2024 FLSA Department of Labor Ruling
On April 23, 2024, the Department of Labor (DOL) announced a new salary threshold to qualify for overtime pay exemption under the Fair Labor Standards Act (FLSA). The new threshold applies to standard salary level exempt employees.
- Standard salary level exempt employees
Effective July 1, 2024, the salary threshold for exemption status will increase to $43,888. This means exempt employees making less than that amount will receive a salary increase to $43,888.
To comply with the DOL ruling, the July 1, 2024, salary increases for impacted exempt employees have been incorporated into the FY 2024-25 budget and Human Resources will directly communicate with both the exempt employee and their supervisor to provide details about the salary adjustments.
How does this ruling affect the University of Louisville?
The university will comply with the DOL’s ruling to increase exempt employees under $43,888 to $43,888.
When will these changes occur?
Exempt employees whose salary is below the $43,888 threshold will see an increase in their salary to $43,888 beginning July 1, 2024.
Didn’t this ruling happen before in 2016?
Yes. On May 18, 2016, the U.S. Department of Labor (DOL) released an update to the Fair Labor Standards Act (FLSA) that has raised the exempt status salary threshold from $23,660 to $47,476, effective December 1, 2016. Lawsuits were filed that challenged ruling, and the court stopped the rule from taking effect just days before the increase was set to take effect. The court also prohibited the DOL from automatically increasing the salary threshold without following certain requirements under the Administrative Procedure Act, such as providing notice and allowing the public an opportunity to comment.
What did the university do in 2016?
The university audited several exempt positions and transitioned them to nonexempt status. The actions were also re-evaluated and confirmed by a local third-party human resources consulting firm. Other positions remained exempt with adjustments made to the salary if it fell below the minimum threshold of $47,476.
What is the university’s plan of action?
Human Resources will directly communicate with both the exempt employee and their supervisor to provide details about the salary adjustments.
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