Key Issues

FLSA Overtime News and Resources

Alert: On August 30, 2023, the Department of Labor (DOL) announced a new proposed update to the salary threshold for the “white collar” exemptions to the Fair Labor Standards Act’s (FLSA) overtime pay requirements. See CUPA-HR’s Washington Insider Alert for more information.

Details

DOL has released a comprehensive set of changes, summarized below:

  • Proposed Standard Salary Level: Increase the minimum salary threshold from $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year) — a nearly 55% increase.
  • Proposed Salary Level for Highly Compensated Employees: Increase the salary level for the Highly Compensated Exemption (HCE) to $143,988 from its current level of $107,432 (a 34% increase).
  • Duties Test: The proposal does not make any changes to the duties requirements.
  • Automatic Updates: Propose automatically updating the threshold every three years by tying the threshold to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region.

What's Next

On November 7, 2023, CUPA-HR submitted comments in response to DOL's September 8 proposed rule. With the comment period now closed, DOL must review all comments submitted in response to the proposed rule prior to issuing a final rule to implement the changes to the minimum salary threshold requirements.

On March 1, 2024, the Department of Labor sent the highly anticipated final rule to update FLSA overtime regulations to the Office of Information and Regulatory Affairs for review. This is a required step in the regulatory process and acts as one of the last steps prior to releasing the text of the regulation to the public. While OIRA has 90 days to conduct its review, in most cases, the review takes 30 to 60 days. This means the final rule could be released as early as the end of March or in April. CUPA-HR will keep members apprised of any updates on when a final rule will be published and when the rule will go into effect.

Webinars

Recent News

Advocacy Letters, Comments, and Briefs

Key Resources

DOL Fact Sheets
  • DOL Fact Sheets (17A-17U) - Read now
  • Fact Sheet #82: Fluctuating Workweek Method of Computing Overtime Under the Fair Labor Standards Act (FLSA) / “Bonus Rule” Final Rule (July 2020) – Read Now
  • Fact Sheet #17S: Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA) (September 2019) – Read Now
  • DOL Q&A Read now
DOL Opinion Letters
  • FLSA2019-4: Application of the teacher exemption to Nutritional Outreach Instructors employed by a public university (April 2019) – Read Now
  • FLSA2018-6: Coaches and the teacher exemption under section 13(a)(1) (January 2018) – Read Now
  • FLSA2005-42: Academic advisors and intervention specialists under section 13(a)(1) (October 2005) – Read Now
DOL Field Assistance Bulletins
  • FAB 2020-5: Employers' obligation to exercise reasonable diligence in tracking teleworking employees' hours of work (August 2020) – Read Now

2019 Final Rule: History and Insights

Current Obligations and Rulemaking History

Changes to overtime pay requirements have been implemented through regulations under both the Obama and Trump administrations. In May 2016, the Obama administration’s DOL issued a final rule increasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. However, court challenges prevented the rule from taking effect, and it was permanently enjoined in September 2017. After the Trump administration started the rulemaking process anew, the DOL issued a new final rule in September 2019 raising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. This final rule went into effect January 1, 2020, and remains in effect today.

Key Resources

For HR practitioners navigating the new proposal, resources associated with the 2019 final rule can offer valuable insights. Understanding past changes can equip professionals with a broader perspective and aid in anticipating challenges and opportunities presented by the latest DOL proposal.

Department of Labor Insights

  • DOL Fact Sheets (17A-17U) - Read now
  • Higher Ed-Specific Fact Sheet #17S (September 2019) - Read now
  • DOL Q&A - Read now

CUPA-HR Insights

  • The Impact of the 2019 FLSA Overtime Rule on Higher Education - Read the brief
  • White Paper: FLSA Exemption Guidance & Compliance Best Practices – Read the White Paper