The Department of Labor (DOL) has issued a proposed rule to update the salary level to qualify for the so-called “white collar” exemptions under the Fair Labor Standard Act’s overtime pay requirements.
The rule would significantly affect colleges and universities across the nation, impacting various non-faculty employees including athletic coaches and trainers, admissions recruiters and student affairs officers.
DOL is proposing to raise the standard salary threshold from its current level of $35,568 annually to $55,068 —a nearly 55 percent increase. It also would raise the salary level for the Highly Compensated Exemption (HCE) to $143,988 from its current level of $107,432, a 34 percent increase. All thresholds would be updated automatically every three years.
College and university professors and adjunct instructors are not covered by the salary threshold under DOL’s current “teacher exemption,” provided they have a primary duty of teaching, tutoring, instructing or lecturing. Based on current DOL policy, the threshold also likely does not apply to student workers, including teaching assistants and research assistants. Researchers do not qualify for the exemption unless they have significant teaching responsibilities.
ACE is co-sponsoring a webinar hosted by CUPA-HR on Sept. 21 to discuss how the proposed changes could affect campuses. You also can download this ACE fact sheet and read the DOL FAQ for more information