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K-State Today

May 6, 2024

New FLSA salary threshold announced

Submitted by HR Compensation and Organizational Effectiveness

The U.S. Department of Labor announced its final overtime rule, which raises the salary threshold for overtime exemptions under the Fair Labor Standards Act, or FLSA. The final rule increases the salary threshold required for exempt status in two phases.

  • Effective July 1, 2024, the standard salary threshold will increase from $684 per week — $1,368 biweekly/$35,568 per year — to $844 per week — $1,688 biweekly/$43,888 per year.
  • Effective Jan. 1, 2025, the standard level will increase again to $1,128 per week — $2,256 biweekly/$58,656 per year.
  • The rule also includes a new mechanism that automatically increases the salary threshold for the executive, administrative and professional exemptions every three years beginning July 1, 2027.

Human Resources will work with impacted departments to review currently exempt positions that will fall below the new threshold of $43,888 per year to determine appropriate adjustments by July 1, which is the start of fiscal year 2025.

Fewer than 25 currently exempt positions are impacted by the July 1 threshold change. Human Resources will reach out directly to department budget/fiscal officers the week of May 13 to share a list of impacted positions and discuss potential adjustments.

Effective immediately, vacant positions whose anticipated hiring range falls below the new $43,888 threshold will be designated as nonexempt. HR's talent team will review current recruitments and work with compensation and the department to determine if any changes need to be made.

The two previous increases to the salary thresholds — 2016 and 2019 — have been challenged in court, and this new rule may also be challenged. HR will continue to monitor any changes with the final rule and work with university leaders to determine the university's response.

Resources and information related to the threshold change and FLSA can be reviewed in the Department of Labor's final rule announcement and on the HR FLSA and Overtime webpage. Questions about FLSA can be directed to HR compensation and organizational effectiveness at hrcomp@k-state.edu or 785-532-2984.

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