1. Fair Labor Standards Act (FLSA)
New Overtime Provisions
Effective Dec 1, 2016

2. New FLSA Overtime Provisions
Previous: All US workers entitled to overtime pay unless exempted because:
Paid fixed, preset salaries
Engaged in executive, administrative or professional duties
Paid at least $23,660/year
New Rule: overtime pay threshold increases to $47,476/yr effective December 1, 2016
Future automatic updates every three years
Affects exempt staff and postdocs
Does not apply to graduate or undergraduate students working towards a degree

3. New FLSA Overtime Provisions
Teaching Exemption
Teachers are exempt if their primary duty is teaching, tutoring, instructing
Can apply to coaches if their primary duty is instructing athletes in how to perform their sport.
Does not apply to postdocs unless >50% teaching
Special Provisions for Academic Administrative Employees (example, Academic Advisor)
primary duty is performing administrative functions directly related to academic instruction or training in an educational establishment.
Paid at least entrance salary for teachers
These exemptions will not be relevant for most units in the College of Medicine

4. Options for responding to changes
Raise salaries to maintain exemption
Pay current salaries, with overtime after 40 hours
Adjust workload and schedules to minimize overtime
Overtime compensation for hours worked over 40 hours is 1.5x regular hourly rate

5. For Additional Information
Guidance for Higher Education, Department of Labor d-guidance.pdf
highereducation2.pdf (fact sheet)
How Overtime Provisions will affect Postdocs
United States Department of Labor: Overtime Pay