Impact of Fair Labor Standards Act

Dear Colleagues,

I am writing to you about an important change to the Fair Labor Standards Act (FLSA), which governs federal minimum wage and overtime pay requirements. The new rule takes effect on Dec. 1, 2016, and will impact employees across the country.

In order to comply with the new rule, organizations such as Johns Hopkins Health System had to conduct a comprehensive reassessment of job classifications and positions based on a new salary threshold of $47,476—more than double the current threshold the federal government uses to determine whether an employee is eligible or exempt from overtime pay.

The Johns Hopkins Health System Department of Human Resources' Compensation Office completed a thorough analysis of all jobs to identify which positions would be affected. Based on this analysis, we anticipate that approximately 10 percent of the entire Johns Hopkins workforce will be impacted by the federal law change.

We have notified administrators who have employees who are affected by the FLSA change and how the employees' status changes. Affected employees will receive a communication outlining the changes they should expect.

The Johns Hopkins Health System has chosen to begin implementation on Sunday, Nov. 27, to align with the beginning of a pay period. The Compensation Office will ensure that any necessary changes to status or pay will be uploaded to SAP. Please note that all employees whose FLSA category shifts to nonexempt will maintain leave accrual at their current rate.

Please see the attached frequently asked questions for more details to help you communicate with your employees about the changes. To make sure you understand the changes and to ask questions, we are also holding a series of manager open forums in The Johns Hopkins Hospital’s Chevy Chase Bank Auditorium (Zayed 2119) on the following dates and times:

• Tuesday, Nov. 1
  • Session 1: 11 a.m. to noon
  • Session 2: 1 to 2 p.m.
  • Session 3: 3 to 4 p.m.
• Monday, Nov. 7
• Session 1: 9 to 10 a.m.
• Session 2 11 a.m. to noon
• Session 3: 1:30 to 2:30 p.m.
• Friday, Nov. 18
• Session 1: 2 to 3 p.m.
• Session 2: 4 to 5 p.m.

If you have any questions about this, please contact FLSA@jhmi.edu.

Thank you.

Bonnie Windsor
Senior Vice President of Human Resources
Johns Hopkins Medicine