Fair Labor and Standards Act (FLSA)

On April 23, 2024, the U.S. Department of Labor’s (DOL) final overtime pay rule was released. This new rule requires employers to pay overtime to unclassified employees making less than $43,888 annually, effective July 1, 2024. Additionally, the Department of Labor’s rule implements an automatic threshold increase to $58,656 effective January 1, 2025, and established automatic updates to the threshold that will occur every three years. 

Certain employee groups are exempt from the Department of Labor salary test and are not required to meet the new salary threshold; this includes teachers/instructors, coaches whose main responsibility is not recruitment, medical/veterinary interns, and residents. These are the only classifications exempt from the new overtime rules.

LSUA will reclassify employees who have a salary below $43,888 annually effective June 29th, 2024. The June 29th date aligns with the start of the bi-weekly pay period and ensures LSUA complies with the new federal regulation.

This change affects departments and employees in the following ways: 

  1. Affected employees will move to a biweekly pay cycle and have their base salary converted to an hourly rate. Affected employees will be required to enter their time in Workday each pay period. Timely manager approval in Workday is required for the employee to get paid.
  2. Affected employees will be paid 1.5 times their regular hourly rate for time worked more than 40 hours in an assigned and contiguous workweek (Saturday 12:00 am to Friday 11:59 pm).
  3. Each department is responsible for financing their overtime or compensatory time from their regular budget. Departments should account for their annual overtime needs within the annual budget construction process. If funds are not allocated for overtime, departments should build employee schedules that allow no more than 40 hours per week.
  4. Additional implications can be found in the information links below.

Managing Overtime: Departmental Choices

  • Employees shall not enter hours beyond 40 in the workweek without express, written permission from their supervisory team.
  • Departments can also manage overtime costs by offering compensatory time provided certain criteria are met. Offering compensatory time in lieu of overtime pay must be agreed upon in writing before the work is performed.
  • Departments should establish written guidance on how overtime is approved and assigned to ensure the management of time is applied consistently and fairly within the organization. 
  • Departments can manage overtime costs by modifying workloads and adjusting schedules or providing for flexible work schedules based on current needs.

Resources:

FLSA Frequently Asked Questions - FAQ (PDF)
Hourly Worker Travel Guide (PDF)

Pay Schedules (Click on Wage Schedule)
Entering Time in Workday (PDF)

LSUA Overtime Policy (PDF)

Presentation from Campus FLSA Meeting (PDF)