Administrative:
http://www.dol.gov/whd/overtime/fs17c_administrative.htm
Professional:
http://www.dol.gov/whd/overtime/fs17d_professional.htm
3
Agenda Topics:
Overview of the Fair Labor Standards Act
Department of Labor Final Rule
Specific Guidance for Higher Education
Next Steps for Managers
• Review Potentially Affected Positions and Employees
to Ensure Compliance with the DOL’s proposed
overtime rules
• Options to Consider
Tools and Resources
Questions
Key Provisions of the Final Rule
The final rule increases the salary
Minimum Salary Threshold will threshold to $913/week; $47,476
Significantly Increase annually.
5
Agenda Topics:
Overview of the Fair Labor Standards Act
Department of Labor Final Rule
Specific Guidance for Higher Education
Next Steps for Managers
• Review Potentially Affected Positions and Employees to
Ensure Compliance with the DOL’s proposed overtime
rules
• Options to Consider
Tools and Resources
Questions
Specific Guidance for Higher Education
Instructors – under the Professional duties exemption
◦ Teachers are exempt if their primary duty is teaching, tutoring, instructing or
lecturing in the activity of imparting knowledge, and if they are employed and
engaged in this activity as a teacher in an educational establishment.
◦ The salary and salary basis requirements do not apply to bona fide teachers.
7
Specific Guidance for Higher Education
Athletic Coaches:
◦ Athletic coaches employed by higher education institutions may
qualify for the teaching exemption.
◦ Athletic instructors who spend more than half of their time
instructing student-athletes about physical health, teamwork, and
safety likely qualify as exempt teachers.
◦ Assistant coaches, for example, who spend most of their time in
unrelated activities, such as recruiting or administrative work, are
unlikely to have a primary duty of teaching.
Postdoctoral Fellows/Scholars
◦ Postdoctoral fellows often meet the duties test for the “learned
professional” exemption
◦ Must also satisfy the salary basis and salary level tests to qualify
for this exemption.
8
Specific Guidance for Higher Education
Resident Assistants
◦ Student residential assistants enrolled in bona fide educational programs
who receive reduced room or board charges or tuition credits from the
university are not generally considered employees under the FLSA, and
therefore are not subject to the FLSA’s wage and hour requirements.
9
Agenda Topics:
Overview of the Fair Labor Standards Act
Department of Labor Final Rule
Specific Guidance for Higher Education
Next Steps for Managers
• Review Potentially Affected Positions and Employees to
Ensure Compliance with the DOL’s proposed overtime
rules
• Options to Consider
Tools and Resources
Questions
Next Steps for Managers:
Review Potentially Affected Positions and Employees
Options:
Supervisors are NOT required to move any employees to the new
threshold. You can leave them at their current rate of pay, and they will
become FLSA non-exempt (overtime eligible) because they no longer meet
the minimum salary threshold. If an employee never works above 40
hours/week, this approach will not cost the institution any additional money.
Review positions that are below the new salary threshold ($47,476)
and determine which ones, if any, you might want to adjust to the
new threshold, so that those positions would remain exempt. This
exercise would be appropriate for positions that are already fairly
close to the new threshold.
Factors for progression within the salary range may be based on external market, individual performance and skill.
13
Agenda Topics:
Overview of the Fair Labor Standards Act
Department of Labor Proposed Changes
Next Steps for Managers
• Review Potentially Affected Positions and Employees to
Ensure Compliance with the DOL’s proposed overtime
rules
• Options to Consider
• Budget Preparation
• Changes to Processes and Procedures
• Managing Culture
Tools and Resources
Questions
Tools and Resources
Office of Human Resources, Classification and Compensation Team
Tracey Yee, Classification and Compensation Manager, 737-5426
Heather Riney, Classification and Compensation Officer, 737-3104
classification.compensation@oregonstate.edu
Website:
http://hr.oregonstate.edu/policies-procedures/administrators/classification-compensation/final-rule-update-
fair-labor