In early 2016, the U.S. Department of Labor (DOL) announced changes to the Fair Labor Standards Act (FLSA) that will impact the criteria used to determine eligibility for FLSA exempt status.  However, in November 2016, a federal court issued a nationwide injunction blocking the enforcement of the new DOL rule that increased the minimum salary threshold for exempt status to $47,476.  Prior to the injunction, this rule was set to be effective December 1, 2016. 

At NC State, all changes to FLSA Status – exempt to non-exempt or non-exempt to exempt – are made based on job duties and not solely based on the salary threshold.  Any changes to FLSA status made in 2016 remain effective, despite the new injunction.

The DOL is currently working on a proposed revision to the 2016 regulation after gathering data during a recent Request for Information (RFI).  More information will be provided as it becomes available.   Please contact your Talent Consultant with any questions or concerns.

Why is this Important?

The proposed increase to the minimum salary threshold was expected to expand the number of non-exempt employees, thus increasing the number of employees eligible for overtime.  In addition, the DOL included a mechanism to increase the salary threshold every three years.

How is NC State Responding?

NC State is monitoring the national discussion and is assessing the potential impacts of the proposed changes.  University Human Resources and General Counsel have been working with UNC General Administration, national organizations such as CUPA-HR, and peer institutions to ensure NC State is well-prepared to promptly react to the changes while limiting the impact to employees and the University.

Next Steps

Colleges and divisions are encouraged to evaluate the impact that changes to the FLSA may have on their respective units.

While the workgroup and university administration continue to evaluate the impact of any proposed changes, the University currently does not have plans to provide funding, with the exception of some limited support that was provided for postdoctoral associate increases, to offset any desired overtime that might be incurred by units.

Questions or concerns?  For additional information, please contact your Talent Consultant.