Fair Labor Standards Act (FLSA) salary threshold
The FLSA threshold salary threshold for exemption from overtime pay or compensatory time will be raised from $684 per week ($35,568 per year; $1,368 per pay period) to $844 per week ($43,888 per year; $1,688 per pay period). My current salary is will be below the threshold and my department wants to switch me from salary to hourly employee. "As a currently exempt employee, you have been ineligible to receive overtime pay or compensatory time for hours worked over 40 in a workweek. However, due to the recent change in the FLSA salary threshold and the fact that your pay is below this new threshold, your position will now be classified as nonexempt." What are the pros and cons here?
Resolution/Notes
The overarching intent of the Department of Labor’s increase in the FLSA exempt salary threshold is to increase the number of employees eligible for overtime pay. The Labor Department has estimated 1 million employees will be newly eligible for overtime pay beginning July 1, 2024. This can have various implications, but the specific pros and cons can vary based on individual circumstances. If you have any concerns or need further clarification, please contact your HR Representative within your department/college so we can discuss and address any questions you may have.