FLSA Overtime Rule Update

FLSA Overtime Rule Update

On Sept. 24, 2019, the U.S. Department of Labor (DOL) announced a change to the Final Overtime Rule under the Fair Labor Standards Act (FLSA). Because of this change, approximately 60 Auburn University employees in positons currently designated as exempt from overtime will have their positions re-designated as nonexempt, or eligible for overtime pay.

The DOL is increasing the Minimum Salary Level threshold required for jobs to retain their designation as exempt from the FLSA regulations. Beginning on Jan. 1, 2020, the threshold will increase from $23,660 per year, or $455 per week, to $35,568 per year, or $684 per week. This change will make at least 1 million American workers eligible for overtime premium, including thousands of employees in higher education. 

AU Human Resources (HR) is in the process of identifying employees whose positions will be converted to nonexempt. For these employees, the following changes will occur on Jan. 1, 2020:

  • They will receive overtime premium (either in the form of premium pay or in compensatory time off) of 1.5 times the hourly rate for all hours worked in excess of 40 hours in the designated workweek;
  • They will be required to keep daily accurate recording of all hours worked, as per DOL guidelines. Most employees will do this through Kronos, the University’s timekeeping system; and,
  • They will be paid biweekly (26 times per year) rather than monthly (12 times per year). 

However, employees and supervisors should also note the following:

  • Leave accrual rates for impacted employees will not change; and,
  • Parking privileges for the current academic year will not change.

In the next few weeks, HR will share additional information with each impacted employee along with his or her supervisor and HR Liaison. HR will also communicate more information in future emails and on our website.

Our HR team is available to help employees and supervisors plan for these changes. Questions or comments should be emailed to univhr@auburn.edu or to the following HR team members:

Last updated: 09/25/2019