Classification & Compensation

Fair Labor Standards Act (FLSA) Compliance

U.S. DEPARTMENT OF LABOR RULE CHANGE

The U.S. Department of Labor's (USDOL) recent rule to increase the minimum salary for exempt employees under the Fair Labor Standards Act (FLSA) has been blocked by a federal court. In light of these developments, the minimum salary threshold for white-collar exemptions under the FLSA will remain at $684 per week ($35,568 per year).

Employees earning above this threshold are exempt from overtime pay, meaning they are not entitled to additional compensation for hours worked beyond the standard 40-hour workweek.

We will continue to monitor any further changes and provide updates as needed.
 
For additional information on FLSA and , please choose the link provided, or visit the .  

FLSA Frequently Asked Questions - Updated March 2025

FLSA Basics

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and recordkeeping requirements for employees in the private sector and in federal, state, and local governments, including higher education institutions. Employees are classified as either "exempt" or "non-exempt" based on specific FLSA regulations. The United States Department of Labor (DOL) administers the FLSA regulations.

Who is entitled to overtime pay under the FLSA?

Non-exempt employees covered by the FLSA must receive overtime pay at a rate of at least one and one-half times their regular rate of pay for any hours worked over 40 in a workweek. For more information, see the U.S. DOL Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA).


Exempt vs. Non-Exempt Status


What is the difference between Non-Exempt and Exempt status?

Non-Exempt Employees:

    • Employees must track hours accurately and report any scheduling conflicts.
      Each job must have separate time events and should not overlap.
    • Overtime applies when an employee works more than 40 hours per week across all ±«Óătv jobs.
    • If an employee has multiple jobs, overtime pay is based on a weighted average of all pay rates.
    • Employees must enter hours accurately in Oracle to align with payroll processing requirements.

Exempt Employees:

    • Not subject to overtime pay requirements under the FLSA.
    • Exempt status is determined based on specific job duties and salary thresholds (titles alone do not determine exemption).
    • For additional Information see  the U.S. DOL Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA).

What is the current salary threshold for exempt employees under the FLSA?

As of 2019, the minimum salary threshold for exempt employees is $684 per week ($35,568 annually).

Why is the July 1, 2024, salary threshold increase not in effect?

The DOL issued a final rule on April 23, 2024, to increase the salary threshold to $844 per week ($43,888 annually) as of July 1, 2024, with an additional increase scheduled for January 1, 2025. However, legal challenges have halted the implementation of this rule. The salary threshold remains at the 2019 level ($684 per week) until further notice.

Determining Exempt Status

What are the criteria for Exempt status under FLSA regulations?

To qualify for exempt status, a position must meet all three tests:

      1. Salary Level Test – The employee must be paid at least $684 per week ($35,568 annually).
      2. Salary Basis Test – The employee must receive a guaranteed salary that is not subject to deductions based on variations in work performed.
      3. Duties Test – The employee’s job duties must meet the specific exemption criteria under FLSA for executive, administrative, or professional roles. For more information on the duties tests, refer to the fact sheets available on the DOL’s website.

Does the FLSA status change affect the duties test?

No. The 2024 FLSA updates only proposed changes to the salary threshold. The duties tests remain unchanged.

How does ±«Óătv ensure compliance with FLSA regulations?

±«Óătv follows the 2019 FLSA salary threshold and adheres to all federal regulations regarding exemption status. HR continuously monitors legal developments and will provide updates as necessary.

How do I confirm if I am impacted by the salary threshold change?

If you are an exempt employee earning below the proposed threshold of $844 per week ($43,888 annually), your status remains unchanged under the 2019 exemption criteria.

Impact of Exemption Status Changes

Are faculty members or coaches impacted?

    • Teaching faculty are exempt under the FLSA regardless of salary, as long as their primary duty is teaching.
    • Athletic coaches are also typically exempt under the "teaching exemption" and will not be affected by the salary threshold changes.

What happens if my position is reclassified from Exempt to Non-Exempt?

    • Time Reporting: Non-exempt employees must accurately record all hours worked.
    • Overtime Pay: Any overtime hours must be reported and pre-approved by a supervisor.
    • Compensatory Time: Eligible employees may accrue comp time at 1.5 hours per overtime hour worked.

If my salary is below the FLSA threshold, can I remain exempt?

No. Exemption status is determined by federal law (FLSA), not by employee preference. If an employee does not meet all FLSA exemption requirements, they must be classified as non-exempt.

 Part-Time Employees & Overtime

How are part-time employees paid overtime?

Part-time employees receive overtime pay if they work more than 40 hours in a workweek.

Does the FLSA threshold apply to part-time employees based on a 40-hour equivalent salary?

No. The actual weekly earnings are used to determine exemption status, not a full-time equivalent (FTE) calculation.

