“The Changes to FLSA’s Overtime
Rules and Its Impact on South Dakota
Schools”
SDASBO Fall Conference
September 21, 2016
FLSA CHANGES
I.
II.
III.
IV.
V.
Introduction & Fundamentals
Exempt v. Nonexempt Employees
Exemptions
Final Rules
Suggestions
FLSA CHANGES
Introduction & Fundamentals
FLSA CHANGES
FINAL OVERTIME RULES
■ Issued May 18, 2016
■ Effective December 1, 2016
FLSA CHANGES
PURPOSE OF FINAL OVERTIME RULES?
■ Update the Rules
■ White Collar Salaried Employees Exempt?
◦ Minimum Wage
◦ Overtime Protections
FLSA CHANGES
FINAL OVERTIME RULES
■ Mechanism for Automatically Updating
Salary and Compensation Levels – Every
Three Years
■ January 1, 2020 - Automatic Updates
Begin
FLSA CHANGES
What Is the FLSA?
FLSA CHANGES
■ Federal Law That Establishes Standards
■ Minimum Wage
■ Overtime Pay
■ Recordkeeping
FLSA CHANGES
“Overtime”
■ Work in Excess of 40 Hours/Week
■ Rate of Not Less Than One and One-Half
Regular Rate of Pay
FLSA CHANGES
Exempt Employees
v.
Nonexempt Employees
FLSA CHANGES
“Exempt Employees”
■ Covered by FLSA
■ Exempt From Overtime Requirements
FLSA CHANGES
“Nonexempt Employees”
■ Subject to All FLSA Requirements
FLSA CHANGES
WHAT ARE THE EXEMPTIONS?
FLSA CHANGES
“White Collar” Exemption
FLSA CHANGES
Three Requirements for “WC” Exemption
■ Employee Paid on SALARY BASIS
■ Employee Paid at SALARY LEVEL
■ Employee Meets PRIMARY DUTY
FLSA CHANGES
SALARY BASIS
■ Paid a Predetermined and Fixed Salary
■ Cannot Be Reduced For Quality/Quantity
FLSA CHANGES
SALARY LEVEL
■ Paid More Than a Specified Weekly Salary
■ $47,476/Annually
■ $913/Week
FLSA CHANGES
PRIMARY DUTY
Primarily Perform
■ Executive
■ Administrative
■ Professional
FLSA CHANGES
Executive Employees
■ Management of District or Department
■ Oversight of Employees & Control Work
■ Buildings & Grounds Supervisor
■ Food Service Director
FLSA CHANGES
Administrative Employees
■ Management of District or Department
■ Running/Servicing District or Department
■ Finance or Human Resources Director
FLSA CHANGES
Administrative Employees
■ Academic Operations
■ Superintendent/Principal/Counselor
FLSA CHANGES
Professional Employees
■ Requires Advanced Knowledge in Science
or Learning Through Specialized
Instruction
■ School Nurse/School Therapist
FLSA CHANGES
Computer Employees
■ Computer Analysts
■ Computer Programmers
■ Other Skilled Workers in Computer Field
FLSA CHANGES
What About Teachers?
FLSA CHANGES
■ Primary Duty is Teaching, Tutoring,
Instructing, or Lecturing
■ Not Subject to Salary Basis Test
■ Not Subject to Salary Level Test
FLSA CHANGES
■ Regular Academic Teachers
■ Kindergarten and Nursery School
Teachers
■ Gifted or Disabled Children Teachers
FLSA CHANGES
What About Coaches?
FLSA CHANGES
■ Employee Who ONLY Coaches – Likely
Does NOT Meet Any Exemption
■ Part Time Coach & Full Time Teacher –
Likely Does Meet Exemption
“The Changes to FLSA’s Overtime
Rules and Its Impact on South Dakota
Schools”
SDASBO Fall Conference
September 21, 2016