University completes Fair Labor Standards Act new overtime rules analysis

November 21, 2016 | UToday
By Staff

In accordance with the Fair Labor Standards Act new overtime rules, UT Human Resources and Talent Development in partnership with department leadership has completed the analysis for the University and determined that approximately 266 employees are impacted by the new regulations out of a total population of 2,707 exempt employees. 

In May, the U.S. Department of Labor announced new rules regarding overtime eligibility for current exempt employees. The new Fair Labor Standards Act rules determine how employees are classified — exempt or nonexempt — and increase the overtime eligibility threshold from $455 per week (annualized $23,660 per year) to $913 per week (annualized $47,476 per year). They also detail approved exemptions for government, public sector and higher education employers, and clarify implementation requirements. The new Fair Labor Standards Act rules do not affect the current hourly, non-exempt employee population.

Members of UT’s Human Resources team have worked with department leaders to complete the analysis and assess each employee’s status. Final assessments have shown that the vast majority (90 percent) of exempt employees reviewed will experience no change in their status. As a result, no further action or individualized employee communication is necessary.

For employees impacted by the new rules, HR has partnered with department leadership to determine what changes are necessary to abide by the new regulations ranging from salary adjustments to reclassification and overtime eligibility. Impacted employees will receive notification from their supervisors about the changes and the impact on overtime eligibility.

The new rules will go into effect at the University Thursday, Dec. 1.

More information about the Fair Labor Standards Act new overtime rules is available at

Click to access the login or register cheese