Key Issues

FLSA Overtime News and Resources

Alert: On April 23, 2024, the Department of Labor (DOL) issued 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. Read more about the rule and register for the May 8 webinar covering the provisions of the final rule and its impact on higher education.

Details

The final rule issued by the DOL is summarized below.

  • Standard Salary Level: The final rule increases the minimum salary threshold to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025. Institutions will need to make all necessary adjustments by July 1, 2024, in order to be in compliance with the final rule.
  • Salary Level for Highly Compensated Employees: The final rule increases the salary level for the Highly Compensated Exemption (HCE) from its current level of $107,432 to $132,964 per year on July 1, 2024, and then to $151,164 on January 1, 2025.
  • Duties Test: The rule does not make any changes to the duties requirements.
  • Automatic Updates: The threshold will be automatically updated every three years by tying the threshold to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region. The automatic updates will begin on July 1, 2027.

What's Next

See CUPA-HR’s brief statement on the new rule.

Webinar

Recent News

Advocacy Letters, Comments, and Briefs

Key Resources

DOL Fact Sheets
  • DOL Fact Sheets (17A-17U) - Read now
  • Fact Sheet #82: Fluctuating Workweek Method of Computing Overtime Under the Fair Labor Standards Act (FLSA) / “Bonus Rule” Final Rule (July 2020) – Read Now
  • Fact Sheet #17S: Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA) (September 2019) – Read Now
  • DOL Q&A - Read now
DOL Opinion Letters
  • FLSA2019-4: Application of the teacher exemption to Nutritional Outreach Instructors employed by a public university (April 2019) – Read Now
  • FLSA2018-6: Coaches and the teacher exemption under section 13(a)(1) (January 2018) – Read Now
  • FLSA2005-42: Academic advisors and intervention specialists under section 13(a)(1) (October 2005) – Read Now
DOL Field Assistance Bulletins
  • FAB 2020-5: Employers' obligation to exercise reasonable diligence in tracking teleworking employees' hours of work (August 2020) – Read Now

2019 Final Rule: History and Insights

Current Obligations and Rulemaking History

Changes to overtime pay requirements have been implemented through regulations under both the Obama and Trump administrations. In May 2016, the Obama administration’s DOL issued a final rule increasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. However, court challenges prevented the rule from taking effect, and it was permanently enjoined in September 2017. After the Trump administration started the rulemaking process anew, the DOL issued a new final rule in September 2019 raising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. This final rule went into effect January 1, 2020, and remains in effect today.

Key Resources

For HR practitioners navigating the new proposal, resources associated with the 2019 final rule can offer valuable insights. Understanding past changes can equip professionals with a broader perspective and aid in anticipating challenges and opportunities presented by the latest DOL proposal.

Department of Labor Insights

  • DOL Fact Sheets (17A-17U) - Read now
  • Higher Ed-Specific Fact Sheet #17S (September 2019) - Read now
  • DOL Q&A - Read now

CUPA-HR Insights

  • The Impact of the 2019 FLSA Overtime Rule on Higher Education - Read the brief
  • White Paper: FLSA Exemption Guidance & Compliance Best Practices – Read the White Paper

 

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