The Fair Labor Standards Act (FLSA) is a federal law regulated by the Wage and Hour Division of the United States Department of Labor (DOL). The Act, or law, regulates wage and hour requirements such as minimum wage, overtime, equal pay, and time reporting requirements.
The law divides employees into those who are exempt from wage and overtime requirements (FLSA exempt) and those who are not (non-exempt). For an employee to be classified as exempt, his or her job must meet three tests: 1) perform job duties that are classified as exempt under the FLSA; 2) be paid on a salary basis; and 3) be paid at least the minimum weekly or yearly dollar amount as mandated by the DOL.
The current minimum weekly dollar amount required to meet the salary test for exempt status is $455 per week or $23,660 per year. In 2014, President Obama tasked the Department of Labor (DOL) with updating the FLSA regulations and in 2015, the DOL released proposed regulations that would increase the minimum salary threshold to be earned by an employee in order for that employee to be exempt from the FLSA overtime requirements.
On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations. The regulations increase the standard salary level to qualify for exemption from the FLSA minimum wage and overtime requirement from $455 per week ($23,660 per year) up to $913 per week ($47,476 per year).
The Department of Human Resources (HR) has been monitoring the proposed regulation changes very closely ever since the DOL proposed changes in 2015. HR has analyzed the impact of the proposed changes and is developing a comprehensive plan for managing the changes for existing positions as well as for ongoing recruitment and hiring efforts.
Additional information regarding the DOL’s final decision as well as the University’s implementation plan will be forthcoming in the following weeks and months.
If you have any questions please direct them to workforce@uconn.edu. We appreciate your attention and patience as we evaluate the changes to the FLSA.
For more information, contact: Human Resources Department at workforce@uconn.edu