Ithaca College

In a recent question and answer interview, Brian Dickens identified changes to federal regulations as an immediate priority for the Office of Human Resources.  The Fair Labor Standards Act (FLSA), recently amended, governs federal minimum wage and overtime pay requirements. This amendment was widely published as “the new overtime rule”. The new rule doubles the minimum salary for employees to qualify as “exempt” from the requirement of paying overtime for any hours worked in excess of 40 in a work week. Effective December 1, 2016, the new minimum salary will be $913 a week (or $47,476 per year). The previous threshold was $455 per week ($23,660 per year).

Under the FLSA, employees must meet both a duties test and a salary test to qualify for an executive, administrative, or professional exemption from the minimum wage and overtime protections of the act. Current employees holding exempt positions will be reviewed to ensure they meet both the salary and duties test. Employees holding a nonexempt position should not be affected by this change.

Human Resources has reviewed the amendment to the FLSA, and is evaluating the impact of these changes to the College. We are reviewing exempt staff positions’ compensation data to identify those which no longer meet the minimum salary requirement, as well as determining if any positions no longer meet the duties requirement for an exempt classification.

Human Resources has met with each of the vice presidents, and will meet with department directors to review the implications of the new overtime rule to their department staff, and to discuss options to remain in compliance with the FLSA. We plan to consider options that can be taken to ensure compliance with the new regulations, and adopt a plan by October, 2016.

Human Resources will communicate with all affected employees once a plan has been adopted. These employees will receive notification in advance of the effective date explaining in what way their position classification has been affected.

Human Resources will work with supervisors to review employment policies such as time reporting, meal periods, and off-the clock policies, to assist supervisors in implementing policies and procedures in accordance with the Fair Labor Standards Act and College policies.