Prep begins to support employees likely to become overtime-eligible

By Brian Meyer, strategic relations and communications
October 03, 2024

Pay close attention to your email inboxes starting next week. A series of communications is coming to help prepare employees -- approximately 500 -- who are likely to transition to overtime-pay eligibility for the first time on Jan. 1, 2025.

Changes to federally mandated overtime pay regulations in the Fair Labor Standards Act (FLSA) were announced earlier this year. They involve a two-step process. In phase 1, the minimum salary threshold for overtime eligibility rose on July 1 to $43,888. In phase 2, coming on Jan. 1, the threshold will rise to $58,656.

What the new threshold means

If your salary is above the threshold, you're exempt from the federal mandate for overtime pay. If your salary falls below the threshold, you are nonexempt -- you become eligible for overtime pay (at least 1.5 times your regular rate) for the hours you work beyond 40 hours per week. Some exceptions exist, but those will not apply to the majority of employees impacted by the new threshhold.

Employees who become overtime-eligible for the first time in January will be required to:

  • Track their time by regularly entering their work hours and continuing to request time off in Workday.
  • Prepare for a transition from a monthly pay schedule to a semimonthly pay schedule.

These requirements will necessitate timely trainings of employees and managers, and the support and guidance of managers -- all before Jan. 1.

Salary increases could have a role

A challenge, which will be resolved in the weeks ahead, is pinpointing exactly which and how many employees will be impacted. Why? Because occurring in tandem with this federal mandate is the university's performance-based salary increase process for faculty, professional and scientific (P&S) staff, contract staff and postdoctoral researchers. When finalized, performance-based increases will move some employees currently below the proposed salary threshold to a point above the threshold.

That's why, starting next week, paying special attention to messages in your inbox is important. Here are the scheduled communications from university human resources (UHR) planned for specific groups of employees:

  • Employees who remain exempt, despite being below the Jan. 1 salary threshold. FLSA allows exceptions to federally mandated overtime for employees carrying out certain responsibilities. Examples include academic advisors and student services specialists. For those in this group, watch for a message the week of Oct. 7.
  • Managers of employees likely to be impacted. Even with performance-based salary increases, some employees are likely to fall below the new salary threshold. Managers will need to discuss the changes with these newly nonexempt employees and help them make the transition. For those in this group, watch for a message the week of Oct. 7.
  • Employees likely to be impacted. UHR will notify employees likely to have salaries falling below the Jan. 1 threshold. "Likely" will remain a key term until final exemption status is determined. For those in this group, watch for a message the week of Oct. 14.

Workshops for managers

Managers play a critically important role in ensuring compliance with the new FLSA regulations -- and making sure their valued employees are supported through the transition. From Oct. 7 through Nov. 22, UHR will make available in-person, hands-on workshops for managers with newly nonexempt employees. Managers will need to complete online prerequisites in advance of the workshops. For impacted employees, online training for time tracking is offered in Workday Learn.

Here's one last caveat: There remains the possibility that legal challenges to the new salary threshold could result in a court-ordered pause in its implementation. That would trigger another communication from UHR.

UHR will provide more information and resources to impacted employees and managers as they are available. Check out the FAQ with answers to questions about the new federal overtime requirements.

 

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