[CED/CD/EAT] Fwd: DOL Raises Overtime Exemption Threshold to $47, 476

Wed May 18 19:53:34 MST 2016

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From: "Castro Harrington, Cristina - (ccastroh)" <ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>>
Date: May 18, 2016 at 12:22:05 PM MST
To: "Antin, Parker B - (pba)" <pba at email.arizona.edu<mailto:pba at email.arizona.edu>>, "Burgess, Shane C - (shaneburgess)" <sburgess at cals.arizona.edu<mailto:sburgess at cals.arizona.edu>>, "Chorover, Jon - (chorover)" <chorover at email.arizona.edu<mailto:chorover at email.arizona.edu>>, "Farrell-Poe, Kathryn L - (kittfp)" <kittfp at email.arizona.edu<mailto:kittfp at email.arizona.edu>>, "Going, Scott B - (going)" <going at email.arizona.edu<mailto:going at email.arizona.edu>>, "Hawley, Jana - (hawleyj)" <hawleyj at email.arizona.edu<mailto:hawleyj at email.arizona.edu>>, "Marsh, Stuart E - (smarsh)" <smarsh at email.arizona.edu<mailto:smarsh at email.arizona.edu>>, "Ratje, Jeffrey M - (jmratje)" <jmratje at email.arizona.edu<mailto:jmratje at email.arizona.edu>>, "Schumaker, Karen S - (schumake)" <schumake at email.arizona.edu<mailto:schumake at email.arizona.edu>>, "Silvertooth, Jeffrey C - (silverto)" <Silver at ag.arizona.edu<mailto:Silver at ag.arizona.edu>>, "Staten, Michael E - (statenm)" <statenm at email.arizona.edu<mailto:statenm at email.arizona.edu>>, "Tabashnik, Bruce E - (tabashnb)" <BruceT at cals.arizona.edu<mailto:BruceT at cals.arizona.edu>>, "Thompson, Gary D - (gdthomps)" <GaryT at ag.arizona.edu<mailto:GaryT at ag.arizona.edu>>, "Torres, Robert Matthew - (rtorres1)" <rtorres1 at email.arizona.edu<mailto:rtorres1 at email.arizona.edu>>, "Wright, Andre-Denis Girard - (adwright)" <adwright at email.arizona.edu<mailto:adwright at email.arizona.edu>>
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Subject: FW: DOL Raises Overtime Exemption Threshold to $47,476

Today, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. The highlights are:

·         The new salary threshold is $47,476 or $913/week.

·         This threshold will update every three years.

·         Employers must implement by December 1, 2016.

·         Unfortunately, there isn’t any special dispensation for postdoc’s but information about how NIH will address this is contained in the announcement below.
A “FLSA Impact Report” dashboard has been developed and is available in UAccess Analytics>Workforce to determine those impacted by department (simply enter the minimum weekly threshold as $913.00).  Please begin to calculate the effect on both your budget and management.  This information will be requested to address the overall impact on the college as well.
Following is college level data from this dashboard which is also available to you at a departmental level.
# of Employees by ABOR Classification

ABOR Code

Count

Annualized Variance Amount

Academic Professional

35

349,677

Classified Staff

204

2,189,844

Postdoctoral Scholar

27

283,872

Service Professional

22

200,415

Grand Total

288

349,677

# of Employees by Variance

Variance Range

Count

$1 - $75

49

$76 - $150

64

$151 - $300

116

Over $300

59

Grand Total

288

Cristina Castro Harrington, SPHR, SHRM-SCP
Director-Human Resources
College of Agriculture and Life Sciences
Our Goal:  Be the most sought-after place to be a part of

The University of Arizona
ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>
(520) 621-9168

From: CUPA-HR [mailto:communications at cupahr.org]
Sent: Wednesday, May 18, 2016 6:31 AM
To: Castro Harrington, Cristina - (ccastroh) <ccastroh at email.arizona.edu<mailto:ccastroh at email.arizona.edu>>
Subject: DOL Raises Overtime Exemption Threshold to $47,476

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DOL Releases New Overtime Rule – Exemption Threshold Raised to $47,476
Colleges and Universities Have Until December 1 to Comply

This morning, the U.S. Department of Labor (DOL) released the final rule increasing the salary threshold for white-collar exemptions to the federal overtime pay requirements under the Fair Labor Standards Act from $23,660 to $47,476. DOL also announced that it will automatically increase the threshold every three years and that employers will need to be in compliance with the new rule by December 1, 2016. CUPA-HR has issued a press statement on this rule which you can see here.<http://CUPAHR.informz.net/z/cjUucD9taT01NjA2NjE5JnA9MSZ1PTEwNjgzMDIwMzkmbGk9MzUzNzc2OTM/index.html>

While there were several reports by the press that the rule would include exemptions for higher education, those reports were false. DOL did not make any changes to the duties test. Francis Collins of the National Institute of Health (NIH) did announce<http://CUPAHR.informz.net/z/cjUucD9taT01NjA2NjE5JnA9MSZ1PTEwNjgzMDIwMzkmbGk9MzUzNzc2OTU/index.html>, however, that NIH will be increasing the individual grant awards under National Research Service Awards (NRSA) for postdoctoral researchers (known as postdocs) to above the new threshold. Its unclear from the announcement whether this will result in a reduction in the number of grants awarded each year.

The text of the final rule<http://CUPAHR.informz.net/z/cjUucD9taT01NjA2NjE5JnA9MSZ1PTEwNjgzMDIwMzkmbGk9MzUzNzc2OTc/index.html> is available as of 8:45 a.m. Eastern time and will be published in the Federal Register<http://CUPAHR.informz.net/z/cjUucD9taT01NjA2NjE5JnA9MSZ1PTEwNjgzMDIwMzkmbGk9MzUzNzc2OTk/index.html> tomorrow. DOL has issued several fact sheets (including materials specific to higher education), a Q&A document and other materials.<http://CUPAHR.informz.net/z/cjUucD9taT01NjA2NjE5JnA9MSZ1PTEwNjgzMDIwMzkmbGk9MzUzNzc3MDE/index.html>

Below are quick facts about the rule:

  *   The new minimum salary threshold has been set at $47,476 per year. The final rule will allow up to 10 percent of the salary threshold to be met by non-discretionary bonuses, incentive pay or commissions, provided these payments are made at least on a quarterly basis.
  *   The threshold will automatically update every three years. Each update will raise the standard threshold to the 40th percentile of full-time salaried workers in the lowest-wage Census region, estimated to be $51,168 in 2020. DOL will post new salary levels 150 days in advance of their effective date, beginning August 1, 2019.
  *   DOL did not make any changes to the duties test.
  *   Employers will need to be in compliance with the new regulations by December 1, 2016.

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