FLSA Financial Transition Employee Loan Program

FLSA Financial Transition Employee Loan Program

Welcome to the University of Louisville FLSA Financial Transition Employee Loan Program. We understand the many challenges placed on employees affected by the Department of Labor's new FLSA overtime regulation. Although affected employees will not have a change to their annual salary, transitioning to the new bi-weekly pay cycle and receiving 26 paychecks per year (instead of 12) will have a financial impact on these employees.

Therefore, we are offering an optional, no-interest, short term loan for impacted employees who may want to ease the financial impact of the transition. This loan is tax free.

This program is only available to active, impacted employees who have been notified by Human Resources that they will become eligible for overtime (and therefore transitioning to non-exempt) under the Department of Labor's new FLSA Overtime regulation on December 1, 2016.

Transition and Financial Impact Information

To learn more about what kind of impact this transition will have on your paycheck, view the Employee Information Session presentation. You can also view the transition calendar for information about the new pay periods / paydays during this transition.

Eligibility

  • Must be an active employee who has been notified by HR they become eligible for overtime under the Department of Labor's new FLSA Overtime regulation on December 1, 2016
  • Must be paid bi-weekly
  • Must be in a paid status
  • Employees who have submitted a notice of termination at the time of the request for the loan or prior to disbursement of the loan funds are not eligible

How it Works

  • Loan Amount

    A no-interest loan will be available for eligible employees in the following increments: $250, $500, $750, $1000 or $1500.

  • When will the loan be received?

    If you submit your loan request form by December 9, 2016, you will receive your loan on the December 22, 2016 paycheck. Any loan requests between December 10, 2016 and January 3, 2017 will be on the January 13, 2017 paycheck. January 3, 2017 is the last day to request a loan.

  • Repayment

    Repayment of the loan will begin on your January 27, 2017 paycheck for 26 consecutive pay periods. The repayment terms are as follows:

    If you leave the university for any reason during the repayment period, the remaining balance will be deducted from any pay owed.

  • Deadlines to Request a Loan

    There are 2 loan request and disbursement deadlines:

    1. To receive your loan amount on your December 22, 2016 check, the deadline to submit a request is December 9, 2016.
    2. To receive your loan amount on your January 13, 2017 check, the deadline to submit a request is January 3, 2016.

    Remember, this is a one-time request, so you will want to plan carefully and be aware of the deadlines.

  • Canceling a Loan Request

    To cancel a loan request you must submit a loan request cancellation form. The cancellation deadlines for the December 22, 2016 check is December 7, 2016 and December 29, 2016 for the January 13, 2017 check.