On Nov. 15, a federal judge overruled the Biden administration's recent changes to the Fair Labor Standards Act (FLSA) overtime rule. These changes increased the minimum threshold salary for exempt (not eligible for overtime) employees to $43,888, effective July 1, 2024, and $58,656, effective January 1, 2025. To comply with the first phase of these changes, exempt employees compensated below $43,888 were reclassified to “professionals eligible for overtime.” The minimum salary for some UAH titles also increased to $43,888.
The judge’s ruling has halted implementation of the second phase of these changes, which was scheduled to occur on January 1, 2025. Although the Department of Labor has the option to appeal this ruling, we do not believe that it will be overturned based on the priorities of the incoming presidential administration. While future updates to the FLSA legislation are not expected in the short term, UAH will continue to monitor the situation and ensure our legal compliance, should any future changes occur.
In the meantime, you can expect the following:
- UAH will not roll back any increases in minimum salary that occurred as a result of the FLSA changes implemented on July 1, 2024. Employees who received pay increases and/or grandfathered benefits will retain them
- UAH will remain committed to fostering a robust and vibrant workforce, which includes thoughtful recruitment and retention strategies.
Should you have any questions, please contact the Office of Human Resources at hr@uah.edu.