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Revisions to University Policy No. 4320, Guidelines for the Fair Labor Standards Act

From: Human Resources

Effective January 1, 2020, changes made to the federal Fair Labor Standards Act (FLSA) went into effect. To adhere to these changes, Virginia Tech has made the following revisions to University Policy No. 4320, Guidelines for the Fair Labor Standards Act:

  • Updated policy language clarifies provisions and updates within the FLSA. In particular, the salary basis amount per FLSA exemption tests has been updated from $455 to $684 per week. 
  • The policy reflects the current federal minimum wage rate of $7.25 per hour and language was included to inform of the Department of Labor’s requirement that all workers performing work on or in connection with federal contractors covered by Executive Order 13658, Establishing a Minimum Wage for Contractors, be paid a minimum of $10.60 per hour. 
  • Language was added to reflect an HR-led initiative to increase the university’s minimum annual salary beyond the regulatory requirement for all full-time, benefits-eligible staff employees to $24,960, which is the equivalent to a $12 per hour rate. 
  • Policy language was added by the university encouraging hiring managers to meet a minimum salary of $40,000 per year, which is the equivalent of $769 per week, for exempt positions.

For questions about these changes, contact the HR Service Center at hrservicecenter@vt.edu or 540-231-9331 and ask to speak with the Compensation Team.