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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 effective January 1, 2025.
This means about 1,700 employees will change from salaried and overtime-exempt to hourly and overtime-eligible. For these 1,700 employees, they’ll become overtime-eligible and will need to begin entering time worked starting January 1, 2025 into Kronos, the university’s timekeeping system for hourly employees.
If you have access to the HR Information Library, you can run a report in the FLSA folder that will identify impacted employees. The report name is: Sal to Hrly Change ($58,656)
Starting January 1, these employees will be paid hourly but will continue to accrue vacation as Exempt Staff.
They will also need to track their time in Kronos starting January 1, 2025 unless their salary is increased to meet or exceed the new threshold.
If you have any questions about the University's solutions to this new threshold, you can reach out to HR. To find your HR contact, click here.
Human Resources is providing a PowerPoint slide deck, complete with speaker notes, to help summarize the changes in a brief 5-10 minute department meeting. Please download and hide/show slides as needed. Any feedback or questions about the slides can be shared with Kevin Turner at kevin.turner@utah.edu
UHRM determines the exemption status of each position on campus. All job codes are determined to be Exempt or Non-Exempt based on the responsibilities of their position. The job code table will indicate whether a position is Exempt or Non-Exempt.
If your employee is in a job code exempt from FLSA overtime rule and earns at least $1,127 per week ($58,656 per year), they will be Exempt Salaried and are not entitled to overtime under FLSA. Otherwise, their position will be Exempt Paid Hourly.
NEW HRIL REPORT: If you have access to the HR Information Library, you can run a report in the FLSA folder that will identify impacted employees.
All impacted employees and their supervisors will receive an email from HR with additional details on December 2024.
Please check your department for employees who are in exempt job codes and are paid below $1,127 per week ($58,656 per year).
NEW HRIL REPORT: If you have access to the HR Information Library, you can run a report in the FLSA folder that will identify impacted employees.
Yes, they will log into Kronos just like Non-Exempt hourly employees and will be required to clock hours. Exempt Paid Hourly employees will be eligible for overtime which is paid at 1.5 times the hourly rate for all hours worked over 40 hours per workweek.
There are two ways to clock time, either by using a punch clock (if your department has one) or logging into Kronos through CIS. In December 2024, impacted employees and their supervisors will receive a link to the training on how to track hours.
Employees who work multiple positions exempt from FLSA on campus will remain salaried as long as the total compensation of all exempt records is greater than or equal to $844 per week ($43,888 per year), regardless of FTE.
Yes, the new salary threshold does not apply to some position types on campus, including:
These positions will remain salaried even if they are below $1,127 per week ($58,656 per year).
When completing a hire ePAF or a job edit ePAF, the compensation rate will convert to hourly if:
NEW HRIL REPORT: If you have access to the HR Information Library, you can run a report in the FLSA folder that will identify impacted employees.