will transition from exempt to non-exempt to ensure compliance with this federal mandate. All employees within an affected job title will move to non-exempt, even if their salary meets or is higher than the new salary threshold. Other positions will remain exempt, with adjustments made to the salary if it currently falls below the minimum threshold of $47,476.

When Will These Changes Occur?

Positions becoming eligible for overtime and moving to non-exempt will transition effective December 1, 2016. Any salary adjustments will be effective on December 1, 2016. All current exempt employees will receive a letter beginning September 29 notifying them of what, if any, changes to expect.

Impact to Employees Transitioning to Non-Exempt

Employees will become eligible for overtime when they change to non-exempt. They will not see any changes in their current leave accruals rates, benefits or job title. Impacted employees will be "grand-fathered" in and will keep their current annual leave accrual rates as long as they remain in their current job title. In addition, "grand-fathered" non-exempt employees will also receive one personal leave day to use between November 1 and December 31, 2016 and two personal leave days per calendar year beginning in January 2017.

Non-exempt employees are required to report all time worked, including overtime and leave time. Any time worked up to 40 hours in a workweek will be paid at straight overtime pay and any hours worked beyond 40 hours in a workweek will be paid overtime pay of time-and-a-half. Overtime hours must have supervisor pre-approval. For much more detail on time reporting and overtime pay, please refer to the toolkits and other resources below for supervisors and impacted employees.

Questions?

All exempt employees will be notified via letter beginning on September 29. If you have any questions after receipt of your letter, please contact Business Operations at businops@louisville.edu or 852-7549.