2016 FLSA Update
FREQUENTLY ASKED QUESTIONS REGARDING NEW FLSA CHANGES
What is the FLSA?
The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.
What is changing?
The U.S. Department of Labor recently announced changes to rules regarding how employees are classified under the FLSA. The most significant rule change affects the minimum salary an employee must make before being classified as exempt or salaried. The current salary threshold is $455 per week or $23,660 annually. Effective December 1, 2016, the threshold will increase to $913 per week or $47,476 annually.
What is the difference between exempt and nonexempt?
Exempt employees are salaried and non-exempt are compensated on an hourly basis for their work, and therefore eligible for overtime.
Does this mean that all staff with salaries less than $47,476 will receive a raise to that level?
Not necessarily. Human Resources is reviewing all of the rule changes and will determine whether staff will be re-classified as salaried or hourly (overtime eligible).
Will I continue to make the same wage?
No staff at Swarthmore will experience a reduction in compensation because of the rule change, but it is possible to be re-classified as non-exempt and move to hourly compensation. Human Resources will communicate any changes with affected staff and their managers.
If I am changed from salaried to hourly, what happens if I need to work beyond 40 hours in a week to complete my work?
Non-exempt or hourly staff are eligible for overtime wages if they work more than 40 hours in one week. Managers will work closely with all employees to determine work hours and whether overtime is necessary.
Will my hours be limited?
Managers of nonexempt or hourly staff will work closely with their direct reports to determine work hours and whether overtime is necessary. Non-exempt staff will need to track all hours worked on a weekly basis so that Swarthmore can comply with applicable laws.
Will all co-workers at my level be re-classified as hourly?
Human Resources is reviewing all of the rule changes to determine whether staff with salaries less than $47,476 will receive a salary increase to remain classified as exempt or whether they will be re-classified as nonexempt or hourly. Since staff members -even at the same level - can differ in job functions, Human Resources staff will review each employee’s role to determine any changes to status resulting from the new FSLA regulations.
What else will change for those re-classified as nonexempt or hourly?
Non-exempt or hourly staff report all hours worked each week and may also transition from monthly paydays to biweekly paydays.
Who may I contact if I have any other questions about the new FSLA ruling?
Please speak directly to your supervisor, or feel free to contact Human Resources at ext. 8397.