The new FLSA rules will not impact any of the federal employees in any way. These changes will just impact the local governments, the private sector workers, and the nonprofit sector employees. Two new rules have been introduced. First increases the salary basis threshold and the second ensures the periodic review of the specified threshold. The power to cover federal employees under these new rules resides with OPM but the agency has shown no inclination to use this power yet.
The details of the changes were released recently by the Department of Labor (DOL). It was also mentioned that these changes would have no impact on the federal employees as of now. Federal workers can only be covered only if the OPM makes some modifications in the FLSA regulations covering federal workers.
Currently, the employees belonging to the private sectors, the local government sectors, and the non-government sector are impacted by the changes. The employers in these sectors need to make changes to compensation policies as per the new rules.
The first change made in the rules is that there will be an increase in the salary basis minimum for coverage by the FLSA. It is currently $23,660 and it will increase to $47,476 per annum. The value of this increase is just a bit more than 100 percent.
The second change is that the revised threshold will further be reviewed at three years’ intervals. The review will be done only after studying the amount of wage growth achieved by the entire U.S. economy. The reviews would be done by DOL. The reviews would begin only after about 4 years as they will commence from the year 2020 only.
How to know if the Federal Employees are included in Future?
Though it is the fact that the new rules with regard to the salary based coverage which is under Fair Labor Standards Act (FLSA) will not impact the federal employees in any way but there is a possibility that they may include the federal workers in the future.
To know whether these rules cover federal workers or not, one needs to study the Part 551 of Title 5 of the Code of Federal Regulations. If the federal employees are included in the future, the agencies would need to revise its current operations as the other employers are doing right now.