November 18, 2015
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Proposed Changes to U.S. Department of Labor’s Overtime Rule


On Monday, Human Resources staff from CCIC Member Institutions convened to get a better understanding of a recent proposed rule by the U.S. Department of Labor’s Wage and Hour Division which seeks to increase the minimum salary thresholds for overtime pay to $50,440 in 2016. This is an increase of over 100% from the current level of $23,660, set in 2004. 
 
Staff from the College and University Professional Association of Human Resources (CUPA-HR) in Washington, D.C. joined us by conference call to explain the potential impact of this proposal on higher education institutions in Connecticut and advised our member institutions to prepare for the implementation of this proposed rule by late 2016, when it is expected that the final rule will go into effect.  
 
The higher education community agrees that an increase to the current minimum salary threshold is long overdue. However, the proposed minimum salary threshold is simply too high.  This proposal as currently recommended will cost higher education institutions millions.  If implemented, it will force colleges and universities to reclassify certain jobs from exempt to non-exempt (i.e., salaried to hourly with overtime).  Impacted employees include admissions counselors, residence hall managers and coaches.  These jobs offer and require significant professional autonomy and are well suited to exempt status.  Institutions will not be able to absorb the increased costs associated with higher salaries for exempt status and thus students and employees will be negatively impacted.
 
To learn more, click here or to reach out to your Congressional Delegation to express your concern about this proposal, click here.

 

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