New Overtime Final Rule Issued

To our NIFA Partners: As many of you may be aware, on May 18, the Department of Labor issued the Fair Labor Standard Act’s Overtime Final Rule, which is intended to ensure overtime protections for executive, administrative, and professional employees (“white collar”). The implementation of the final overtime rule is Dec. 1.

Major provisions and changes from the initial proposed rule include:

• Nonexempt employees working over 40 hours per week must be paid overtime pay for work in excess of 40 hours per week. Compensation for these additional hours must be no less than one and a half times their regular hourly rate.

Exemptions can be made for “white collar employees,” including teachers, and certain other categories of workers.

• For exempt employees, the minimum income threshold is set at $47,476, double the current salary threshold.

No changes were made to the “duties test” and “teaching” exemptions.

NIFA is closely studying the updated rule and its impact to our land-grant university partners, small business and other grantees. In the coming weeks, we will provide you more information and necessary guidance as it relates to our current and future funding opportunities and reporting procedures.