The University of Maryland has been preparing to implement certain pay changes and job reclassifications to comply with an update to the Fair Labor Standards Act that was scheduled to take effect December 1, 2016. On November 22, 2016 a federal judge barred the implementation of the new FLSA regulations updates nationwide, thus halting the December 1, 2016 FLSA changes.
How does this development impact the University of Maryland?
Following this federal court decision, the Maryland Attorney General’s Office has advised University System of Maryland institutions to wait until further notice before implementing any compliance changes to meet FLSA requirements. Accordingly, UMD will continue to operate under the existing FLSA guidelines and will not be implementing the salary adjustments and other changes that would have been required. This impacts the following employees:
- UMD exempt employees who were previously notified they would receive a salary adjustment effective December 1, 2016 will remain at their current salary;
- UMD exempt employees and any faculty that were previously notified they would become eligible for overtime will remain exempt and ineligible for overtime pay.
The University will continue to monitor this situation closely, and will provide additional information as it becomes available. If you have any questions about this ruling or FLSA, please contact:
The Fair Labor Standards Act (FLSA) is a 1938 federal employment law administered by the U.S. Department of Labor. It sets a minimum hourly wage, a 40-hour workweek, overtime rules, timekeeping requirements and child labor standards. The guidelines affect full-time and part-time workers in the private sector and in federal, state and local governments.
The current salary threshold for which employees are entitled to overtime compensation is $23,660. In 2014, President Obama issued a memorandum directing the Department of Labor (DOL) to update and modernize regulations related to the FLSA’s minimum wage and overtime standards.
In May, 2016, the U.S. Department of Labor issued its final regulations which will change the overtime thresholds for all U.S. employees as follows:
- Overtime Final Rule and Higher Education
- Guidance for Higher Education Institutions on Paying Overtime under the FLSA
- Raise the overtime salary threshold from $23,660 to $47,476;
- Index the threshold to future national salary trends and reset it every three years;
- This new regulation does not apply to following categories: Bona Fide teachers, Coaches, Students, and Academic Administrative Personnel.
- The regulations take effect on December 1, 2016.
- FLSA Information Sheet
The University is committed to supporting affected employees, their supervisors and local units as we implement the necessary changes.
Questions regarding FLSA or UMD’s implementation plan 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.
Frequently Used Terms
UMD Compliance Plan
Directly affected Staff, what's going to change for me?
Directly affected Faculty, what's going to change for me?
Managers and Supervisors Questions
Training Plan for Impacted Employees & Supervisors
Exempt Migrating to Nonexempt & Supervisors – Information Sessions
Impact on UMD