Complying with the New FLSA Overtime Rules - An Action Plan for Higher Education Institutions (EDU662K)

Presented By: Erin E. Dolly
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Event Details
  • Pre-recorded Webinar
  • 90 minutes
  • Thu, July 21, 2016
Event Description

Impact of the New FLSA Overtime Rules on Institutions of Higher Education

The U.S. Department of Labor (DOL) released the much awaited final regulations for the white collar exemption to the federal overtime pay requirements under the Fair Labor Standards Act (FLSA) on May 18, 2016. This new legislation will have a significant impact on many institutions of higher education as it more than doubles the salary threshold required for employees to qualify as an exempt employee.

Institutions need to be familiar with the new regulations, as misclassification of employees as exempt from FLSA overtime requirements is a costly mistake. Institutions will need to move quickly to plan and implement any necessary changes by the December 1, 2016 compliance deadline. 

The key provisions of the new regulations include increasing the salary threshold from $455 per week to $913 a week for a full-year worker; increasing the total compensation needed to exempt highly compensated employees from $100,000 annually to $134,004 annually; and establishing a mechanism to automatically update the salary/compensation levels every three years, beginning January 1, 2020. Also, employers now will be able to use nondiscretionary bonuses and incentive payments made on a quarterly or more frequent basis to satisfy up to 10% of the new standard salary level.

Although a number of positions will be unaffected by this rule, regardless of whether they earn above the new threshold or not (e.g., most faculty positions), certain higher education workers will be affected by the new rule, including: postdoctoral researchers; non-academic administrative employees; and other salaried workers whose duties are not unique to the higher education setting.

In this session, expert speaker Erin E. Dolly will discuss creating an institutional action plan for evaluating institution’s current practices and transitioning to the requirements of the final FLSA overtime rules.

Session Highlights:

There will be discussion on creating an institutional action plan for evaluating your institution’s current practices and transitioning to the requirements of the final rule, including:

  • Conducting an audit of all exempt job positions to identify all of their employees who currently earn less than $913 per week or $47,476 annually, and calculating the costs involved if the salaries of those positions were increased to the threshold minimum level;
  • Issues unique to the positions most likely impacted on your campuses, including residence life staff, admissions staff/recruiters, assistant coaches and athletic trainers;
  • Evaluating the best options for compliance given legal, financial, employee morale, and other considerations specific to your institution (options may include increasing salary levels to meet the threshold level, evaluating and realigning employee workload, tracking and compensating overtime for all hours worked in excess of 40 per week above a salary, re-classifying employees as non-exempt, reductions in force, or outsourcing certain functions);
  • Determining any unintended consequences of electing certain options for compliance;
  • Communicating your action plan; and
  • Implementing your action plan.

Who Should Attend

  • General Counsel/Assistant General Counsel
  • Risk Assessment
  • Human Resources personnel
  • Student affairs administrators
  • Residence life directors
  • Admissions directors
  • Athletics administrators
  • Postsecondary regulatory and compliance professionals
  • Attorneys representing post-secondary educational institutions

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About Our Speaker(s)

Erin E. Dolly
Erin E. Dolly is an attorney at Hirschfeld Kraemer LLP in San Francisco, where she counsels institutions of higher education and other public and private employers on a broad range of legal matters, including labor, employment, student affairs and compliance issues. Erin advises private and public employers on issues r... More info


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