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ERIC Number: ED598826
Record Type: Non-Journal
Publication Date: 2019-Oct
Pages: 10
Abstractor: As Provided
ISBN: N/A
ISSN: N/A
EISSN: N/A
Available Date: N/A
The Impact of the FLSA Overtime Rule on Higher Education
Nadel, Sarah A.; Pritchard, Adam; Schmidt, Anthony
College and University Professional Association for Human Resources
The U.S. Department of Labor (DOL) enforces the Fair Labor Standards Act (FLSA), which is the law that sets federal minimum wage and overtime pay requirements. The FLSA specifies that for an employee to be considered exempt from overtime pay requirements as a "white-collar" worker, the employee must: (1) be paid on a salary basis; (2) be paid at or above a minimum weekly salary; and (3) perform job duties that DOL finds are consistent with executive, administrative or professional work. In 2004, DOL set the minimum salary threshold for the white-collar exemption at $455 per week, or $23,660 per year. In 2016, DOL set a new threshold, which caused many higher education institutions to realign their exempt and nonexempt employees to meet the new threshold standards. However, just two weeks before the 2016 threshold was to take effect, a federal court issued an injunction preventing DOL from enforcing the new threshold. This meant the 2004 threshold remained in place. In March 2019, DOL proposed a new salary threshold of $679 per week, or $35,308 per year. In September 2019, DOL issued a final rule, which goes into effect on January 1, 2020, and sets the salary threshold for the white-collar exemption at $684 per week, or $35,568 per year. This report details the history of the salary threshold, changes higher ed institutions made based on the 2016 proposed salary threshold, and the implications of the newly updated overtime (OT) rule for higher education. [This report was made possible with the support of PageUp.]
College and University Professional Association for Human Resources. 1811 Commons Point Drive, Knoxville, TN 37932. Tel: 877-287-2474; Fax: 865-637-7674; e-mail: research@cupahr.org; Web site: http://www.cupahr.org
Publication Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: College and University Professional Association for Human Resources (CUPA-HR)
Identifiers - Laws, Policies, & Programs: Fair Labor Standards Act
Grant or Contract Numbers: N/A
Author Affiliations: N/A