On Sept. 24, 2019, the U.S. Department of Labor (DOL) announced a final rule regarding overtime pay under the Fair Labor Standards Act (FLSA). The DOL’s final rule includes updated earnings thresholds that employers must consider when exempting employees in certain positions from the FLSA’s overtime pay requirements. The DOL’s rule does not make changes to the “duties tests” for these positions, which remain a critical factor in determining overtime exemption. The updated “standard salary level” threshold necessary to exempt an employee from FLSA overtime pay requirements will be $35,568 annually. Employees who are “exempt” are not entitled to overtime pay for hours worked over 40 in a workweek and, consequently, are not required to track hours worked.
The Office of Human Resources recently completed a review of approximately 1,400 Clemson University positions and has made determinations regarding overtime exemption status based on the DOL’s new rule. During this review, the following factors were considered:
Because exemptions are based on all three of these criteria, many employees making above $35,568 will remain FLSA “nonexempt,” meaning they will continue to track their time worked and will be eligible for overtime pay.
A list of frequently asked questions and answers is available for your reference.