Proposed National Changes to Overtime Regulations

Date: 
May 10, 2016

The Department of Labor has proposed changes to the Federal Labor Standards Act (FLSA) that will affect how some UNC Charlotte employees record their time and qualify for overtime. The changes are national and not specific to North Carolina or the UNC system.

The proposed changes increase the salary threshold that establishes which employees are exempt from overtime. Both SHRA and EHRA non-faculty employees will be subject to this adjustment.

The current threshold for exemption is $455 per week or $23,660 annually. The proposed threshold is $970 per week or $50,400 annually. 

The proposal for changes is currently with the Office of Management and Budget for final review and decision. It is possible the final threshold will be less than the proposed $970 per week.

Non-faculty employees who fall below the new salary threshold will be required to complete timesheets, and they will receive compensatory leave or overtime pay for time worked that exceeds 40 hours per week.

In addition to the compensation threshold, there are criteria on the duties and responsibilities employees have that determine whether they are exempt or non-exempt, referred to as the duties test.  At this time, no changes are expected to the duties test.

Faculty will not be affected. The FLSA includes a teaching exemption, which allows faculty to remain exempt regardless of the salary threshold.

It is expected the Office of Management and Budget will make a final ruling within the next few weeks. When it is clear what changes will become law, the Office of Human Resources will contact affected employees and their supervisors.

More information about the proposed changes can be found on the human resources website