Fair Labor Standards Act Compliance

Judge Issued Injunction Postponing Implementation of FLSA Update to Overtime Regulations

On November 22, 2016, a federal court granted a preliminary injunction postponing the December 1st implementation of changes to the FLSA salary threshold for exempt positions. The current rule remains in effect.

The USF System honored pay increases for employees whose salaries were increased to the updated FLSA threshold effective November 18, 2016. Newly non-exempt positions were reverted to their previous exempt status.

Current Rule
Under the current FLSA guidelines, to qualify for exemption from overtime provisions, all of the following tests must be met:

  • Salary Basis Test: An employee must receive a predetermined amount of compensation each pay period that cannot be reduced because of variations in the quality or quantity of the employee’s work.
  • Minimum Salary Test: An employee must be paid on a salary basis at not less than $455 per week or $910 biweekly.
  • Duties Test: The primary job duties performed must meet certain tests associated with exempt executive, administrative, professional or highly compensated employees as specifically defined by the FLSA.

Fair Labor Standards Act (FLSA) - Update to Overtime Regulations

In May 2016, the Department of Labor (DOL) released updated regulations that require employers to change certain policies and practices in order to comply with the law. Effective December 1, 2016, these new regulations will change the overtime exemption status for many employees. Employees who are currently salaried but who make less than the revised minimum salary threshold of $47,476 per year may become eligible for compensatory time or overtime pay (if allowable) for hours worked over 40 in a workweek.

The annual salary threshold for USF will increase to $47,659 and differs slightly from the figure published by the Department of Labor because USF has 26.1 biweekly pay periods in a year. Ultimately, the weekly salary of $913 determines whether an employee meets the salary test. The Department of Labor's $47,476 annual salary estimate is based on an assumption that an employer is calculating the annual salary figure based on 26 biweekly pay periods. The FLSA rule change does not apply to faculty.

This site contains information that applies to Administration employees, all of whom are now exempt, and to a few exempt Staff employees. For information regarding Postdoctoral Fellows consult the Office of Postdoctoral Affairs.