New overtime rules

On May 18, 2016, The U.S. Department of Labor (DOL) released new regulations which will increase the minimum salary requirement for employees to be considered exempt. These new changes will become effective December 1, 2016. The University of South Carolina has chosen to implement the Fair Labor Standards Act (FLSA) changes system wide effective October 16, 2016. This date is a little earlier than the effective date of the new regulations, but this time frame works better for USC since the official work week begins on a Sunday.

Under the new rules, employees must be classified as non-exempt and eligible for overtime pay if their annual salary is below $47,476 ($913 per week), up from the previous threshold of $23,660 per year ($455 per week).

This is a significant change that will cause approximately 1,000 USC employees to transition from an exempt status to a non-exempt status. Those affected will now be required to report their work time in the university’s timekeeping system. Please note the new FLSA rules do not affect teachers, physicians and attorneys. 

Training Sessions

HR previously conducted two training classes — FLSA Basics and FLSA Advanced — to help managers and supervisors understand the new regulations and how they will impact USC. A second FLSA Advanced training session will be held on September 8, 2016 from 9:00 a.m. to noon in the UTS Auditorium (3rd floor). You can either register to attend this training in person or you can register to participate in the training by webinar.

To find out more information concerning the FLSA changes, please visit  the New Overtime Rules section on HR’s website. Here you will find frequently asked questions, recorded training sessions, fact sheets and links to other websites that will help you prepare for these new changes. 

Questions about the FLSA or the new overtime rules can be directed to the Salary Administration Office at 803-777-3111.

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