On May 23, 2016, the Department of Labor published “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Computer and Outside Sales Employees” — known as the “Overtime” final rule — which updates the regulations for determining whether white collar salaried employees are exempt from the Fair Labor Standards Act's minimum wage and overtime pay protections. The rule covers employees at Institutions of Higher Education, including those funded by NIFA grants. The rule will entitle most salaried white collar workers, including those at colleges and universities, earning less than $913 a week or $47,476 a year to earn overtime pay for hours worked over 40 hours per week. The rule contains some exceptions, such as Bona Fide teachers.
NIFA grantees will have to determine whether each employee funded under NIFA grants is exempt or nonexempt using the criteria in the Fair Labor Standards Act. NIFA has prepared a Frequently Asked Questions to help NIFA grantees with implementation of the Overtime Rule. The Department of Labor has detailed resources, including a fact sheet and implementation guidance, available on the Department of Labor website.
Grantees may need to modify their budgets to cover increased personnel costs. To request a budget modification, the grantee must contact Awards Management Division at either awards@usda.gov or by using the Administrative contact listed in their grant award.