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). Per the final rule, the new threshold applies to standard salary level exempt employees. Effective July 1, 2024, the salary threshold for exemption status increased to $43,888. This means exempt employees making less than that amount received a salary increase to $43,888. To comply with the DOL ruling, the July 1, 2024, salary increases for impacted University of Louisville exempt employees were incorporated into the FY 2024-25 budget, and Human Resources directly communicated with both the exempt employees and their supervisors to provide details about the salary adjustments.

Also, per the DOL rule, effective January 1, 2025, the salary threshold for exemption status will increase to $58,656. At that time, the exemption status of employees who do not meet the new threshold will change from exempt to non-exempt. Human Resources will once again commuicate with impacted employees and their supervisors about employees' change in exemption status.

Watch the Department of Labor summary video of the ruling.

Salary Adjustments and Leave Accrual

The change in impacted employees’ status to non-exempt will not adversely affect employees’ annual salary, and employees’ elected benefits for 2025 will not change. Leave/accrual for employees that have 12 or less years will be moved to a grandfather accrual group and will continue to accrue leave at the rate they are now. Employees over 13 years have already maxed the accrual rate.

Transition Timeline

  • Impacted employees’ last monthly paycheck will be issued for the month of December on December 20, 2024, and account for hours worked from December 1, 2024, to December 31, 2024 (accounting for the holiday schedule). 

  • Effective January 1, 2025, impacted employees will be paid biweekly, rather than monthly. 

  • Non-exempt employees must submit and supervisors must approve via Workday employees' time sheets for hours worked from January 1, 2025, to January 11, 2025, by noon (12 p.m.), Monday, January 13, 2025. 

  • Non-exempt employees’ first biweekly paycheck will be issued on Friday, January 17, 2025.

  • Non-exempt employees and their supervisors will follow this process moving forward per the 2025 Biweekly Payroll Processing Calendar.

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