2016 FLSA Changes

On Nov. 22, 2016, a U.S. District Court judge in Texas issued a nationwide temporary injunction to postpone the implementation of proposed changes to overtime eligibility under the Fair Labor Standards Act (FLSA). The same judge struck down the proposed changes on Aug. 31, 2017. The changes would have raised the salary threshold for an individual to be considered a salaried (exempt) employee to $47,476. Exempt employees do not qualify for overtime pay, while non-exempt employees do.

Individuals at U-M who initially were transitioned to FLSA non-exempt status under the anticipated new regulations were returned to exempt status as of Dec. 1, 2016. Individuals who transitioned back to exempt received a biweekly paycheck on Dec. 9, 2016, with pay for time worked between Nov. 20 and Nov. 30, including any overtime for which they were eligible. They also received a monthly paycheck on Dec. 23, 2016 for the entire month of December.  

The university will not mandate institution-wide salary increases that would have been required under the revised regulation. 

The National Institutes of Health has announced it is proceeding with its planned increase in postdoctoral stipends. Many university units use that benchmark as guidance for postdoc pay. 

During the analysis that the university conducted as part of this process for all staff, units identified issues related to equity or competitive pay for some individuals. As always, units have the flexibility to address those situations. Units will communicate with affected individuals through their human resources contacts.

Last update 09/15/2017.