Changes to Fair Labor Standards Act Overtime Rule

         In May, the U.S. Department of Labor published a new overtime rule which has garnered significant media coverage and impacts many employers and employees across the nation. 

 

         For school districts, it is important to remember the administrators and teachers are and remain exempt from the overtime rules and are not eligible for overtime compensation.  School districts do employ many non-exempt employees, however, who are subject to FLSA overtime rules and will be impacted by this change.  These types of employees include salaried secretaries, maintenance workers, or other employees whose work relates to general business operations.  Academic administrative employees of schools are exempt from FLSA overtime rules if their salaries equal either the entrance salary for teachers employed by the school or the new FLSA standard salary ($913.00 per week / $47,476.00 per year).

 

          This rule takes effect on December 1, 2016.  Districts must anticipate these changes for FY 2017 and determine whether previously exempt positions are impacted.