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.
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.
The primary changes to the FLSA concern overtime regulations for employees.
Specifically, the salary threshold for exemption from overtime regulations was raised to $35,568 annually or $684 weekly. The previous threshold was $23,660 annually or $455 weekly.
Additionally, the compensation requirement for the 'highly compensated employees' exemption category was raised to $107,432 annually from the previous level of $100,000 annually.
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.
The changes are effective on January 1, 2020.
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.
Over the summer, HR will determine which employees are affected by these changes. They will notify those individuals and their supervisors in early fall.
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.
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.
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.
The U.S. Department of Labor made these changes to ensure workers are protected and fairly compensated for the time they work each week.
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.
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.
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.
Contact Tiffani McCain, Human Resources Consultant for Classification and Compensation, at firstname.lastname@example.org or at 704-687-0655.