As previously communicated, the Office of Human Resources has been closely monitoring the US Department of Labor's (DOL) proposed changes to the Fair Labor Standards Act (FLSA). A task force of faculty and staff from Florida State University departments was also formed to review the potential impact of the DOL proposed rule and provide feedback on the recommended methodology for implementation to ensure that FSU complies with the law while having the least negative impact on employees. We have also been soliciting input on this topic across campus.

On April 23, 2024, the DOL released the final rule revising FLSA regulations. The new regulations outline a phased approach to the implementation of a revised minimum salary threshold before an employee can be classified as exempt from overtime pay under the Executive, Administrative, and Professional exemption. The first phase is effective July 1, 2024. In addition, the final rule includes language for automatic updating of the minimum salary threshold every three years.

The rule will impact employers across the country, including Florida State University. These changes may impact some FSU employees who are currently exempt (overtime ineligible); nonexempt (overtime eligible) FSU employees will not be affected.

Now that the final rule has been released, we continue to evaluate the impact on university positions and refine our approach based on the DOL requirements and feedback we receive from departments. Recommendations on how the university will address these changes will be set centrally and communicated to departments and impacted employees over the next few months.

Impact

Nonexempt (overtime eligible) employees are not impacted—this includes most USPS and most OPS employees. Also, the updates will not impact teaching faculty and Graduate Assistants. 

Generally, employees who are currently exempt (overtime ineligible) but make less than the new salary threshold based on weekly earnings may be impacted. 

• Some impacted employees will become nonexempt. They will become eligible for overtime compensation for hours worked over 40 in a workweek. 
• Some impacted employees may receive salary adjustments and remain exempt. They will continue to be ineligible to earn overtime for any time worked over 40 hours.
• A small number of exempt employees making more than the new FLSA salary threshold will become nonexempt if their job code as a whole moves to nonexempt. 
• Exempt employees who work a part-time schedule may also be impacted.

Employees who move from exempt to nonexempt will have more detailed timekeeping requirements, but nothing about their work will change. They will not experience changes to their duties, pay, benefits, or leave accrual rates. The final determination of which impacted exempt employees falls into which categories is under review. Information will be communicated in mid-June to allow advance notice of any impact to departments and employees.

Next Steps

Human Resources will continue to work with university leadership and departments to help ensure we fully comply with these new regulations. We will continue to communicate with the campus and notify affected employees. We have also updated the FLSA webpage to help answer questions about these changes. Resources on this webpage will be updated on an ongoing basis.

Questions? Contact Shelley McLaughlin at sscopoli@fsu.edu.