FLSA Changes - Resources for Employees and Supervisors

This KB should be used as a resource to employees whose compensation will fall below the updated Department of Labor (DOL) salary threshold for the exemptions to the Fair Labor Standards Act's (FLSA) overtime pay requirements and have had a change to their exemption status. It is also intended to be used by supervisors of employee's who have had an exemption change.

Updated December 5, 2024

Notice: On November 15, a federal judge in the Eastern District Court of Texas ruled to strike down the Fair Labor Standards Act (FLSA) overtime final rule. The July 2024 and January 2025 salary thresholds are no longer in effect, and the triennial automatic updates will not take place. The planned increase for January 1, 2025, is no longer in effect.

After careful consideration, UW-Madison is temporarily holding on the decision to revert to the $35,568 per year threshold. UW-Madison will continue using $43,888 per year (or $844 per week) until further notice.

Definitions:

Exempt status: Exempt positions are considered salaried positions that do not normally receive additional compensation for overtime work. Employers pay you a salary instead of an hourly wage. 

Non-exempt status: Fair Labor Standards Act (FLSA) regulations protect your position. By state and federal law, you must receive overtime pay if you work more than 40 hours in a work week. Employers pay you on an hourly basis. 

Campus has created several helpful resources to better understand what a change in exemption status means for an employee:

This table provides resources for employees moving to non-exempt FLSA status
Exempt to Non-Exempt This web page outlines what changes to expect and what will stay the same for an employee moving from exempt to non-exempt. 
Academic Staff moving from exempt to non-exempt  This document outlines impacts to benefits, leave and other changes for Academic staff moving from exempt to non-exempt
University Staff moving from exempt to non-exempt  This document outlines impacts to benefits, leave and other changes for University staff moving from exempt to non-exempt
FAQ about Exempt to Non-Exempt Changes due to Salary This web page provides many FAQs around employees moving from Exempt to Non-Exempt due to salary
DOL Wages and FLSA This is a link to the Department of Labor website that outlines the Fair Labor Standards Act
Recorded FLSA Information Session  This is a link to a video presentation that has been recorded for employees moving from exempt to non-exempt 
Access the Timesheet This is a link to instructions on how employees can access their timesheet. A change to non-exempt status will require employees to complete a timesheet for all hours worked 
Entering Time

This is a link to instructions on how to record time worked. The timesheet should be completed daily: 

  • Your change to Non-Exempt Status requires you to complete a timesheet for all hours worked.
  • You will receive hourly pay
  • Report time in quarter-hour increments
  • You will receive overtime pay or compensatory time off for all hours worked over 40 in a workweek 
Managing the Time and Absence MSS Dashboard in HRS

Supervisors: This is a link to a KB that outlines how supervisors manage time and absence in the manager self service dashboard in HRS. 

    Notes about a change from Exempt to Non-Exempt

    Academic Staff Non-Exempt Employees:

    • Receive overtime pay for hours over 40 in a work week
    • Are paid an hourly wage
    • Are NOT eligible for night and weekend differential
    • Are NOT eligible for holiday premium pay
    • DO receive on-call pay when applicable 

    Additional Information about overtime and employee category:

    • Overtime must be pre-approved and is at the discretion of the supervisor/employing unit
    • 100% full time non-exempt employees must use leave time if they work less than 40 hours in a week. Non-exempt employees record leave time in 15-minute increments 
    • Academic staff moving from exempt to non-exempt remain Academic Staff. There is no change to benefits
    • Academic staff non-exempt employees cannot convert to University Staff under the employee choice program


    Keywords:
    FLSA, exempt, non-exempt, fair labor standards act, DOL 
    Doc ID:
    137996
    Owned by:
    Allyson H. in SMPH Human Resources
    Created:
    2024-06-19
    Updated:
    2024-12-05
    Sites:
    SMPH Human Resources