Classification & Compensation

Fair Labor Standards Act (FLSA) Compliance

U.S. DEPARTMENT OF LABOR RULE CHANGE

Updated November 21, 2024

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). 
 
For additional information on FLSA and how the rule applies to Higher Education institutions, please choose the link provided, or visit the Wage and Hour Division’s website.  

2024 FLSA Frequently Asked Questions - updated November 21, 2024

 1. What was the recent federal court decision impacting the Fair Labor Standards Act (“FLSA”) overtime rule?

A federal court recently struck down the Department of Labor’s (DOL) proposed changes to the FLSA overtime rule. The ruling invalidates DOL’s attempt to increase the minimum salary threshold required for employees to be classified as exempt from overtime pay.

2. What were the proposed changes to the salary threshold?

DOL’s new Rule aimed to increase the salary threshold for white-collar exemptions in two initial phases, followed by automatic increases every three years beginning July 1, 2027. The first phase took effect on July 1, 2024, raising the threshold to $43,888 annually ($844 per week). The second phase was set to increase it further to $58,656 annually ($1,128 per week) on January 1, 2025.

As a result of the court's ruling, the Rule and its increases to the salary threshold for exempt employees have been vacated, and the threshold reverts to the previous level of $35,568 annually ($684 per week).

3. Does this rule impact all employers?

Yes, this rule impacts employers nationwide who were preparing to comply with the new salary thresholds. This decision means that employers will continue to use the previous threshold of $35,568 annually ($684 per week) to determine overtime eligibility for white-collar employees.

4. Could there be further changes or appeals to the FLSA overtime rules?

Yes, there is potential for further appeals or revisions to DOL’s overtime rules. Central Human Resources will provide updates on any new developments, as the DOL may propose new changes or seek higher courts' guidance on this issue.

5. If I received an increase due to the July 1, 2024, FLSA adjustment, will that increase be taken away?

No. The University will not reduce your pay as a result of the recent federal court ruling.

6. If I transitioned from exempt to non-exempt due to the July 1, 2024, adjustment, will I remain non-exempt?

The University will continue to assess potential impacts from the court’s ruling. Colleges and departments should partner with CHR on how to proceed.

7. How can I stay informed about future updates on this matter?

CHR will be posting additional information and updates, including responses to frequently asked questions, on our website. Please visit USF's FLSA page (bookmark this page). 

8. Who can I contact if I have more questions?

If you have any questions or need further clarification, please reach out to our Compensation Team or your HR Business Partner for assistance.

For previous announcements, see "previous announcements" at the bottom of this page. 

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:

  1. Salary Level Test: The minimum weekly pay rate for exempt employees is $684, or $35,568 annually.
  2. 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.
  3. 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 fact sheets available on the Department of Labor's website.

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 USF must complete timesheets to precisely document work hours.
For additional information, see the U.S. DOL Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA).

Previous FLSA Updates

April 23, 2024, U.S. DEPARTMENT OF LABOR RULE CHANGE (2 of 2)

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 how the rule applies to Higher Education institutions, please choose the link provided, or visit the Wage and Hour Division’s website.  

April 23, 2024, U.S. DEPARTMENT OF LABOR RULE CHANGE (1 of 2)

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.