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Fair Labor Standards Act Regulations
FLSA Implementation on Hold
On November 22, 2016, a Federal Court approved an injunction to place a hold on the Fair Labor Standards Act (FLSA) changes (noted below) which were to have taken effect on December 1st. The University was advised by the Maryland Attorney General’s to postpone the implementation of any changes planned in order to meet the requirements of the new FLSA rules.
All FLSA related salary increases and position reclassifications will not be implemented at this time and will be on hold until the University receives guidance from the Maryland Attorney General’s office on implementing FLSA changes.
We will continue to vigilantly monitor the status of the FLSA rule and keep you informed of any additional changes.
In May 2016, the U.S. Department of Labor (DOL) announced changes to the FLSA regulations that will become effective on Dec. 1, 2016. The FLSA provides guidance to employers to indicate employees eligible for overtime.
Highlights of the New FLSA Regulations (As of November 22, 2016 on hold)
- The salary threshold required for exempt employment is $47,476 annually ($913 weekly)
- New FLSA regulations are effective Dec. 1, 2016
- UMB will implement the new regulations with the pay period beginning Nov. 27, 2016
- The U.S. Department of Labor will review and adjust the salary threshold every three years beginning in 2020
How Will UMB Implement the New FLSA Regulations?
Planning and preparation for the new regulations has been underway since early this year when the proposed FLSA regulations were first issued. Each school and administrative unit has developed a plan based on a number of factors, such as budget, pay compression, and equity.
Managers will be communicating with their impacted employees in early October 2016, and will inform these employees how the new regulations will specifically impact their classification and/or salary.