December 01, 2016

UAB is proceeding with overtime pay changes despite court ruling

overtimeAlthough a U.S. District Court issued a preliminary injunction Nov. 22 blocking the U.S. Department of Labor Fair Labor Standards Act overtime rule that was to be effective Dec. 1, UAB has completed its implementation of the new rule and intends to maintain the changes it has made.

“At this time it is uncertain when the legal challenges to the Final Rule will be settled, and UAB is proceeding as if they are in effect,” said Chief Human Resources Officer Alesia Jones. “UAB has been proactive in preparing to comply with these changes and ensure we could make the required adjustments and allow employees time to plan for the impact on them personally.”

UAB will maintain any adjustments made to transition employees from exempt to non-exempt and salary changes to the new threshold of $47,476 per year, communicated earlier by the DOL, (including Research Career Ladder changes), until further notice.

“We will continue to monitor the legal process to ensure that we are up to date on the changing landscape of this regulation and stay the course until further guidance is available,” Jones said. 

At this time it is uncertain when the legal challenges to the Final Rule will be settled, and UAB is proceeding as if they are in effect.
—Chief Human Resources Officer Alesia Jones

Changes to the Fair Labor Standards Act (FLSA) regulations that were to become effective Dec. 1 would change the salary threshold at which many employees must receive overtime pay for more than 40 hours work each week. The minimum salary threshold, which was to rise to $47,476 from $23,660, also meant that many now-exempt employees would be classified as nonexempt.

As part of its work to comply with the FLSA, UAB has worked to implement the Kronos system for university wide record-keeping for time and attendance, vacation and sick days, which Jones sees as a bonus.

“The work that has been done places us in a good position to comply with what may ultimately result and has led to many positive outcomes regardless of the ultimate conclusion of the Final Rule,” she said.