The Fair Labor Standards Act (FLSA) is a federal law administered by the U.S. Department of Labor (DOL). It provides a range of protections to employees, including provisions that establish minimum wage, overtime pay, and recordkeeping requirements. Specifically, the FLSA overtime provisions require employees to receive pay at a rate no less than time-and-a-half for all time worked over 40 hours in a defined work week.
However, the FLSA recognizes that some positions warrant exemption from the overtime provisions. These positions are designated as “exempt” and do not receive overtime pay. For a position to be classified as exempt, employers must demonstrate that employees perform specific job duties and receive pay above a set threshold.
On April 23, 2024, the DOL released a final rule adjusting the salary threshold for overtime exemptions under the FLSA. On July 1, 2024, the salary threshold will increase as follows:
| Current Threshold | 7/1/2024 Threshold | |
|---|---|---|
| Weekly | $685 | $844 |
| Annual | $35,568 | $43,888 |
Effective July 1, 2024, UNM must comply with the approved DOL final rule. UNM HR has reviewed these changes and anticipates minimal impact to university employees. UNM’s approach is as follows:
Next Steps
If you have questions regarding FLSA changes, you are encouraged to contact your Human Resources Consultant.
No, the salary threshold applies to the amount of pay the employee receives for doing the work, not the full-time equivalent pay if the employee was to work full-time.
In order to remain exempt, the employee’s pay must meet the FLSA salary threshold of $844/week ($43,888 annual). For a part-time employee, the employee’s pay can be increased through and appointment percent (FTE) increase or a salary increase. To increase a salary, the department must follow established compensation guidelines.
The exemption status does not diminish the professional nature and significance of any job at the University. It is simply a legal designation for pay purposes. The University considers many non-exempt positions to be professional in nature and emphasizes appropriate job classifications, pay, and professional development for all employees.
No. The actual job duties an employee performs will not change as a direct result of the updated regulations. Supervisors are expected to communicate with employees regarding work performed and may discuss ways in which an employee's workload can be balanced more efficiently to comply with the change in the employee’s exemption status.
Yes. Non-exempt employees must be paid for all time worked, in accordance with the law. Overtime should be authorized in advance by the supervisor. Employees who do not obtain supervisory approval for overtime may be subject to disciplinary action. Refer to UAP 3305: Overtime for information.
This activity is considered worked time and must be recorded and paid. Depending on the number of hours the employee has worked that week, this may also trigger overtime pay for any hours over 40 in the workweek, regardless of whether the supervisor approved the overtime or not. Employees must be paid for time worked and supervisors need to be clear about expectations for working overtime, reminding employees that checking email at home is considered working. All overtime must have prior authorization from your supervisor.
Yes. Refer to UAP 3300: Paid Time for what is considered paid and non-paid time for non-exempt employees while traveling.
No. Non-exempt employees must be compensated for all hours worked. Even if an employee voluntarily offers to work off-the-clock or to waive overtime pay, the University is obligated to pay the employee for all time worked and to pay at a rate of time-and-a-half for time worked in excess of 40 in a workweek.
A supervisor may adjust an employee’s schedule within the same work week (Monday-Friday) before overtime has been worked However, the supervisor may not adjust an employee’s schedule to avoid paying overtime.
Changes to a bargaining unit employee schedule must comply with the union contract.
The University is obligated by law to pay non-exempt employees for all overtime incurred, regardless of funding source. If a position is funded through an outside entity that does not allow for overtime pay, the University must identify alternative funding sources to pay the employee appropriately.
Compensatory time off (“comp time”) may be offered instead of overtime pay to non-exempt employees if there is a written agreement in advance between the supervisor and the employee. Refer to UAP 3310: Compensatory Time for information on this process. Note that supervisors cannot require an employee to accept comp time instead of overtime.
Employees who work eight (8) hours or more in the workday should have a meal break of either one (1) hour or a (1/2) hour unpaid meal break. For more information on meal breaks and rest periods, refer to UAP 3300 Paid Time. Skipping lunch should be the exception, not the norm, and must be approved in advance by your supervisor.
Although the FLSA does not require employers to provide breaks or rest periods for employees, UNM supervisors may, at their discretion, allow employees to take a 15-minute rest period during each half day worked. Breaks may not be taken at the beginning or the end of the work period or appended to the meal break.
The new regulations do not affect positions that are already non-exempt in any way. All supervisors and employees should use this opportunity to familiarize themselves with current UNM overtime regulations and procedures.
