Dive Brief:
- Chronicle of Higher Education reports on a new change in federal labor law that will instantly make full-time employees eligible for overtime pay beyond 40 hours worked in a week.
- The Fair Labor Standards Act allows employees earning up to $47,000 to earn overtime pay, doubling the original salary threshold.
- Observers say the new rule will instantly create new budget concerns for smaller colleges and universities.
Dive Insight:
The new overtime rule is likely to have immediate impact in areas like student affairs and campus auxiliary, where parties, forums, concerts and other student-related events can require staff to remain on campus after hours. The increase in salary threshold may also impact administrative and support staff who work additional hours to prepare for accreditation reviews, annual reports and other data-analyzing tasks beyond the typical work day.
For colleges and university officials, these realities will require more nuanced looks at personnel hiring, full-time and part-time budget needs, and the potential shortfalls in service if a department is already short in personnel through hiring freezes or terminated position vacancies.