UPDATE: Impact of Court Injunction on Overtime Changes and Pay Plan Implementation
On November 22, 2016, a federal judge granted a nationwide injunction to delay implementation of the revised overtime regulations. The impact of this injunction on Texas A&M University is as follows:
- Approximately 600 employees were scheduled to change to non-exempt (hourly paid and overtime-eligible) on December 1 due to the salary threshold alone. Those employees are in titles that meet the job duties tests for exemption, but are paid below the proposed new $47,476 salary. These employees will remain exempt on December 1 due to the injunction.
- Some employees in exempt titles were scheduled to receive pay increases on December 1 due to equity adjustments or other reasons. Those will remain in effect and not be changed.
- Some recent new hires were paid hourly from their hire date in anticipation of the December 1 changes. Those positions will remain hourly for the time being, and will be subsequently evaluated for the impact of the injunction on future exempt status.
- The technical process to complete the System-wide Pay Plan implementation will be delayed by a few business days, to allow data files to be adjusted for the changes caused by the injunction. Therefore, the EPA blackout period will be extended to Friday, December 2.
- The System-wide Pay Plan, also scheduled to be effective December 1, will still be implemented. Approximately 475 employees were scheduled to become non-exempt on December 1 due to changes in titles associated with the System-wide Pay Plan. Those title changes to non-exempt status, while unrelated to the salary threshold alone, are being discussed to identify the impact of the injunction, if any. A final determination will be made and communicated as soon as possible.
Communications are being revised to notify the 600 employees remaining exempt. The final reminder to those employees changing to non-exempt is delayed until a determination can be made about the impact of the injunction, if any, on System-wide Pay Plan title exemptions. Human Resources continues to monitor this situation and will respond accordingly to any further changes related to the injunction or other legal actions regarding the overtime regulations.
We currently offer the following resources for the proposed FLSA changes:
- FLSA Overtime Regulation Changes Frequently Asked Questions
- These FAQs help address many of the concerns associated with changing to a non-exempt status for employees, supervisors, and HR Liaisons to review.
- Working Time Issues Frequently Asked Questions
- These FAQs present a variety of case studies that help to explain how overtime works in situations where employees travel, work from home, have flex schedules, and other scenarios.
- Bi-weekly Transition Insurance Premium Details
- Sample Guidelines for Compensatory Leave and Overtime Pay
For further questions, please contact Classification and Compensation by phone at (979) 845-4170 or via a new email addressed dedicated to FLSA and pay plan questions: email@example.com