FLSA Changes - Resources for Employees and Supervisors
UPDATED OCTOBER 2024
Overview:
On April 3, 2024 the US Department of Labor (DOL) issued a final rule on the update to the salary threshold for "white collar" exemptions to the Fair Labor Standards Act (FLSA) overtime pay requirements.
- Effective July 1, 2024, all employees who earn less than $43,888 (A-Basis), $32,916 (C-Basis) or $844 weekly will become nonexempt unless he or she qualifies for an exemption.
- Effective January 1, 2025, all employees who earn less than $58,656 annually or $1,128 weekly will become nonexempt unless he or she qualifies for an exemption.
SMPH Human Resources along with supervisors, are reviewing potentially impacted employees to determine whether their employees are exempt from the impact of the change or whether the employee should have their exemption status changed to nonexempt as a result of their not meeting the updated salary threshold.
If an employee’s rate of pay is below the new minimum salary level, that employee (unless they qualify for one of the exceptions, such as the “teacher” exception) must be nonexempt. Pay for part-time appointments cannot be pro-rated under the new regulations. For example, an employee with a .5 FTE appointment with a base rate of $90,000 is actually paid $45,000. $45,000 is below the new minimum salary threshold, and the employee will be nonexempt.
*Currently, there is pending litigation around the DOL salary threshold change. At this time we are moving forward with our planning, but please note that the change may not go through as planned.
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:
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:
|
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