Overtime Rule Changes Could Cost ISU | WGLT

Overtime Rule Changes Could Cost ISU

May 25, 2016

Watterson Towers from the ISU Quad
Credit WGLT

Many businesses are figuring out how much new federal rules on overtime pay will cost them starting in December. The effect on Illinois State University could be in the two million dollar range.

The Obama Administration is nearly doubling the income cutoff for workers to be ineligible for overtime pay, to more than 47,000 dollars per year and changing the rules about what kinds of workers qualify even if they are salaried.

Illinois State University is still looking at pay rates, time sheets, and duties to decide who will get overtime for more than 40 hours of work per week.

Vice President for Finance and Planning Greg Alt says about 275 workers may be impacted by the change and the University might have to pay them an extra 2.2 million dollars based on past worker habits.

But, Alt says there are exemptions for some faculty, and administrative categories based on duties and supervisory roles that could reduce that estimate.

Some employers say it could be less expensive for them to raise some employee pay just above the threshold than to pay the overtime.

Alt says Human Resources staff will continue to evaluate the effect.