Baylor Prepares for Proposed Changes to the National Fair Labor Standards Act

In June 2015, the Department of Labor announced proposed changes to the regulations of the Fair Labor Standards Act (FLSA). These projected shifts in legislation will affect the exempt status and overtime pay requirements for employees nationwide. Baylor Human Resources is working proactively to remain informed of and prepared to implement these changes upon approval from the Department of Labor.

“We value the people who work at this University,” said Randall Brown, manager of compensation and benefits. “For those who will be affected by this change, we want to ensure they are being cared for. In order to do that, communication is key. We want to make sure we are effectively and appropriately communicating with all parties involved, so that everyone understands what’s happening.”

The Department of Labor’s proposal will increase the number of employees who are considered non-exempt from overtime pay, by adjusting the salary threshold for classification. The proposal increases the salary requirement for exempt employees from $455 per week to $970 per week, the equivalent of $50,440 annually.

Over the coming months, Baylor Human Resources will continue collaborating throughout the University and with industry experts to assess the exempt status of employees who meet the newly proposed salary requirement. Although subject to change, the Department of Labor released a notice in November stating the anticipated publishing of the final rules in summer 2016.

“Clear and accurate communication along with a collaborative approach are critical,” said Becky Ivy, director of HR consulting. “We are being proactive and getting as prepared as we can be for the proposed changes. Our goal is to be prepared while remaining as nimble as possible, depending on the final outcome from the Department of Labor.”

In addition to partnering with the Executive Council, deans and supervisors in divisions and departments across the University, Human Resources is collaborating with the Office of General Counsel, Budget and Payroll to ensure an equitable and efficient implementation of the proposed new regulations.

“One of our key roles in HR is to make sure that we’re in compliance with regulations,” Brown said. “Another key role for our team is serving the faculty and staff at the University, not just from a regulatory standpoint but also from a human standpoint. For those who will be affected, they will be appropriately communicated with and prepared prior to any implementation.”