Department of Labor Releases Final Rule Lifting the Salary Threshold for Overtime Pay Requirements
By Hugh T. Ferguson, NASFAA Senior Staff Reporter
The Department of Labor (DOL) last week released a final rule raising the salary threshold that would qualify for exemption from overtime pay (known as the “white collar exemption”) under the Fair Labor Standards Act (FLSA), which would result in a greater number of employees eligible for overtime pay.
The rule, which takes effect on July 1, 2024, will raise the minimum salary threshold to $43,888, then on January 1, 2025 the threshold will be raised to $58,656. Any eligible employee earning under these thresholds would be eligible to collect overtime pay for any work completed over 40 hours. The floor will then be revised every three-years thereafter.
This final rule is expected to be met with legal challenges. During the Obama administration a similar effort was ultimately stalled in federal court.
For those looking to learn more about the potential impact of the rule, College and University Professional Association for Human Resources (CUPA-HR) will be convening a free webinar on May 8, where participants can learn how the rule will affect the higher education sector.
Back in February, CUPA-HR drafted a letter cosigned by a number of higher education associations to DOL expressing concern about the impacts of increasing the overtime salary threshold on institutions, their employees, and the students they serve.
More information on the final rule can be found on the DOL’s webpage.
Publication Date: 4/30/2024
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