FLSA Changes FAQs

What is the FLSA?

Who made the proposed changes to his law? Are they just for UNC Charlotte?

What are the Changes?

When will the changes take effect?

Will this result in employees being demoted?

When will employees know if they are affected?

Who is impacted by these changes?

Why is HR conducting a review of positions based on the duties test if there were no changes to this part of the FLSA?

What will change for impacted employees?

Why are these proposed changes being made?

Aren't EHRA non-faculty employees automatically exempt from these changes?

If I fall below the salary threshold, will I be converted from EHRA to SHRA?

How will this change impact Faculty?

Who should I contact if I have more questions?

 

 

What is the FLSA?

            The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in both the public and private sectors. For more information, click here.  For more information click here.

 

Who made the proposed changes to his law? Are they just for UNC Charlotte?

The changes were made by the U.S. Department of Labor. The changes are nationwide and aren’t exclusive to North Carolina or UNC Charlotte. 

 

What are the Changes?

The primary changes to the FLSA concern overtime regulations for employees.

Specifically, the salary threshold for exemption from overtime regulations was raised to $47,476 annually or $913 weekly. The previous threshold was $23,660 annually or $455 weekly.

This means employees who fall below the new salary threshold — and do not meet other exemption criteria — will begin completing timesheets and will qualify for overtime pay or compensatory leave for hours worked over 40 each week.

In addition to the compensation threshold, there are also criteria on the duties and responsibilities an employee has that determine whether they are exempt or non-exempt, referred to as the duties test. No changes were made to the duties test; however, HR will review all relevant positions to ensure compliance with FLSA regulations.

 

When will the changes take effect?

All changes must be in place by Dec. 1, 2016.

 

Will this result in employees being demoted?

No. Changing status from exempt to non-exempt is not a demotion. It is simply a difference in the timekeeping and payroll process. 

Employees who are exempt are required to record time missed for leave, but they are not required to keep daily time records and do not receive compensatory leave or overtime pay for time worked over 40 hours per week. 

Employees who are non-exempt do keep daily time records and their time worked over 40 hours per week is documented and used as compensatory time or paid as overtime. 

UNC Charlotte currently has employees who are in higher paying positions that are considered non-exempt because of the nature of their responsibilities and who keep daily time records. 

 

When will employees know if they are affected?

Over the summer, HR will determine which employees are affected by these changes. They will notify those individuals and their supervisors in early fall.

 

Who is impacted by these changes?

These changes affect SHRA and EHRA non-faculty employees, temporary employees, and possibly student employees who fall below the new salary threshold and are currently considered exempt. This includes part-time employees who earn less than the new threshold, even if their full-time equivalent salary is more than the threshold. Additionally, HR will conduct a review of relevant job descriptions to ensure compliance with the duties test portion of the FLSA. This review may result in the reclassification of some positions. 

 

Why is HR conducting a review of positions based on the duties test if there were no changes to this part of the FLSA?

UNC Charlotte’s rapid growth has brought many wonderful changes to our campus, but it has also resulted in some employees’ job descriptions becoming outdated. The duties test review is necessary to ensure the University is in compliance with all aspects of the FLSA.

 

What will change for impacted employees?

Employees who fall below the new salary threshold will become non-exempt, or “subject”, requiring them to complete timesheets and making them eligible for overtime pay or compensatory time for hours worked over 40 each week. This includes part-time employees who are earning less than the new threshold even if their full-time equivalent salary is over the threshold.

 

Why were these changes made?

The U.S. Department of Labor made these changes to ensure workers are protected and fairly compensated for the time they work each week. 

 

Aren't EHRA non-faculty employees automatically exempt from these changes?

No, EHRA means an employee is exempt from the State Human Resources Act. This is not the same as being exempt from the FLSA.

EHRA non-faculty employees who fall below the new salary threshold will become non-exempt, or “subject,” requiring them to complete timesheets and making them eligible for compensatory time or overtime pay for hours worked over 40 each week.

 

If I fall below the salary threshold, will I be converted from EHRA to SHRA?

No, you will remain EHRA. EHRA non-faculty employees who fall below the new salary threshold will become non-exempt, or “subject,” requiring them to complete timesheets and making them eligible for compensatory time or overtime pay for hours worked over 40 each week. EHRA means an employee is exempt from the State Human Resources Act. This is not the same as being exempt from the FLSA. 

 

How will this change impact Faculty?

No, this change will not impact Faculty. The FLSA includes an exemption for teachers, which allows Faculty to remain exempt employees regardless of whether or not they meet the salary threshold.

 

Who should I contact if I have more questions?

Contact Sarah Ekis, human resources consultant for EHRA non-faculty employees, at sekis@uncc.edu or at 704-687-1433.