New regulations increase overtime eligibility for some employees

The U.S. Department of Labor on Wednesday released updated regulations that employers must follow in order to comply with the Fair Labor Standards Act. These changes increase the number of employees eligible for overtime pay at U-M and across the country.

Eligibility for overtime pay is determined by certain tests of job duties and pay. Under the new rules, employees must be classified as non-exempt and will be eligible for overtime pay if their annual salary is less than $47,476, up from the previous salary threshold of $23,660 a year.

The regulation is effective on Dec. 1, 2016.

Approximately 2,500 U-M employees in more than 200 job titles — across the Ann Arbor, Dearborn and Flint campuses and the U-M Health System — that currently are exempt from overtime are directly affected because they have salaries that fall below the new threshold.

"University Human Resources has been working closely with unit partners and HR leaders from all campuses to understand the impact and plan for implementation," said Laurita Thomas, associate vice president for Human Resources. "Their work will intensify now that the new regulations are available and more detailed implementation planning is possible."

Read more information about the changes