U.S. Department of Labor - Final Rule: Overtime
UPDATE: September 24, 2019, the Department of Labor announced its Final Rule updating overtime regulations.
The Final Rule can be found here: U.S. Department of Labor – Final Rule: Overtime https://www.dol.gov/whd/overtime2019/
Key provisions of the Final Rule:
- Raises the “standard salary level” to $684 per week (equivalent to $35,568 per year for a full-year worker)
- Sets the total annual compensation requirement for “highly compensated employees” to $107,432
- Allows employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level
- Effective date of the final rule is January 1, 2020
How does this impact WKU?:
In 2016, the Department of Labor (DOL) issued a Final Rule regarding the minimum salary threshold for determining exemption from overtime payments. In anticipation of implementing the Final Rule, WKU adjusted 300+ individuals from the monthly payroll to the semi-monthly payroll schedule. However, later in 2016, a court overturned the regulation and definitive implementation was put on hold for additional review by the DOL. Since this time, we have maintained the payroll changes for those potentially affected individuals and identified them as the “transition group".
Because the Final Rule has officially been approved for implementation January 1, 2020, WKU must now finalize all decisions on "transition group" employees and implement the DOL regulation regarding minimum salaries for exempt positons.
Also see below for resources for affected employees.
WKU Human Resources’ Plan of Action:
- Identify individuals with a salary below the new salary threshold ($35,568/year)
- Work with Division leaders to adjust applicable positions to non-exempt.
- Exempt full-time staff members on the semi-monthly payroll (transition group) will remain on the semi-monthly payroll, but will adjust to non-exempt and be required to complete the semi-monthly timesheet (see Timekeeping Updates).
- Exempt part-time staff members on the monthly payroll will transition to non-exempt, bi-weekly payroll, will be paid per hour worked, and be required to maintain a record of hours worked via TopNet.
- Communication to affected staff members will be sent to their supervisors no later than November 22, 2019. A follow up email will be sent to affected employees within the first week of December 2019.
- Effective January 1, 2020, all newly designated non-exempt staff members are required to complete a timesheet. Timesheets and timesheet training can be found here: Timekeeping.
- Exempt staff members on the semi-monthly payroll with a salary above the minimum threshold ($35,568) will continue with the semi-monthly payroll frequency until the completion of the University-wide Compensation Review. At that time, all exempt positions will be paid on a monthly payroll frequency.
- Pay administration guidelines can be found here: Pay Administration
Resources for Affected Employees
For employees moving to non-exempt status on semi-monthly payroll
|For employees moving to non-exempt exempt status on bi-weekly payroll|