Georgia Tech Determines Path for Fair Labor Standards Act Rule Implementation
On May 18, 2016, the U.S. Department of Labor announced a rule change to the Fair Labor Standards Act (FLSA) that would extend overtime protections to nearly 5 million workers within the first year of its implementation. The federally mandated date for nation-wide compliance with the new rule set is Dec. 1, 2016. The most notable change for an employee to be considered exempt from overtime was the increase in the minimum salary threshold, from $23,660 annually to $47,476 annually.
Georgia Tech’s executive leadership team, with assistance from GTHR, carefully reviewed job titles, position descriptions and salary levels for all positions and identified those positions for which changes were required by the new FLSA Final Rule Set. Decisions were governed by adherence to federal law and University System of Georgia guidelines.
Ultimately, 949 of Georgia Tech’s employees in 189 titles will experience a shift from exempt (salaried) to non-exempt (hourly) to comply with U.S. Department of Labor regulations. This shift will provide those employees with the wage and hour protection afforded by the legislation. Alternately, some employees (primarily post-docs) will experience an increase in salary to move them to above the new federal salary threshold.
Georgia Tech has officially begun the process of FLSA implementation as part of promoting healthy work-life integration for all of its employees. In the next couple weeks, Georgia Tech Human Resources (GTHR) will meet with unit leadership teams across campus to share job titles and individuals who will be required to convert from exempt to non-exempt and hence to overtime-eligible status.
Detailed information for managers and employees will be available at www.ohr.gatech.edu/flsa. Campus is encouraged to check the website frequently for training dates and other important materials related to the FLSA implementation.
FLSA Implementation Timeline:
- Oct. 17, 2016: Converted employee population begins reporting time as non-exempt (hourly).
- Oct. 31, 2016: Last partial monthly check for new FLSA non-exempt population.
- Nov. 4, 2016: First bi-weekly check for new FLSA non-exempt population.
- Dec. 1, 2016: Increases processed for exempt employees moved to new salary threshold.
- Dec. 1, 2016: Federal Compliance Deadline.
- Dec. 23, 2016: Last check of calendar year for monthly (salaried) and bi-weekly (hourly) employees.