The Obama administration released rules that will require employers, including colleges and universities, to pay overtime to more employees. The new regulation, which becomes effective on Dec. 1, increases the salary threshold for employees eligible for overtime from $23,660 to $47,476.
Many in higher education are concerned about the potential impact on student services and instruction. There are exemptions to the rule related to higher education, but those are primarily for employees providing instruction.
“The new rule will increase many lower-level, salaried employees into hourly workers who are eligible for overtime pay. But requiring such a dramatic and costly change to be implemented so quickly will leave many colleges with no choice but to respond to this regulation with a combination of tuition increases, service reductions, and, possibly, layoffs,” the American Council on Education said in a press release criticizing the rules.
The rules are expected to have a significant impact on college store management, so NACS is partnering with the College and University Professional Association for Human Resources to present a webinar at 1 p.m. Eastern May 25 on the new regulations. The webinar is free, but advanced registration is required.