Human Resources

Q:

What are the key provisions of the Final Rule on FLSA and how does it impact the University?



A:

Three key provisions are detailed by the Final Rule:

  1. Sets the standard salary level ($913 per week/$47,476 annually);
  2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
  3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.



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