What Obama's Overtime Rule Could Mean for Colleges

May 20, 2016
  • Industry News

This week the Obama administration released a final rule that will extend overtime pay to millions more American workers, including hundreds of thousands of lower-level salaried employees on college campuses. Much of the attention has focused on the impact on postdoctoral fellows, the overworked, underpaid backbone of the academic research enterprise.

But it’s not just postdocs who will benefit from the rule, which will double the annual salary cutoff below which workers are generally eligible for overtime pay, raising it to $47,476. Many entry-level and midlevel professionals — from admissions officers to athletic trainers to student-aid administrators — will qualify too.

That means the rule will be expensive for colleges, many of which already struggle with high labor costs. And that’s where the downside comes in: Already college groups are warning of consequences when the rule kicks in, at the start of December.

Read more at The Chronicle of Higher Education: http://chronicle.com/article/What-Obama-s-Overtime-Rule/236539