Overtime Rule Update
The U.S. Department of Labor announced the updated overtime rule in the Fair Labor Standards Act on April 23. The updated Department of Labor rule raises the salary threshold for determining who is exempt from required overtime pay. While court challenges of the final rule are possible, Human Resources staff are reviewing data and working with leadership to determine the positions likely affected by the new regulations.
UA is committed to a smooth transition for employees affected, and individuals will be contacted once final determinations have been made. If the rule is blocked by the courts, which is likely, UA will reassess and update the campus.
Potential Changes:
The rule would take effect in two stages and does the following:
- Establishes $43,888 as the salary threshold required to be exempt from overtime pay requirements, effective July 1, 2024.
- Increases the salary threshold to $58,656, effective January 1, 2025.
- Requires salary threshold increases every three years based on the latest earnings data.
It could require:
- Some staff whose annual base salary is below the new threshold may transition to hourly (non-exempt status).
- Other affected employees may receive a pay adjustment to maintain exempt status.
Who is Affected:
Exempt staff members currently earning less than the updated threshold may be affected. Once HR has reviewed all data and determined who will be affected, individuals will receive a letter from their supervisor with more details.
Next Steps:
- Employees do not need to take action at this time.
- If these changes apply to you, HR will notify your supervisor and you of any changes to your status.
- Training will be provided for supervisors and employees when the rule is implemented.
- As it becomes available, additional information will be shared through emails, Inside UA and informational sessions.
Fair Labor Standards Act FAQ’s
A list of federal FAQs regarding the rule can also be found on the DOL website.