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New Federal Law for Exempt Status and Overtime Pay Requires Training

An amendment to the federal Fair Labor Standards Act (FLSA) will take effect Dec. 1, changing the salary level for overtime eligibility and exempt employment status.

Oct 20, 2016

Among other changes, the law raises the annual salary level required for an employee to be classified as an “exempt employee,” meaning the employee is paid based on a set salary that is not eligible for overtime pay rather than an hourly wage that is eligible for overtime pay, from $23,660 per year to $47,476.

There will be no negative impacts to salaries of CNM employees caused by this new law. Employees whose positions will switch from being exempt from overtime pay requirements to being non-exempt, will become eligible for overtime pay when working more than 40 hours per week.  

To implement the law correctly, Human Resources and Payroll department staff will invite affected employees and supervisors to attend training sessions regarding the overall impact of the law. The sessions will be held now through Oct. 25 -- in time to complete and approve timesheets due Oct. 31. 

All supervisors, program directors and administrative coordinators are invited to attend the Human Resources/Business Office Forum to go over recent updates, including FLSA, Open Enrollment, New Employee Orientation, and more. More information about FLSA and other Human Resources’ programming will be available. For questions about the training sessions, email employeetraining@cnm.edu.