Fair Labor Standards Act (FLSA) Guidelines
Changes effective January 1, 2025
HISTORY
On April 23, 2024, the Department of Labor (DOL) issued the final rule to change the overtime pay regulations under the FLSA. The changes impact the salary threshold, which will increase from $35,568 ($684 per week) to $58,656 ($1,128 per week) effective January 1, 2025.
The salary threshold is part of a two-part test to determine FLSA status and whether a position is eligible for overtime (non-exempt) or not eligible for overtime (exempt).
- Duties Test: The rule does not change the duties test, and both the salary and duties test must be met to qualify for exemption from overtime criteria.
- Salary Test: The final rule increased the minimum salary threshold to $43,888 ($844 per week) on July 1, 2024, and now to $58,656 ($1,128 per week) on January 1, 2025.
This means that to remain exempt from overtime, an employee must meet the duties test and the salary test on January 1. The salary test is not pro-rated for part-time employment and must be met in full to remain exempt.
Please Note: There are currently legal challenges underway so the final rule could change.
JANUARY 1, 2025
For positions in the following job classifications that are subject to the salary test and that fall below the new threshold of $58,656 ($1,128 per week), schools/departments will determine if the position should be moved to non-exempt or if the salary should be adjusted above the new threshold.
- PRA, Senior PRA, Research Associate, Senior Research Associate (1310, 1309, 1306, 1305)
- University Staff
- Classified Staff
NEXT STEPS for the FLSA SALARY THRESHOLD and ENTRY LEVEL POSITION CHANGE IMPLEMENTATION
Action items for Central HR:
- Continue to monitor legal challenges that might impact January 1 implementation.
- Partner with colleges and departments and provide guidance and factors to consider when deciding whether to move employees to non-exempt or adjust the salary to the new threshold to keep the employee(s) exempt.
- Provide resources for employees and campus managers unfamiliar with non-exempt timekeeping and workload management. FAQs are currently available at Compensation | Human Resources | University of Colorado Boulder
- After January 1 final decisions – Addendum letters will be issued to employees informing them of final changes to exemption status or salary.