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

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:

1. Salary Level Test: The minimum weekly pay rate for exempt employees will be $1,128, or $58,656 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).