New Fair Labor Standards Act (FLSA) Exempt Pay Rule

On September 24, 2019, 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 to $684 per week ($35,568 per year). More information about the rule is available at https://www.dol.gov/whd/overtime2019/. University of Utah must comply with the final rule, effective January 1, 2020.

Generally, there are three requirements for an employee to qualify as exempt from FLSA:

• The employee must earn a salary of at least $684 per week ($35,568 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; and
• 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)