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Division of Human Resources

New Overtime Rules

On May 18, 2016, The U.S. Department of Labor (DOL) released new regulations which will increase the minimum salary requirement for employees to be considered exempt. These new changes will become effective December 1, 2016.

Under the new rules, employees must be classified as non-exempt and eligible for overtime pay if their annual salary is below $47,476 ($913 per week), up from the previous threshold of $23,660 per year ($455 per week).

This is a significant change that will cause approximately 1000 University of South Carolina employees to transition from an exempt status to a non-exempt status. Those affected will now be required to report their work time in the university’s timekeeping system. Please note the new FLSA rules do not affect teachers, physicians and attorneys. 

If you have any questions about the new regulations, please contact the Salary Administration Office at 803-777-3111.  

FAQs, Training and More

The following resources will help supervisors, managers and employees prepare for the new FLSA changes. You can also review more detailed information about minimum wage and overtime compensation and timekeeping procedures.

Throughout the summer and fall semesters, Human Resources will be conducting training classes and webinars. Please check back often for a list of upcoming sessions. 

  • FLSA Implementation Plan [pdf] *REVISED 10/19* –  This plan includes a step by step list of tasks that HR Contacts and the Salary Administration Office are required to complete. 
  • Implementation Checklist [pdf] *REVISED 10/19* – Use this checklist to ensure you've completed every step required in the implementation plan above.   
  • Sample 1 (PBP-2-TR) & Sample 2 (PBP-2) [pdf] *REVISED 10/19* – The PBP-2-TR must be submitted to re-hire temporary salaried employees as hourly, and the PBP-2 must be submitted to re-hire dual employees as hourly. 
  • Implementation Webinar – Watch Rontreal Tyler and Belinda Ogorek's discussion on the FLSA implementation plan, and review their answers to questions from the participating audience. 
  • A Manager's Guide to Supporting Employees [pdf] – This guide provides managers and supervisors suggestions to lessen the emotional impact that FLSA changes may have on employees. 
  • FAQs for Managers [pdf] 
  • FLSA Basics [pdf] – This power point presentation provides a brief overview of the requirements that must be met in order to qualify for exemption, and the penalties employers face when they violate FLSA regulations. Review the recorded webinar to learn more.
  • FLSA Advanced [pdf] – This power point presentation provides information concerning FLSA provisions that will impact USC and specific occupations that will be affected. Various case scenarios [pdf] are provided to help managers and supevisors determine what is considered compensable work time for non-exempt employees. Review the recorded webinar to learn more. 
  • FLSA: Exemption Test Questionnaire [pdf] – Employees who earn more than $47,476 per year may be considered exempt, if they pass the “duties test”. Use this questionnaire to help determine the correct exemption status. Note: The new overtime rules do not include any changes to the “duties test”.
  • FLSA Guidelines for Specific Occupations [pdf] – Review these guidelines to determine if specific occupations such as coaches, academic advisors and post-doctoral fellows are considered exempt.
  • Good to Know for Non-Exempt Employees [pdf] – This is a good reference tool that provides all the quick facts employees need to know about timekeeping, overtime and more.
  • Compensatory Time FAQs [pdf] – Some employees may be compensated for overtime with paid time off from work (compensatory time) instead of wages. Review these FAQs for answers about compensatory time.
  • Work Time vs Non-Work Time [pdf] – Use this chart to learn if specific activities such as breaks, lunch hours and travel time are considered time worked.
  • ITAMS – The Payroll Office has many training guides, demos and FAQs on how to enter time into the university’s time and attendance management system.

Department of Labor

The Department of Labor has prepared the following resources to help you better understand the new overtime rules and how they affect higher education institutions.

  • DOL FAQs – Get answers to some of the most common questions regarding the new overtime rules.
  • DOL Fact Sheet: Overtime Final Rule [pdf] – This sheet provides a list of key provisions of the Final Rule.
  • DOL Guidance for Higher Ed [pdf] – Take an in-depth look at the background on FLSA white collar exemptions, categories of job occupations in the higher education sector which fall under these exemptions, and suggestions on how to determine the best options to ensure compliance with the new rules.
  • DOL Fact Sheet for Higher Ed [pdf] –This quick fact sheet lists the types of higher education jobs which may be affected and/or unaffected by the new rules, and provides some options to ensure compliance.