2024 Changes to the Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) is the United States’ federal wage and hour law, administered by the US Department of Labor (DOL). Among other things, it establishes the federal minimum wage and sets overtime pay requirements for employees in the private and government sectors.
Under the FLSA, some employees are exempt from the wage and overtime provisions of the law and some are nonexempt. The FLSA requires that all nonexempt workers be paid overtime (usually one-and-one-half times their regular rate of pay) for all hours worked over 40 in a workweek.
Exempt employees are considered “salaried” and do not earn any overtime pay for working over 40 hours in a workweek. They must also perform certain types of job duties to qualify as exempt. At FSU, most Administrative and Professional (A&P), Executive Service (AEX), and Faculty positions are FLSA exempt.
Nonexempt employees are considered “wage earning” and must be paid overtime for all hours worked in excess of 40 in a workweek (Fri – Thurs). At FSU, most University Support Personnel System (USPS) and Other Personal Staff (OPS) positions are FLSA nonexempt.
On April 23, the Department of Labor announced changes to the Fair Labor Standards Act (FLSA) that include increases to the standard salary level required before an employee could be classified as exempt from overtime pay for executive, administrative, and professional (EAP) employees and other salary-based exemptions. The changes also include a mechanism to routinely update the salary thresholds to reflect current earnings data every three years.
Currently, to be classified as FLSA exempt under the EAP exemption an employee must:
- Perform primarily executive, administrative, or professional duties as defined under DOL regulations; AND
- Earn at least $684 per week, or $35,705 annually at FSU, paid on a salary basis.
The first phase of the final ruling will increase the exemption salary minimum effective July 1, 2024. Additional communication is forthcoming.
Currently exempt classifications may be subject to changes based on the final ruling. You will not be affected if you are currently classified as a nonexempt employee.
Part-time employees will be impacted if they are currently classified as exempt but make less than the new salary threshold effective July 1st, while working part-time.
Teachers are FLSA exempt, regardless of their annual/weekly salary, if their “primary duty is teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge.” See DOL Fact Sheet #17D. Most faculty positions, including all tenure-stream positions and all FSUS teachers, qualify as FLSA exempt under this “teaching exemption” and will not be affected by the changes. Non-teaching faculty, such as curators, university librarians, and research faculty will be impacted by these changes if they do not meet the new salary threshold.
The Office of Human Resources, in collaboration with the Office of General Counsel and Central University Administration, has been monitoring the DOL and developing an approach to these federal regulatory changes that comply with the law while having the least negative impact on FSU employees.
Human Resources has been analyzing all university positions and evaluating impacted job codes to determine the best approach to compliance. At this time, the University anticipates a multifaceted approach that includes the following:
- A&P employees are the most likely to experience changes due to the FLSA regulation changes.
- Most USPS employees are nonexempt and will experience no changes as a result of the new FLSA regulations. A small number of currently exempt USPS job codes may become nonexempt, overtime-eligible (pre-approval of any overtime hours will be required), and will have new timekeeping procedures. Impacted employee’s pay, benefits, and leave accrual rates will not change.
- OPS employees who are currently FLSA nonexempt will experience no changes as a result of the new FLSA regulations. OPS employees who are currently exempt and make less than the new salary minimum are being evaluated and may be moved to nonexempt status. Any OPS exempt employee moved to nonexempt status will become overtime eligible (pre-approval of any overtime hours will be required) and will have new timekeeping procedures.
- Part-time employees of all types may become FLSA nonexempt if their weekly pay while part-time is under the new FLSA salary minimum for exempt employees. While they are nonexempt, they will be required to track their hours, but their pay rates, benefits, and leave accrual rates will not be impacted.
- Many faculty members will be unaffected by the FLSA changes because they meet the FLSA’s “teaching exemption.” Some specialized faculty members who do not teach may be impacted (including those working part-time). Impacted faculty members will either remain exempt and receive pay increases to meet the new minimum or become nonexempt. Any specialized faculty reclassified to nonexempt will become overtime eligible (pre-approval of any overtime hours will be required) and will have new timekeeping procedures.
The University will continue to review and communicate changes to campus departments.
No. These changes are driven by changes to federal law that will apply to employees across the United States, not by FSU’s policy-makers or individual departments. The University has and will continue to consult with departments across campus on factors impacting FSU’s response to these regulatory changes. However, guidelines will be established centrally to ensure the University’s response is consistent, non-discriminatory, sustainable, and legally compliant.
In some cases, employee classifications may change from FLSA exempt to non-exempt. If you are in a position that is re-classified from exempt to nonexempt, you will become eligible to earn overtime wages if you work over 40 hours during a given week. This may change the way you report your hours worked, to document the time you are eligible for overtime earnings.
No, there is limited funding available to raise salaries to the new salary threshold. The University is already proactively looking at salaries and specific job codes. While some adjustments may occur, they will be based on many factors so employees should not automatically expect a salary increase due to the ruling.
No, employees currently in nonexempt positions will not be affected.
To stay up-to-date on the status of these federal regulatory changes, check the Human Resources Fair Labor Standards Act (FLSA) page, where we will post additional information as soon as it becomes available.
Questions? Please email the Compensation Project Team at compproject@fsu.edu.
