CABE Journal - January 2017

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EDUCATION

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Connecticut Association of Boards of Education Vol. 21, No. 1

The Leading Voice for Connecticut Public Education

New Wage and Overtime Rule May Still Affect Districts

Connecticut Association of Boards of Education Inc.

Since May of 2016, when the U.S. Department of Labor (DOL) announced a final new wage and overtime rule, employers have spent a great deal of time assessing employee salaries and duties and adjusting budgets and personnel to comply with the new regulations. The rule, scheduled to become effective on December 1, 2016, would have raised the threshold salary below which employers are required to pay overtime to employees who work over 40 hours a week. The threshold would almost double, changing from $23,660/year ($455 per week under Federal law, $475 under Connecticut law) to $47,476 annually or $913 a week, with upward adjustments scheduled every three years. This meant that all workers, even those performing executive, administrative, or professional jobs, who would otherwise be exempt, earning between $23,660 and $47,475 would automatically become non-exempt, i.e., eligible for overtime pay. However, the rules never went into effect. When the U.S. Department of Labor published its final rule, twenty states, led by the State of Nevada, filed suit, requesting an injunction to prevent the rule from going into effect and seeking to invalidate the regulation, arguing that the DOL was infringing on states’ rights and that the rule conflicted with the Congressional intent of the underlying law.

On November 22, 2016, U.S. District Court Judge Amos Mazzant, in the Eastern District of Texas, granted the plaintiff ’s request for an injunction, indefinitely postponing implementation of the rule and declaring the decision to be effective nationwide. The U.S. DOL appealed the decision, but the appeal will not be heard during President Obama’s term, and the rule may, in fact never see daylight. So, what does all this mean for Connecticut school districts? In many cases, schools have already communicated with employees about impact of the changes, including notification of new eligibility for overtime and issuing raises to currently exempt employees. Now they are faced with a dilemma. As one school finance officer said, “that makes it hard to put the genie back in the bottle.” Pursuant to the preliminary injunction, school districts may, for the foreseeable future, maintain their current salary structure for covered employees. Schools should be sure to review all collective bargaining contracts of staff who would be affected by the new rule to determine what action might be necessary both to meet the obligations of the contract and to comply with the Fair Labor Standards Act (FLSA), in case the rule does in fact become law. On the plus side, a large number of school district personnel are not covered by the rule. Under the FLSA overtime and wage provision, “teachers” are exempt if See SCHOOL DISTRICTS page 2

81 Wolcott Hill Road Wethersfield, CT 06109-1242

Rebecca Adams

SENIOR STAFF ATTORNEY, CABE

January 2017

“Out of the public schools grows the greatness of a nation.” - Mark Twain, Nov. 23,1900

Winter Fun

Can Housing Conversations Help Your Town or City? Robert Rader

EXECUTIVE DIRECTOR, CABE

Housing is one of the issues that affect school districts in many ways. Whether it’s through school enrollment, ability to attract staff and how people in our local communities vote on budgets, housing, like demography and diversity, is critical to our understanding of the needs of our communities.

While I always believed housing to be important, I was surprised what a good turnout (SRO!) there was for the Trends workshop on housing at the CABE/ CAPSS Convention, especially considering the other great workshops in the Friday morning schedule. We were lucky to have three excellent presenters: Alex Knopf, Visiting Lecturer See HOUSING page 10

View from the Capitol Patrice A. McCarthy

DEPUTY DIRECTOR AND GENERAL COUNSEL, CABE

With the convening of the General Assembly on January 6, the “long” legislative session begins, with an adjournment scheduled for June 7. The Legislature faces significant challenges in developing the 2017-19 biennial state budget in an era of fiscal constraints and ongoing needs for programs and services to meet the needs of the citizens. With 30 new members of the House of Representatives and 4 new State Senators, it is an important opportunity to make legislators aware of the successes and challenges in our elementary and secondary public schools.

2016 Convention Recap

See You in Court

The Policy Corner

CABE: Working for You

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