Fair Labor Standards Act (FLSA) Overtime Exemption Regulation
Updated as of April 25, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) released the highly anticipated
final rule to alter the overtime pay regulations under the Fair Labor Standards Act
(FLSA). The rule increases the minimum salary threshold to $43,888 on July 1, 2024,
and then to $58,656 on January 1, 2025. The rule also implements automatic updates
to the threshold that will occur every three years. As a result, some staff positions
that are currently classified as exempt from overtime will need to be reclassified
as nonexempt under the new regulations. Per the FLSA requirements, a position must
meet both the salary threshold and the duties test to be considered exempt from overtime
eligibility.
Human Resources has a project team that is charged with managing this implementation,
including communication to impacted departments and employees.
Overview of FLSA Overtime Impact to 澳门开奖结果
In May 2016, the Department of Labor revised the Fair Labor Standards Act (FLSA) requiring
organizations to review position classifications to determine overtime eligibility. At
that time, Human Resources completed a review of exempt-level positions and classified
each position according to the FLSA requirements. Based on the final determination
some positions were reclassified and became eligible for overtime effective November
12, 2016.
On November 22, 2016, a U.S. district court judge from Texas issued a preliminary
injunction postponing the effective date of the overtime rule. Despite the court ruling
halting the FLSA changes, 澳门开奖结果 maintained the course of action
that went into effect November 12, 2016. The University continued to closely monitor
the issue while awaiting the court鈥檚 final decision.
In spring 2017, 澳门开奖结果 made the decision to set an institutional salary threshold of $30,000 for exempt positions. Per the FLSA requirements, a position must meet both the salary threshold and the duties test to be considered exempt from overtime eligibility. Effective July 1, 2017 positions that met both the institutional threshold and the FLSA duties test were reclassified from non-exempt to exempt.
On September 24, 2019, the U.S. Department of Labor (DOL) released the final rule increasing the salary threshold for white-collar exemptions to the federal overtime pay requirements under the Fair Labor Standards Act to $35,568 effective January 1, 2020.