Ithaca College

Submitted on behalf of Cindy Reckdenwald, Director of Compensation & Workforce Planning

In May of this year, the U.S. Department of Labor announced changes to the Fair Labor Standards Act (FLSA) that will impact the rules on overtime pay.  The new law will become effective on December 1, 2016.  These changes require employers to re-evaluate the exempt/non-exempt classification of positions due to the increase in the minimum salary threshold for the overtime exemption from $23,660 to $47,476 per year.  Under the FLSA, positions must meet both the duties test and the salary test to qualify for the executive, administrative, or professional exemption from the minimum wage and the overtime provisions of the law.  This new law does not automatically change overtime eligibility or require employers to increase salaries to the new exemption threshold.  However, employers are encouraged to audit current exempt positions to determine the proper classification under the new law and make appropriate adjustments to achieve compliance.

The exempt status of a staff position at Ithaca College is determined by the College’s Compensation Department within the Office of Human Resources and is done so in accordance with criteria established by the FLSA.  The Compensation department within the Office of Human Resources has completed a preliminary analysis and has identified approximately 100 positions that may no longer meet the requirements for exempt classification.  Meetings to review the implications of the new overtime rule and to discuss options to remain in compliance have taken place with administrators and department supervisors during the month of August and will continue into September.  We are considering all options that can be taken to ensure compliance with the new regulations and will work with College leadership to adopt a plan by October 2016.

In order to comply with the new law, it is expected that some of the 100 positions, but not all, will be changed from exempt (not eligible for overtime pay), to nonexempt (eligible for overtime pay for all hours worked over 40 in a workweek).

Please contact Cindy Reckdenwald directly at x4-3850 or Maura Fetsko at x4-3483 if you have questions or would like additional information or clarification.

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