On May 18, 2016, the Department of Labor announced its final ruling that the salary test for exemption status for the Fair Labor Standards Act of 1938 will increase from $23,660 to $47,476 annually effective December 1, 2016. The rule does not apply to positions where the primary function is teaching.
The Fair Labor Standards Act was designed to protect employees from being required to work over 40 hours per work week without receiving compensatory or overtime pay. As a result of the new regulation, UALR employees who receive less than $47,476 annually:
- Will be reclassified from exempt to non-exempt;
- Will be required to start recording actual time worked by clocking in and out daily and for lunch breaks; and
- Will accrue compensatory leave at a rate of one and one-half hour after 40 hours of work in a work week. Compensatory time must be pre-approved by the employee’s supervisor.
We understand that this change in classification may cause some adjustment for those employees who previously did not have to clock in and out; however, we must make every effort to comply with our federal and state laws.
This ruling will not affect annual leave accruals. Non-exempt and exempt statuses are federal classifications regarding eligibility for overtime pay. Classified and non-classified statuses are state of Arkansas classifications in relation to entry level salaries for classified positions and line item maximum amounts for non-classified positions. Non-classified employees becoming non-exempt will still accrue leave at their regular rate.
The Department of Human Resources is leading a team of stakeholders from the campus community in preparing an implementation plan to be in compliance by the Dec. 1 deadline and will communicate changes as they develop. Time keeping training for all employees affected by this change will be announced soon.
Questions regarding the FLSA ruling, your exempt or non-exempt status, or how it will affect you personally should be directed to the Department of Human Resources at email@example.com or 501.569.3180.