Exempt Earnings Threshold - FLSA

February 10, 2020
Alert

The Department of Labor (DOL) has made a final ruling on the exempt earnings threshold defined in the Fair Labor Standards Act (FLSA). Effective January 1, 2020, the federal annual overtime exemption threshold was updated to $35,568. There were no changes to the duties test required by the regulation or the exemption for teaching based positions. More information can be found here: https://www.dol.gov/whd/overtime2019/. Baylor has been monitoring other universities and awaiting implementation of a final ruling from the DOL. A final ruling was announced in September 2019 and after an internal review of Baylor’s positions and salary levels as well as feedback from divisional leaders, Baylor has align our exempt threshold with the new federal regulation effective January 1, 2020.

This will likely have a minimal impact on current staff and we will not be reducing any salaries of staff paid at our current exempt threshold. Departments now have more flexibility when recruiting for an open, exempt position. Departments will no longer be required to pay $47,500 for the role to remain exempt if it meets the FLSA duties test. Departments will be required to pay at least the new exempt threshold of $35,568 for any exempt positions. Departments should continue to partner with their HR Consultant and Talent Acquisition Specialist to determine an appropriate offer for all candidates taking into consideration market data and internal equity.

Additional information concerning FLSA and exempt/non-exempt resources can be found on the Baylor HR website https://www.baylor.edu/hr/index.php?id=951354.

If you have questions about your role, please reach out to your Human Resources Consultant.

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