New federal overtime rules to raise salary threshold for exempt employees nationwide starting in December 2016

On Thursday, Dec. 1, 2016, new federal overtime regulations will take effect under the U.S. Department of Labor’s Fair Labor Standards Act (FLSA) that apply to all U.S. employers, including SMU.

The FLSA classifies U.S. employees as either “exempt” or “non-exempt” from its regulations. As part of the new FLSA regulations, the salary threshold will increase to $47,476 annually, or $913 a week, for U.S. employees whose positions are classified as exempt from overtime.

In accordance with the FLSA, SMU will increase the salaries of exempt staff members who currently earn less than the new salary threshold to $47,476 annually, effective Dec. 1. The Department of Labor will update this salary threshold every three years, beginning in 2020.

Under the new regulations, SMU staff members whose positions currently are classified as exempt will maintain that classification, and they will continue to be paid a salary on a monthly basis.

SMU’s Department of Human Resources will contact staff members who are receiving a salary increase and their supervisors by email before Nov. 30 and will provide more information.

The new regulations do not affect SMU faculty members or non-exempt staff members. Non-exempt staff members are paid for hours worked at an established hourly rate on a biweekly basis and are paid overtime for hours worked in excess of 40 per workweek.

If you have questions about FLSA at SMU, please contact SMU’s Department of Human Resources.