2024 FLSA Department of Labor Ruling FAQs
What is the Fair Labor Standards Act (FLSA)?
The FLSA, administered by the Department of Labor, is a federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and in Federal, State, and local governments.
What does it mean to be exempt or non-exempt?
Whether or not an employee is eligible for overtime pay is determined by the regulations in the Fair Labor Standards Act (FLSA). Non-Exempt employees must receive overtime pay at time-and-a-half for hours worked over 40 per week.
To determine if an employee is in an "exempt" status position, they must pass all three tests:
- Be paid on a fixed salary basis, not hourly;
- Duties must pass tests under executive, administrative or professional requirements; and
- Salary must be above the minimum threshold of $43,888 (effective July 1, 2024).
If any of these tests are not met, the employee shall be considered non-exempt, and eligible for overtime. Non-exempt employees must be paid for every hour worked.
What is changing in the FLSA rule in 2024?
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). 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.
Does the University of Louisville have to comply with this new overtime rule?
Yes, this is a federal mandate and the university must comply.
Who will be impacted by this change to the FLSA Overtime Rule?
Exempt employees who make less than $43,888 as of June 30, 2024.
How will the rule change affect staff members who work less than full time?
The new ruling does not allow for prorated time. Part-time employees in a job title classified as exempt, but that do not meet the salary threshold of $43,888, must be considered non-exempt, report their hours and are eligible for overtime pay (straight overtime pay to 40 and time-and-a-half pay over 40). If the employee changes their standard hours there will be a review to determine if the exempt salary threshold is met or if the job title will remain non-exempt.
Where can I get more information about the new FLSA Overtime Rule?
You can find complete information of the new rule on the DOL’s Website and the Human Resources FLSA Website. Please contact comphr@louisville.edu with any additional questions.