Will the Overtime Rule Delay Impact College Salaries?
Despite the November 22 injunction delaying the Department of Labor’s final overtime rule , numerous college employees are still getting raises. Issued earlier this year, the final rule increases the salary threshold for overtime pay and offered a teaching exemption for non-faculty employees and postdoctoral fellows that primarily conduct research. The injunction shelved the rule’s December 1 effective date, but some higher institutions have already implemented their payroll changes and want to avoid damaging employee relations. Other colleges and universities still plan to postpone salary changes due to the injunction. More on the final overtime rule injunction and its impact on colleges can be accessed on Inside Higher Ed.
Final Overtime Rule on Hold
A November 22 preliminary injunction has blocked the Final Overtime Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.
Guidance for Higher Education Issued on Paying Overtime
On Wednesday, May 18, the Department of Labor (“DOL”) issued new regulations addressing the overtime provisions of the Fair Labor Standards Act (FLSA). The DOL has published guidance regarding the new regulations. Contact Kyle Frigon with questions or concerns.