The People Connection - Human Resources
Elizabethtown College is a welcoming and engaging community of caring individuals who are passionate about our mission, “Educate for Service.” Human Resources proudly partners with the College in achieving its strategic goals and mission. We are dedicated to providing benefits, services, and programs to enhance the quality of life for our employees. It is our true commitment to provide proactive approaches that meet the human resources needs of a diverse college community.
Fair Labor Standards Act (FLSA) New Regulations
Human Resources would like to provide information regarding an important federal compensation update. The Department of Labor (DOL) has made changes to the Fair Labor Standards Act (FLSA), which controls the federal rules and regulations for compensation of hourly (non-exempt from overtime) and salaried (exempt from overtime) employees.
This federal change in the FLSA will impact an estimated 4.2 million employees who are currently salaried in the United States and will become effective December 1, 2016.
FLSA Frequently Asked Questions
a. The Fair Labor Standards Act (FLSA) is the United States federal wage and hour law, administered by the US Department of Labor. It establishes the minimum wage and overtime pay affecting employees. Everyone is "covered" but some employees are exempt from FLSA regulations and some are non-exempt. The FLSA requires one-and-one-half times the regular rate of pay in Overtime be paid for all hours worked over 40 in a workweek from non-exempt employees.
a. Exempt positions are excluded from overtime payment. Non-exempt positions are subject to the payment of overtime. Exemption is based on qualifying for all three of the following tests:
- Salary Basis Test – The employee must be paid on an annual salary basis; and
- Salary Level Test – The employee must meet the salary threshold amount that is currently $455.00 per week or $23,660.00 annually.
- Standard Duties Test – Employees’ primary job duty must involve the kind of work associated with exempt executive, administrative, or professional employees.
a. The minimum salary threshold test is changing. The U.S. Department of Labor has announced that the new minimum salary threshold in which a position can be designated as exempt from overtime requirements will be $913.00 per week or $47,476.00 per year and will be effective, December 1, 2016.
a. If an employee’s rate of pay is below the new minimum salary level ($913 per week/ $47,476 annually), that employee must be classified as non-exempt. Employees whose position has been designated as non-exempt will have to account for all their hours worked.
a. To be considered exempt, the employee must be paid $913 per week during the actual months of the appointment.
a. If your position changes from exempt to non-exempt, you will be paid bi-weekly rather than bi-monthly.
a. As a non-exempt employee you are compensated for every hour you work. If you work more than 40 hours in a workweek, you are paid 1 ½ times your base pay for overtime hours
a. Human Resources will perform a position analysis to determine if the duties of the position meet the exemption.
a. A questionnaire designed to collect detailed information about the duties and responsibilities of the position you hold. The collected job data will be used to help evaluate the position for appropriate classification, ensuring that we have a consistent approach.
a. Human Resources will identify positions that will need to be reviewed. Once identified, employees and their supervisors will be contacted. Both the employee and the supervisor will receive a Position Questionnaire to complete along with the most recent job description Human Resources has on file. The completed questionnaire will need to be returned to Human Resources for review.
a. Human Resources anticipates notifying affected employees beginning the week of July 11 and continuing until the end of July.
a. Human Resources anticipates that decisions will be made sometime after Labor Day.
a. Resources are available on the US Department of Labor website.