FLSA Changes | Employee Gateway

FLSA Overtime Rule

Timeline for State of Utah Employees

2016-2017

The Fair Labor Standards Act (FLSA) new overtime rule that was scheduled for implementation effective December 1, 2016 is currently on hold. On November 22, 2016, A United States District court issued a nationwide preliminary injunction blocking implementation of this new rule. Here is a brief timeline showing what has happened so far:

May 18, 2016 – The U.S. Department of Labor (DOL) issued a new rule updating the regulations determining which white-collar, salaried employees are entitled to the Fair Labor Standards Act (FLSA) minimum wage and overtime pay protections. The changes include an increase to the minimum salary needed for executive, administrative and professional employees to be classified as FLSA Exempt. The current salary level threshold of $455 per week ($11.38 per hour) for the minimum salary level was set in 2004. The new minimum will be $913 per week ($22.83 per hour) effective December 1, 2016.

October 24, 2016 – Emails or letters were sent out to all affected State of Utah employees who would be switching from FLSA Exempt to FLSA Non-Exempt as a result of the new overtime rule.

November 7, 2016 – Emails or letters were sent out to all affected State of Utah employees who were slated to remain FLSA Exempt, but would experience a change to their salary ranges through an Administrative Adjustment or a Structure Adjustment.

November 19, 2016 – For State of Utah employees, November 19^th was the first day of the pay period containing the federal deadline of December 1, 2016. Therefore, the State of Utah completed implementation of the FLSA overtime rule effective November 19, 2016.

November 22, 2016 – A United States District court issued a nationwide preliminary injunction blocking implementation of this new regulation.

December 1, 2016 – Due to the preliminary injunction that was placed on November 22, 2016, The Department of Labor appealed the overtime rule injunction. The appeal was brought December 1^st by Labor Secretary Thomas Perez, Wage and Hour Administrator David Weil, Assistant Administrator Mary Zeigler and the DOL.

December 2, 2016 – Emails or letters were sent out to all affected State of Utah employees informing them that all implemented FLSA changes would be reversed with a new effective date of December 3, 2016. For historical purposes, the original implementation of the overtime rule would stay in effect for one pay period. Reversal of the FLSA changes included two possibilities: 1. An affected employee would be moved back from FLSA Non-Exempt to FLSA Exempt or 2. An affected employee’s salary range would revert back to the salary range that was in place prior to November 19, 2016.

December 3, 2016 – The effective date of the FLSA Reversal changes.

Although the DOL has appealed the preliminary injunction, the overtime rule faces uncertainty. A final court decision is expected to take some time, especially with new administration arriving on January 20, 2017.

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