New Fair Labor Standards Act (FLSA) Exempt Pay Rule

On April 23, 2024, the U.S. Department of Labor (DOL) issued a final rule that raised the threshold for minimum salary required under the Fair Labor Standards Act (FLSA) for overtime-exempt employees from $684 per week ($35,568 per year) to $844 per week ($43,888 per year). More information about the rule is available at https://www.dol.gov/agencies/whd/overtime/rulemaking. The University of Utah must comply with the final rule, effective July 1, 2024.

Generally, there are three requirements (all three must be met) for an employee to qualify as exempt from overtime under FLSA:

• The employee must earn a salary of at least $844 per week ($43,888 per year). Notably, however, the salary level does not apply to teachers and outside sales employees
• The employee must receive that pay on a “salary basis,” a term that is defined in the regulations and limits the types of deductions that can be made from an employee’s salary
• The employee’s “primary” (most important) duty must be a recognized exempt duty under the pertinent exemption(s)

For more information

• University Supervisors and Managers (click here)
• University Employees (click here)

NOTE: Impacted employees and their supervisors will receive an email with additional details from HR on June 24th, 2024.