Fair Labor Standards Act (FLSA)

FLSA Update

November 29, 2016 - Human Resources has worked over the past several months on analyzing the changes to the overtime rule which was to increase the salary threshold for a position to be considered exempt from overtime. These changes were to be effective December 1, 2016. However, last week a temporary delay of the Department of Labor's FLSA changes has placed an injunction on these changes. Here is what we know right now (courtesy of College and Universities Professional Association for Human Resources (CUPA-HR):

A U.S. District Court judge from Texas issued a preliminary injunction postponing the effective date of the U.S. Department of Labor (DOL)’s overtime rule. The judge issued the injunction in response to a legal challenge brought by a coalition of more than 50 business groups and 21 state attorneys general. The rule was scheduled to go into effect on December 1.

Originally, two lawsuits challenging the rule were filed in federal court on September 20 — the first suit on behalf of 21 state attorneys general and the second on behalf of a group of trade associations and chambers of commerce. On October 12, the states filed an emergency motion to temporarily prevent the rule from taking effect while the court challenge proceeds. On October 19, the judge granted a request filed by the states and the 50 business groups to have their two cases consolidated.

It is expected that DOL will appeal this ruling quickly, however it is uncertain how long the appeal may take. If the preliminary injunction pushes the implementation date from December 1 to past January 20, 2017, then there will be room for the Trump administration to reopen the rulemaking and revise the final rule.  

This injunction has delayed the effective date of the new salary threshold in order to remain exempt from overtime. Keep in mind, this injunction is temporary and could change at any point in time. Human Resources will continue to update as new developments arise.

July 1, 2016 - Michigan Tech University continues to explore options that will mitigate the impact of the Fair Labor Standards Act (FLSA) changes while ensuring the University’s compliance with the federal mandate. Staff who are exempt and currently earning less than $913/week may be transitioned to non-exempt status no later than December 1, 2016 to comply with the new FLSA rules regarding overtime pay. Impacted employees will be notified of the change to their status after a thorough analysis has been completed.

This change does not apply to faculty.

The goal of the University is to ensure employees understand how the FLSA changes impacts us all. In support of these upcoming FLSA changes, Human Resources (HR) is offering the following resources to prepare employees.

Information Sessions

Staff, who are exempt and currently earning less than $913/week, and their supervisors will be invited and encouraged to attend an informational session to learn more about the FLSA changes. Session dates will be announced in Tech Today, on the HR Blog, and will be listed here once set.

Information sessions can also be set up for individual departments of 15 or more. If you are interested in scheduling a session for your department or area, email Heidi Reid at hereid@mtu.edu.

Click here to view the presentation from the September information sessions.

Implementation Timeline

July 2016
Human Resources is working with University Leadership to review positions that will be affected by this change. This work will continue through July to develop a comprehensive guidance and standard when looking at affected positions.

August/September 2016
Educational information sessions will be offered to various campus groups including Directors, Deans, Chairs, Supervisors, and affected employees.

August through November 2016
Positions will be reviewed and employees notified

December 2016
The deadline for full compliance with the revised FLSA regulations is December 1, 2016.