New Fair Labor Standards Act (FLSA) Exempt Pay Rule

What's Happening?

The U.S. Department of Labor (DOL) is increasing the minimum salary threshold under the Fair Labor Standards Act (FLSA) to maintain overtime-exempt status.
The new minimum salary threshold is $1,127 per week ($58,656 per year). The previous minimum salary threshold was $844 per week ($43,888 per year).
These new rules go into effect January 1, 2025.

FAQs for Leaders/Managers and Employees

UHRM has created two FAQ pages to help campus with these changes:

Generally, all three requirements must be met for an employee to qualify as exempt from overtime under FLSA:

The employee must meet the “salary level test.”
- This means the employee must earn a minimum salary of $1,127 per week ($58,656 per year) starting January 1, 2025 regardless of their FTE or full-time/part-time status.
- This salary requirement does not apply to teachers, athletic coaches, or outside sales employees. For more information, see Fact Sheet #17S: Higher Education Institutions and Overtime Pay
The employee must pass the "duties test."
- This means the employee's primary duty (their most important responsibility) must qualify as an exempt duty under the relevant FLSA exemptions.
The employee must pass the "salary basis test."
- This means the employee's salary is generally fixed, and not reduced on the quality or quantity of work. (Not hourly or piece work/piece rate)

If you have any questions about the University's solutions to this new threshold, please contact your HR Contact.