Fair Labor Standards Act
Overview
In the summer of 2023, the US Department of Labor (DOL) proposed changes to the Fair Labor Standards Act of 1938 (FLSA), which sets the rules for how employers pay employees. The FLSA governs federal minimum wage levels and which jobs are eligible for overtime, and it defines exemptions from overtime for jobs where the duties meet specific criteria (called Duties Tests), and where the wages exceed certain thresholds.
The proposed regulations raise the new minimum salary level for exempt positions from the current $684 per week ($35,568 per year) to a level between $1059 and $1,158 per week (between $55,068 and $60,209). The new regulations also automatically update the salary threshold every three years based on wage growth. We do not yet know when these changes will go into effect or what the final salary threshold will be, but the proposal is in the final stage of the regulatory process. Human Resources is communicating now with managers to help them understand the proposed changes, and the college has budgeted appropriately.
For more information, please visit our FLSA Frequently Asked Questions page.