Department of Labor Regulations on Overtime

Fair Labor Standards Act – legislation that governs minimum wage and overtime Positions are considered hourly unless exemption can be shown. Exemptions – 3 Tests – Must be paid a salary (salary basis test) – Must receive a minimum specified salary (salary threshold test) – Primary job duties must involve executive, administrative, professional duties (duties test) Non-Exempt - Paid overtime – 1 ½ times rate of pay for over 40 hours in a work week The Basics of Overtime

Salary Threshold: Current: $455/week (equal to $23,600/year for full time) New: $913/week (equal to $47,476/year for full time) – 40 th Percentile of full time salaried workers in Lowest Wage Census Region (South) – Will be adjusted every 3 years beginning in – Effective December 1, 2016 What is Changing?

HR meeting with division heads General info. sessions – July 26 and July 28 Identifying exempt positions making less than new salary threshold Determine strategies and costs to comply with new regulations (salary increase, change in overtime status) Other Considerations – vacation, sick leave Communication with staff who will be affected Education for staff and supervisors What is CC Doing?