Fair Labor Standards Act (FLSA)

FLSA Update – 11/15/2024

Dear Staff and Faculty,

On November 15, 2024, a federal judge in the Eastern District of Texas invalidated the final rule on overtime under the Fair Labor Standards Act (FLSA). This decision overturns the planned increase to the salary threshold for overtime eligibility, which was set to take effect on January 1, 2025.

Allegheny College had previously announced plans to implement the January 2025 salary thresholds, as was mandated. However, due to this ruling, the College will not be proceeding with the changes previously planned for January 1, 2025. As detailed in our October 30, 2024 communication, the second phase of the FLSA updates would have raised the minimum salary threshold for overtime exemption to $58,656 annually ($1,128 per week).

Allegheny College made every effort to address the April 2024 DOL FLSA changes in compliance with the law, ensuring our approach was equitable, fair, and consistent. In the coming days, the Office of Human Resources will contact employees affected by the July 1, 2024 conversion and those slated for conversion in January 2025. During these meetings we will provide more information.

We remain committed to upholding federal labor standards and supporting our employees through transparent communication and available resources. The college will continue to monitor legal developments and provide updates as needed.

If you have any questions about the recent court ruling and its impact on DOL FLSA rules, please reach out to the Office of Human Resources.

Thank you for your understanding and support as we navigate these changes together.

Sincerely,
Nicole R. Ross
Director of Human Resources

FLSA

The Fair Labor Standards Act (FLSA) through the Department of Labor (DOL) establishes minimum wage and overtime pay regulations, defines exempt (salary) and non-exempt (hourly) status based on criteria, and sets salary thresholds for exempt positions. The last change made to the salary thresholds was in 2016.

In August 2023, the Department of Labor (DOL) proposed an amendment to the current Fair Labor Standards Act (FLSA) rules that would change pay thresholds for exempt positions. On April 23, 2024, the DOL formally announced its final rule on this issue. We have been monitoring this and, now that the rule is made, we are reviewing and finalizing next steps for the College to be in compliance with the new federal regulations. We’ll also wait for any possible changes to the ruling, and over the next few weeks you can expect transparent and clear communication from us on this matter as we remain committed to our principles of equity, compliance, and financial responsibility.

In summary, regardless of job title, employees must meet both the duties test and the salary test to qualify for an exemption. Otherwise, they are non-exempt and eligible for overtime (OT).

Human Resources