What is the Fair Labor Standards Act? The Fair Labor Standards (FLSA) is a federal law that establishes the minimum wage, sets guidelines for determining eligibility for overtime pay, and sets standards for recordkeeping for all employees. The rule defines and delimits who is a bona fide executive, administrative and professional employee exempt from the overtime requirements. To qualify for an exemption, an employee must generally satisfy three tests: Salary basis test – the employee must be paid on a salary, not hourly, basis Salary level test – the employee must receive a minimum salary rate established by the FLSA Duties test – the employee’s primary duty must involve work associated with the executive, administrative, or professional exemption EXCEPTIONS: Employees whose primary duty is teaching, tutoring, instructing, or lecturing qualify for an exemption and do not need to meet the salary level and salary basis test. At UAH, this includes faculty and coaches. Certain employees “whose primary duty is performing administrative functions directly related to academic instruction or training” may also qualify for exemption from overtime. Still, these employees must satisfy the salary level and salary basis tests. What is the current status of FLSA? On April 23, 2024, the U.S. Department of Labor (DOL) Wage and Hour Division issued a rule amending the Fair Labor Standards Act (FLSA) overtime regulations. This rule changed the minimum salary required for an employee to be exempt from overtime provisions to $43,888 effective July 1, 2024. The DOL estimated that the change resulted in about 4 million U.S. workers becoming eligible for overtime. Accordingly, about 100 UAH employees were impacted and several UAH titles became overtime eligible. However, on November 15, 2024, a federal judge overruled the July 1, 2024 changes to the overtime rule. As a result, the current requirements for exempt status are 1) duties which qualify as exempt status under the FLSA and 2) a minimum salary of $35,568 per year. Although future changes to the FLSA legislation are not expected in the short-term, UAH will continue to monitor the situation to ensure our on-going legal compliance. How do recent FLSA changes impact UAH?? UAH remains committed to fostering a robust and vibrant workforce, which includes thoughtful recruitment and retention strategies. UAH will not roll-back the 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, as long as they remain in their current positions. Should they apply for alternative employment at the University, these employees will receive compensation and benefits commensurate with their new titles. For additional information on overtime practices at UAH, refer to the Overtime and Compensatory Time Policy. Resources FAQs Informational UAH FLSA Presentation Additional Information For more information regarding FLSA, please contact the Office of Human Resources at hr@uah.edu. Please note, the information on this page does not in any way constitute a change the terms and conditions of at-will employment, nor the ability of the University to make decisions on a case-by-case basis as necessary for business operations, including matters related to employment, compensation, and layoffs.