For the first time in 15 years, the U.S. Department of Labor will update the overtime regulations for workers nationwide, including UTRGV employees, and will be implemented by Jan. 1, 2020.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping and youth employment standards in America.
Kristina Chavez, associate director for Compensation and Talent Acquisition, said the FLSA guides which employees are eligible for overtime pay. However, in higher education, employees who are eligible can either get paid or can take paid time off.
Chavez said there are “non-exempt jobs” and “exempt jobs.” Employees with exempt jobs, who make over the threshold annually, are not eligible for overtime. However, employees with non-exempt jobs, who make less than the threshold, are entitled to overtime.
“Depending on the status you’re in, if you work more than 40 hours, [and] you’re non-exempt, you accrue overtime,” she said. “If you’re exempt, nothing happens. Should your boss do that? Different discussion.”
Chavez said the current threshold is now at $23,660 per year, but the ruling moves this limit to $35,568 per year.
“Everybody that is now in a job that pays less than $35,568 per year is automatically going to go to that [non-exempt group],” she said. “So, that’s where we have to see what [UTRGV will] do. What is best for the university, and of course, what’s best for our employees.”
Chavez said, currently, proposals have been provided and research is being done as the university searches for what to do in response to this law change.
Asked how much it will cost the university and how many people at UTRGV will be affected by the change, she said, “I don’t know yet. That really depends on what is going to, in the end, be put in place.”
Chavez said a decision will probably be made, the latest, by December, since it needs to be implemented by Jan. 1, at which point UTRGV will be contacting supervisors and employees that are impacted.
According to the U.S. Department of Labor, the proposition to amend the threshold in the FLSA was first announced March 28 this year. On Sept. 24, the final rule to make an estimated 1.3 million American workers eligible for overtime pay was announced. The department also stated workers nationwide will receive an estimated $298.8 million of extra pay each year.
According to an excerpt from the 2019 Professionals in Higher Education Annual Report, 96% of all higher education exempt professionals are paid above the proposed threshold, while 4% are below this and would need to be re-evaluated for their “exempt-status.”
The excerpt also stated athletic affairs and student affairs had a relatively high percentage of exempt employees below the proposed threshold. It also stated student admissions counselors and student residence hall managers had the highest number of officials currently being paid below the proposed threshold as well.
Oforiwaa Sam, a biology senior and student assistant, said the new changes are a great idea since it will allow employees more free time and potentially more money.
In 2016, there was an attempt to change the threshold to $47,476 but it was declared invalid by the United States District Court, according to https://www.dol.gov/whd/overtime2019/overtime_FR.pdf.
Chavez said the update was years in the making and is a change for the better.
