On this episode of the K12 HR Solutions Podcast I’ll discuss:
* Changes from the Department of Labor that will take effect December 1, 2016
* Exemptions under FLSA and which ones are more likely to affect school districts
* How these changes will likely impact school districts
* How school districts can prepare for new changes to FLSA
* A free resource to help school leaders budget for the impact of FLSA changes
On May 18, 2016 the Department of Labor (DOL) announced the Final Rule for overtime under FLSA. The new rule will take effect December 1, 2016. (We wrote extensively about the possible changes in this article about FLSA Changes in School Districts in case you want a more in-depth review of some of the information presented here).
The change will entitle most salaried white collar workers to earn at least $913 per week or $47,476 per year. The new salary requirement or test is more than twice the old salary requirement of $23,660 per year.
Exemptions Under FLSA Reviewed
* Classified or Non-Certified
* Certified
Exemptions under FLSA are:
* Executive
* Administrative
* Professional
* Outside sales
* Computer employee
* Highly compensated employees
A more detailed description of FLSA exemptions can be found on the DOL website.
How FLSA Changes Could Affect School Districts
An employer can choose to classify certain employees as exempt under FLSA if they expect the position to have frequent overtime, fluctuating hours, or some other factor that makes sense financially and logistically to pay an employee salary and classify them as exempt. If an employee is classified as exempt they must meet three criteria, or tests.
* The employee must be paid on a salary basis.
* The employee must perform very specific duties to be considered exempt.
* The employee must also be paid (on a salary basis) a minimum salary.
School District Employees Impacted by New FLSA Rules
If a staff member is non-exempt, meaning they are paid at an hourly rate and are compensated overtime (at least 1.5 times their regular rate of pay) for all hours worked over 40, there are not likely to be impacted by the changes to FLSA.
The new FLSA rule does not apply to bona-fide teachers. Under the professional exemption teachers have a special exemption that excludes them from the salary test.
The DOL clarified rules that allows some district employees within the administrative exemption to be excluded from the new salary test as well.
The administrative exemption is also available to employees compensated on a salary or fee basis at a rate not less than $913 per week under the new rule, or on a salary basis which is at least equal to the entrance salary for teachers in the same educational establishment, and whose primary duty is performing administrative functions directly related to academic instruction or training in an educational establishment.
What School Districts Should Do About FLSA Changes Now
* Identify Exempt Employees, Salary,