Payroll, Benefits, and Leave Considerations

Will employee benefits change if my position is reclassified from Exempt to Non-Exempt?

Employees will move to the appropriate leave accrual schedule, but annual accrual rates remain unchanged.

FLSA status change is NOT a Qualifying Life Event under IRS rules, so benefit elections will not change. 
 
Will becoming non-exempt impact my retirement contributions?

No. Retirement contributions remain the same and are calculated based on a percentage of base pay.

Will my Flexible Spending Account (FSA) deductions change?

No. FSA deductions remain unchanged.

Will becoming non-exempt affect my Optional Retirement Program (ORP) eligibility?

No. ORP eligibility is based on the employee’s pay plan (Administration, Staff, Faculty), not exempt status.

Leave, Holidays, and Compensatory Time

Do holidays count as time worked?

No. Holidays do not count toward the 40-hour overtime threshold. Employees who work on a holiday receive a delayed holiday per ±«Óătv policy.

Does sick or annual leave count as time worked?

No. Leave hours do not count toward overtime calculations.

Will my leave accrual rates be affected if I become non-exempt?

No. Administration employees converted to non-exempt will continue to earn leave at the same biweekly accrual rates. 

For questions or clarification, employees are encouraged to contact:
±«Óătv Human Resources – Compensation & Classification Team at classcomp@usf.edu

2024 FLSA Frequently Asked Questions - updated November 21, 2024

 1. What was the recent federal court decision impacting the Fair Labor Standards Act (“FLSA”) overtime rule?

A federal court recently struck down the Department of Labor’s (DOL) proposed changes to the FLSA overtime rule. The ruling invalidates DOL’s attempt to increase the minimum salary threshold required for employees to be classified as exempt from overtime pay.

2. What were the proposed changes to the salary threshold?

DOL’s new Rule aimed to increase the salary threshold for white-collar exemptions in two initial phases, followed by automatic increases every three years beginning July 1, 2027. The first phase took effect on July 1, 2024, raising the threshold to $43,888 annually ($844 per week). The second phase was set to increase it further to $58,656 annually ($1,128 per week) on January 1, 2025.

As a result of the court's ruling, the Rule and its increases to the salary threshold for exempt employees have been vacated, and the threshold reverts to the previous level of $35,568 annually ($684 per week).

3. Does this rule impact all employers?

Yes, this rule impacts employers nationwide who were preparing to comply with the new salary thresholds. This decision means that employers will continue to use the previous threshold of $35,568 annually ($684 per week) to determine overtime eligibility for white-collar employees.

4. Could there be further changes or appeals to the FLSA overtime rules?

Yes, there is potential for further appeals or revisions to DOL’s overtime rules. Central Human Resources will provide updates on any new developments, as the DOL may propose new changes or seek higher courts' guidance on this issue.

5. If I received an increase due to the July 1, 2024, FLSA adjustment, will that increase be taken away?

No. The University will not reduce your pay as a result of the recent federal court ruling.

6. If I transitioned from exempt to non-exempt due to the July 1, 2024, adjustment, will I remain non-exempt?

The University will continue to assess potential impacts from the court’s ruling. Colleges and departments should partner with CHR on how to proceed.

7. How can I stay informed about future updates on this matter?

CHR will be posting additional information and updates, including responses to frequently asked questions, on our website. Please visit ±«Óătv's FLSA page (bookmark this page). 

8. Who can I contact if I have more questions?

If you have any questions or need further clarification, please reach out to our Compensation Team or your HR Business Partner for assistance.

For previous announcements, see "previous announcements" at the bottom of this page. 

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 is $684, or $35,568 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

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 ±«Óătv 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 ±«Óătv must complete timesheets to precisely document work hours.
For additional information, see the

Previous FLSA Updates

April 23, 2024, U.S. DEPARTMENT OF LABOR RULE CHANGE (2 of 2)

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 ±«Óătv'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 please choose the link provided, or visit the

April 23, 2024, U.S. DEPARTMENT OF LABOR RULE CHANGE (1 of 2)

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 July 1, 2024, will increase ±«Óătv's minimum salary level from $684 on a weekly basis ($35,568 annually for 26.0 pay periods) to $844 weekly and $43,888 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.

On September 24, 2019, the U.S. Department of Labor (DOL) published final changes to update the minimum salary levels needed for positions to be exempt from overtime pay. The DOL rule increases ±«Óătv's minimum salary level to $1,368 on a biweekly basis ($684 per week; $35,568 annually for 26.0 pay periods). Employees currently exempt from the existing DOL rule will become overtime eligible if their salary is below the new threshold as of January 1, 2020.

Two options are available for positions with salaries below the new minimum threshold:

  • Maintain the current salary and become eligible for overtime pay; or,
  • Maintain the exemption status by increasing the salary to at least the new threshold.