Overtime Rule Update
UA Human Resources officials are proactively preparing for stage two of the U.S. Department of Labor’s planned update to the Fair Labor Standards Act rule for determining the salary threshold for overtime pay exemptions. Stage one of FLSA changes was completed this summer, and stage two will take effect in January, pending any court injunctions.
The U.S. Department of Labor first announced the updated overtime rule in the Fair Labor Standards Act in April 2024. The updated Department of Labor rule raises the salary threshold for employees who are exempt from required overtime pay.
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 Change for Stage Two:
- 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 designation).
- Other affected employees may receive a pay adjustment to maintain exempt designation.
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 personalized letter 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.
- Supervisors and employees will be scheduled to attend an informational session if the rule is implemented.
- As it becomes available, additional information will be shared.
Fair Labor Standards Act FAQ’s
A list of federal FAQs regarding the rule can also be found on the DOL website.