FLSA Regulation Update & Implementation Plan

Updated Regulation

On May 18, 2016, the U.S. Department of Labor (DOL) released final regulations that change minimum wage and overtime pay requirements under the Fair Labor Standards Act (FLSA). These changes are significant and affect employees in both the private and public sectors, including the University. Under the FLSA, employees who are not eligible to earn overtime must meet a certain salary threshold. The federal government has set this new threshold at $47,476.  Eligible employees who work more than 40 hours per week will be entitled to overtime compensation.  The new regulations, which take effect on December 1, 2016 will:

  • Raise the overtime salary threshold from $23,660 to $47,476; and
  • Index the threshold to future national salary trends and reset it every three years.

Under FLSA, the new regulations do not include the following categories of employees: bona fide teachers, coaches, students and academic administrative personnel.

UMD Compliance Plan

The University conducted meetings with key stakeholders and formed a task force to study the impact on our campus community. The outcome of this effort follows:

  1. All Full-Time Exempt Staff including Contingent IIs, Research Faculty and Post-Doctoral Associates who currently fall below the salary threshold will receive a salary adjustment to the new threshold of $47,476, effective December 1, 2016.
  2. Part-Time Research Faculty will continue to hold Faculty ranks and be subject to applicable USM faculty policies, but will become eligible for overtime pay at time and a half for hours worked over 40 hours per week. University Human Resources (UHR) will work with units to determine the appropriate resolution for these employees.
  3. Part-Time Staff will be converted from Exempt to Nonexempt status and be eligible for overtime pay at time and a half for hours worked over 40 hours per week.
  4. New position descriptions will be created for any changed positions for Research Faculty and Staff, as warranted.

Funding

In FY2017, the cost of the salary increases for all employees will be centrally funded by the University. A plan for FY2018 and beyond will be developed in the months ahead.

Individuals who are paid through sponsored research funds should understand that this is an unfunded federal mandate.  The University has not received additional contract and grant funding for these salary adjustments.  One-time funds will be provided in FY 2017 to assure that employees will be compensated consistent with FLSA obligations and to ensure no disruption to our research programs.  Beginning in FY2018, Principal Investigators should work with their directors, chairs, and deans to determine a plan to address the increased salary costs to their contracts and grants.

Next Steps

  1. UHR will provide information to units on any impacted employees.
  2. UHR and units will notify directly impacted employees of FLSA changes.
  3. UHR will provide training to any part-time employees and their supervisors on nonexempt status.
  4. UHR will work with units to implement FLSA changes for the pay period encompassing December 1, 2016.

A number of people across the campus have worked together to contribute to our plan to comply with the FLSA in a manner that is fair, equitable, and minimizes disruption. We appreciate their efforts.

For additional details regarding FLSA or UMD’s implementation plan, please visit www.UHR.umd.edu. Questions via email should be directed to UHRCONNECT@umd.edu.

If you wish to speak with someone regarding staff, please contact:

  • Karen McDonald, Assistant Director of Compensation, at 301-405-5650;
  • Kim Colbert, Director of HR Information Services & Compensation 301-405-5664

If you wish to speak with someone regarding faculty, please contact:

  • Mark Arnold, Director of Faculty Initiatives, Office of Faculty Affairs, 301-405-7604.

Last updated: September 20, 2016

Last updated: September 20, 2016