Fair Labor Standards Act (FLSA) – FAQ
What is the Fair Labor Standards Act Overtime Regulation and why am I now considered a salaried non-exempt employee?
On December 1, 2016 the Department of Labor’s exemption for overtime regulations will change. This regulation may require employees who make less than $913 a week or $47,476 a year to be reclassified as non-exempt. Being classified as non-exempt means you are now entitled to receive overtime pay at one and a half times your hourly rate for all hours worked over 40 in a week.
University Implementation
What is the plan for Grand Valley’s implementation of the law?
The university has done an extensive analysis on the impact of this regulation on our AP staff that make less than the minimum salary threshold. However, due to legislative challenges as well as 2 lawsuits against the Department of Labor, we are not issuing any communication to staff that may be impacted by this regulation until we have more information. While it is possible the court could delay, modify or overturn the new salary threshold, such an outcome is speculative and uncertain. Therefore, we are still planning to be in compliance with the new rule byDecember 1, 2016 and we will issue additional information as it becomes available.
What is being done to address salary compression that this may create?
As has been the case in the past, GVSU will continue to monitor salary compression and work with individual Deans and Appointing Officers to address these challenges.
How will the FLSA affect current flex time practice?
For staff with a flexible schedule, Grand Valley does not need to require them to sign in for each start and stop work time. An employer could allow an employee to just provide the total number of hours worked each day, including the number of overtime hours, by the end of each pay period.
Who will make the decision as far as implementation is concerned?
Human Resources has been consulting with Deans and Appointing Officers for recommendations on how to best address overtime issues within each division. The recommendationshave been considered by Human Resources, Budget Committee and the President’s Cabinet and will be implemented by the December 1 deadline if the court decision is to move the regulation forward as scheduled.
Communication
How many total AP staff are affected?
While this is a fluid number, there are approximately 877 AP staff and approximately 206 are affected by changing to a non-exempt category. This number includes regular AP staff, 12 month adjunct AP staff and less than 12 month adjunct AP staff.
How do you know if you are affected by FLSA?
The new salary threshold to be exempt from overtime is $913 per week or $47,476 for a full year. If an AP staff member’s salary is below this threshold, they may be entitled to overtime unless they fall under an exemption such as teaching exemption, academic administrative exemption, or outside sales.
Teaching Exemption. Grand Valley faculty are exempt from the overtime rule. Athletic Coaches also may be exempt if their primary duty is teaching (instructing athletes in how to perform their sport).
Academic Administrative Personnel Exemption. Academic counselors, advisors and intervention specialists and others with similar responsibilities are subject to a special salary threshold. These professionals are exempt from overtime if they are paid at least as much as the entrance salary for teachers at their institution. (GVSU’s 12 month affiliate faculty beginning salary is $44,200).
Will people that are not affected receive communication?
When the court issues their decision on the legal challenges against the Department of Labor, an e-mail will be sent to all AP staff informing them of the decision. Additional e-mail notifications will be sent to AP staff who are now eligible for overtime as well as instructions on how to track their hours. Staff receiving an adjustment to meet the salary minimum threshold will also be sent an e-mail notification. Impacted staff will be notified by Human Resources via e-mail prior to December 1, 2016.
If this law is implemented how will this impact GVSU’s future hiring practices?
Every new or vacated AP position will continue to be reviewed by Human Resources for the correct FLSA exempt or non-exempt classification.
Will this be implemented across the institution in the same way? (will every department have to respond in the same way?)
The criteria issued by the Department of Labor regarding exempt and non-exempt classifications will be consistently applied.
How will AP staff eligible for overtime track their hours?
Our Payroll Office has been working closely with Ultratime to develop an easy and efficient way to collect overtime hours and stay in compliance with the overtime regulation. The system will be preprogrammed with each staff members’ regular weekly schedule. Only exceptions to your regular schedule will need to be entered on the Ultra Time system. If you work additional hours and/or take vacation time you will enter those exemptions into the system. If you have no changes to your schedule and you don’t work over 40 hours in a week you will be paid your normal salary.
Do I have to clock in and out?
No, you do not have to clock in and out. Your normal weekly schedule will be in Ultratime and it will populate the normal hours you work each day. You only need to enter any overtime or vacation time you use during the week.
What are the legislative updates that can be shared or summarized?
You can find additional FAQs and information about the FLSA overtime regulation at the link below: