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FLSA Changes: PAS to PAE

On this page: What's Changed | To Do's | Important Dates | Tools & Resources

 

The Fair Labor Standards Act (FLSA) is administered by the U.S. Department of Labor (DOL) and establishes minimum wage, overtime pay, recordkeeping requirements and more for employees in both the private and public sectors. In 2014, President Obama issued a Memorandum seeking to update and modernize the overtime regulations.

In May 2016, the U.S. Department of Labor issued its final regulations (Overtime Final Rule and Higher Education, issued May 2016).

These final regulations were set to take effect December 1, 2016; however, on November 22, 2016, a judge in Texas issued a preliminary injunction postponing the effective date of the DOL’s regulation change.

What has Changed?

Nearly 500 IU employees were converted from exempt status to non-exempt (PAS classification) status in November of 2016 to prepare for the FLSA overtime rule change.  This rule change was abruptly put on hold through an injunction by a federal judge several days before the December 1st effective date. At that time the University decided to keep these employees in non-exempt status until more could be learned regarding the outcome of the rule change. 

In the months since IU’s decision, changes in Washington and the extension of the legislative proceedings surrounding the FLSA rule change indicate that it is unlikely $47,476 will remain the salary test threshold for exemption or that a final answer will be determined quickly. Given this, all current non-exempt PAS employees will transition to exempt status on April 9, 2017.

To Do's for Impacted Employees

Important Transition Dates

March 26 -
April 8
Last bi-weekly pay period, record time off using Kuali TIME for this period
April 9 Start of the monthly pay period; begin using ePTO
April 21 Last bi-weekly pay date (reflects March 26 – April 8)
Deadline to make changes to tax and direct deposit in Employee Center
April 28 First monthly pay date (reflects April 9-April 30)
April 30 End of first monthly pay period

Tools and Resources

Frequently Asked Questions (FAQs)

ePTO Tutorials and User Guides

 

Contact

University Compensation Programs

812-855-7321