Classification & Compensation
Fair Labor Standards Act (FLSA) Compliance
U.S. DEPARTMENT OF LABOR RULE CHANGE
On April 23, 2024, the U.S. Department of Labor (DOL) published changes to update
the minimum salary levels needed for positions to be exempt from overtime pay. The
DOL changes which are effective January 1, 2025, will increase USF's minimum salary
level from $844 on a weekly basis ($43,888 annually for 26.0 pay periods) to $1,128
weekly and $58,656 annually.
If a "salaried" employee is earning below the new exempt salaried threshold amount,
the employee may be affected by the changes. If an employee is affected, Human Resources
will notify the supervisor of potentially impacted employees.
For additional information on FLSA and , please choose the link provided, or visit the .
Regulation Update- Information & FAQs
Employee Information on FLSA Updates
Supervisor Information on FLSA Updates
FLSA FAQs: 2024 Regulation Updates
For any questions, comments, or concerns reach out to your manager or email CHR Classification & Compensation Team.
OVERVIEW OF FLSA
Classification & Compensation is responsible for correctly designating all positions as Exempt or Non-exempt under the Fair Labor Standards Act (FLSA).
EXEMPT EMPLOYEES
FLSA provides an exemption from the overtime pay requirements of the Act for certain positions and duties. Employees whose duties meet the tests for exemption are commonly referred to as "exempt employees." This means that the overtime provisions of FLSA do not apply to those positions, and employees within these positions are not eligible for overtime. It is important to note that exempt status must be determined based on the duties for that specific position. Titles alone are not sufficient to determine the status of a position under FLSA.
To qualify for exempt status, positions must meet all three (3) tests:
- Salary Level Test: The minimum weekly pay rate for exempt employees will be $1,128, or $58,656 annually.
- Salary Basis Test: Generally, exempt employees must be paid full salary for any week in which any work is performed. Variations in the work product or the actual hours worked does not impact compensation. The regulations are complex, and cases should be referred to the Classification & Compensation team.
- Duties Test: The specific position duties must qualify under one of the duties tests provided by the Act. The Classification & Compensation team utilizes these duties tests to make determinations when reviewing position descriptions. For more information on the duties tests, refer to the
NON-EXEMPT EMPLOYEES
Non-exempt positions are subject to the overtime rule and employees must be paid at
least one and one-half times their regular rate of pay for any hours worked beyond
40 in a workweek. A special provision of FLSA for public agency employers like USF
allows for the use of compensatory leave accrual at a rate of not less than one and
one-half hours for each overtime hour worked. Non-exempt employees at 新澳门六合彩内幕信息must complete
timesheets to precisely document work hours.
For additional information, see the
Previous FLSA Updates
On April 23, 2024, the U.S. Department of Labor (DOL) published changes to update the minimum salary
levels needed for positions to be exempt from overtime pay. The DOL changes which
are effective July 1, 2024, will increase USF's minimum salary level from $684 on
a weekly basis ($35,568 annually for 26.0 pay periods) to $844 weekly and $43,888
annually.
If a "salaried" employee is earning below the new exempt salaried threshold amount,
the employee may be affected by the changes. If an employee is affected, Human Resources
will notify the supervisor of potentially impacted employees.
On September 24, 2019, the U.S. Department of Labor (DOL) published final changes to update the minimum salary levels needed for positions to be exempt from overtime pay. The DOL rule increases USF's minimum salary level to $1,368 on a biweekly basis ($684 per week; $35,568 annually for 26.0 pay periods). Employees currently exempt from the existing DOL rule will become overtime eligible if their salary is below the new threshold as of January 1, 2020.
Two options are available for positions with salaries below the new minimum threshold:
- Maintain the current salary and become eligible for overtime pay; or,
- Maintain the exemption status by increasing the salary to at least the new threshold.