Updates to the Fair Labor Standards Act

FLSA Update - November 28, 2016

On Nov. 22, a U.S. District Court judge issued a preliminary injunction against the FLSA overtime rule, creating uncertainty about the extent and timing of the effective date of the changes to the FLSA overtime rule. In response to this ruling, organizations now have to determine if they will move forward with the changes they have put in place in order to comply with the proposed regulation changes or delay their implementation of those changes until a final ruling has been made.

Baylor University is moving forward and continuing with the implementation of the pending FLSA regulations.

If you have any questions about the FLSA implementation or timeline, please contact askHR at askHR@baylor.edu or ext. 2000.

FLSA Overview

The Department of Labor (DOL) has announced changes to the regulations and requirements of the Fair Labor Standards Act (FLSA). These changes affect the overtime pay requirements of some employees.

Those affected include any employee currently Exempt (Salaried) and under the updated weekly threshold of $913 per week ($47,476 annually). Employees currently paid bi-weekly who are non-exempt are not affected by this update to the FLSA.

The FLSA ensures that employees are properly paid for their time worked. Based on time, duties, and pay, positions are categorized as:
  • Non-exempt (Hourly): paid based on time worked; required to receive overtime pay at a rate of 1½ times the regular rate for hours worked over 40 in a week
  • Exempt (Salaried): paid based on work completion, not required to receive overtime pay; must be paid a minimum salary established by the DOL
Change to FLSA Salary Level

The DOL has made changes to the current FLSA regulations to provide access to overtime pay to more workers.

The DOL is increasing the salary level for "Exempt" (salaried) employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually).

An additional salary threshold has been set for Academic Administrative Personnel. According to the new regulations, "…a special provision allows this requirement to be met if such employees are paid 'on a salary basis which is at least equal to the entrance salary for [full time lecturers] in the educational establishment by which [they are] employed.' To the extent that the entrance salary is below the salary level established in this rule, academic administrative personnel will be exempt if their salary equals or exceeds the entrance salary."

Academic Administrative Personnel are defined as employees in positions with primary duties that consist of "administrative functions directly related to academic instruction or training." Academic administrative personnel are employees who interact with students outside the classroom, such as department heads, academic counselors and advisors, intervention specialists and others with similar responsibilities. They perform work such as administering school testing programs, assisting students with academic problems and advising students regarding degree requirements.

The entrance level salary for Academic Administrative Personnel at Baylor University is $727 per week ($37,812 annually). For more information on Academic Administrative Personnel, please click here.

Changes to Benefits for Employees Moving to Non-Exempt
Dining

An exempt employee currently receives access to the McMullen Faculty Dining Center. Non-exempt employees receive a 50% discount for dining locations in the Student Union Building (SUB) including, but not limited to, Chick-Fil-A, Freshii, and Mooyah. When an employee moves to a non-exempt status, access for the McMullen Faculty Dining Center is discontinued and SUB benefits begin. The SUB benefit will be active for employees moving to non-exempt on their on current ID cards effective Wednesday, November 16th.

All staff moving to a non-exempt status are encouraged to obtain a new ID card in order to receive the appropriate dining discount beginning December 1. Please stop by Parking Services, located in the Speight Parking Garage, at your earliest convenience to request a new ID card. Parking Services is open M-TH, 8-5, FRI, 8-3:30.

Leave Accruals

Annual accrual amounts will remain the same, but the way in which leave hours are accrued will change slightly for employees moving to non-exempt. Leave will accrue for non-exempt employees on a bi-weekly basis effective December 1st. For additional information on how leave will be accrued going forward, please view the Vacation Policy BU-PP 402 and the Sick Time Policy BU-PP 403. Personal Time will continue to accrue based on current scheduled hours per week. For more information on personal time, please view the Personal Time Policy BU-PP 404.
What Happens Now?

Baylor is implementing the changes to the FLSA regulations effective December 1, 2016. If affected by these changes, the employee will receive additional information about the salary or classification change to their position prior to November 20.
FLSA Implementation Timeline

This timeline has been put into place to guide employees through the changes through December 1st.
What Do I Need to Do?

If you are an exempt employee who is moving to non-exempt, you will:
  • Record all actual hours worked on your timecard in BearWeb beginning December 1
  • Obtain your supervisor’s approval before working overtime (over 40 hours per week)
  • Submit your hours worked on a bi-weekly basis in BearWeb for supervisor approval and payroll processing
Visit the Payroll webpage for the bi-weekly pay schedule.

Entering Time into BearWeb
Please click HERE for a short video instructional guide on how to enter time in BearWeb.
Duo Two-Factor

The Duo Two-factor method is required in order to log into BearWeb. If you haven’t already done so, please enroll with Duo by following instructions at baylor.edu/its/2factor.

Additional Resources
Tracking Travel Time for Non-Exempt Employees

Please click on the travel guides provided in the callout box above to help determine how to track travel time as a non-exempt employee. If you have additional questions, please contact your Manager or the HR Service Center at askHR@baylor.edu or 710-2000.

For more information about the University’s travel policy, please click here.