FLSA Update (3-6-2017): Staff Titles “Under Review” Will Remain Exempt
A federal appeal of the overtime regulation injunction has been further delayed until May 1, to provide the incoming Department of Labor and Department of Justice leadership with adequate time to consider the issues. In addition, System-wide Pay Plan titles that were identified as “under review” when the Pay Plan became effective December 1 have been confirmed as remaining exempt from overtime. Although federal legal proceedings have not fully concluded, it does not appear likely that the higher salary threshold for exemption will go into effect. Even if the injunction is lifted, it is possible that the Department of Labor will re-examine the regulations and consider a different threshold. Such a process is lengthy and requires a schedule that includes a public comment period and minimum period of time before implementation.
Therefore, Classification and Compensation has updated the list of titles at http://employees.tamu.edu/compensation/pay-plan/pay-plan-titles/ to indicate the exemption status for those titles previously under review. We are developing communications to departments and those employees in titles that were identified as under review to confirm exemption. In addition, we have identified the employees who were hired with hourly rates in November due to the anticipated 12/1/16 salary threshold of $47,476 for exemption, or in anticipation of the titles changing to non-exempt as part of the pay plan. HR will provide an email to departments to serve as HR approval and supporting documentation for an Employee Payroll Action (EPA) to change such employees to monthly-paid, exempt employees (not eligible for overtime). Departments should coordinate with employees for the effective date of the change, to minimize the transition impact of the change in pay frequency. If you have any questions, contact Human Resources Classification and Compensation at email@example.com or 979-845-4170.
FLSA 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 Fair Labor Standards Act:
- FLSA Overtime Regulation Frequently Asked Questions
- These FAQs help address many general questions we receive regarding FLSA and how exemption status is applied to positions.
- Working Time Issues Frequently Asked Questions
- These FAQs present a variety of case studies and questions that help to explain how overtime works in situations where employees travel, work from home, have flex schedules, and other scenarios.
- Guidelines for travel pay during University business
- Guidelines for volunteers, interns and unpaid internships
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: firstname.lastname@example.org