University Leadership and the Office of Human Resources have continued preparations for compliance with the US Department of Labor’s (DOL) changes to the Fair Labor Standards Act (FLSA) regulations on overtime eligibility.

Effective July 1, 2024, the salary threshold requirement for overtime exemption (FLSA Exempt) will increase from the current $684/week ($35,705 annualized at FSU) to $844/week ($44,056.80 annualized at FSU) as part of a phased approach to implementing the published changes. To comply with federal regulations, individuals must earn at least the required minimum salary threshold to be considered FLSA-exempt or be reclassified as overtime-eligible.

Impact

As a reminder, employees who are already considered eligible for overtime pay (FLSA non-exempt) are not impacted—this includes most USPS and most OPS employees. Also, teaching faculty and Graduate Assistants are not impacted by the updates. Generally, employees who are currently FLSA Exempt (overtime ineligible) but make less than $44,056.80 ($844 per week) will be impacted. For FSU to ensure compliance, the following may occur:

• Some impacted employees will become overtime eligible (FLSA non-exempt) based on their job code assignment and a thorough review of the market for the role. All individuals in the job code will become eligible for overtime compensation for hours worked over 40 in a workweek. 
• Some impacted employees will remain FLSA Exempt based on their job code assignment. Individuals in these codes who fall below the new federal salary threshold will receive salary adjustments to the minimum and continue to be overtime ineligible for hours worked over 40 in a workweek.
• Exempt employees who work a part-time schedule may be impacted. If the employee’s weekly earnings do not meet the salary threshold, regardless of FTE, the employee will become overtime eligible (FLSA non-exempt).

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. 

Next Steps

We have been preparing for the federal changes since last Fall and updating data based on the final ruling. We are aware of multiple legal challenges filed against the ruling at this time and will be ready to adjust University plans should there be a need. In the meantime, we are planning to fully comply with the published regulations by July 1, 2024. Division leaders have received a list of impacted individuals for review. Human Resources will send notification of the required changes to impacted employees and their respective managers over the next week. Changes, where required, will automatically be updated in the OMNI-HR system and no department action will be required.

Questions? Please contact Shelley McLaughlin at sscopoli@fsu.edu.