On April 23, 2024, the Department of Labor announced significant changes to the Fair Labor Standards Act (FLSA) which impacts overtime eligibility. Employees are classified as either exempt (overtime ineligible) or nonexempt (overtime eligible). The final rule increases the salary threshold required for exempt status in two phases over the next fiscal year. The first phase is effective July 1, 2024, and raises the minimum salary threshold from $35,568 to $43,888 for exempt employees. The rule will impact some CF employees who are currently classified as exempt.
Impact
The Office of Human Resources, in collaboration with Administration and Finance, has reviewed the potential impact of the Department of Labor’s final rule to ensure that CF complies with the law while having the least negative impact on employees.
- Nonexempt employees are not impacted — this includes most Career and Other Professional Services (OPS) employees. Additionally, the changes will not impact teaching faculty.
- Approximately 25 currently exempt positions are impacted by the July 1 threshold change. HR will notify affected employees directly.
Effective July 1, 2024
Employees who are currently exempt (overtime ineligible) and meet one of the following criteria will become nonexempt (overtime eligible) effective July 1, 2024:
- Employees who are currently exempt but make less than the new salary threshold will become nonexempt.
- A small number of exempt employees making more than the new FLSA salary threshold will also become nonexempt if their job titles as a whole move to nonexempt.
Employees who move from exempt to nonexempt will require more attention to timekeeping and adherence to daily work schedules, but nothing about their work will change. They will not experience changes to their duties, pay, benefits or leave accrual rates. Nonexempt employees must not work more than their scheduled hours. College policy defines a workweek as 37.5 hours for all nonexempt employees. Overtime must be approved in advance.
Next Steps
Human Resources will directly notify department supervisors and employees who are impacted by this change by July 1, 2024. We will continue to monitor the new regulations and provide updates as needed.
For more information about overtime eligibility and college procedure for overtime requests, see Board Policy 6.17 – Work Week and Administrative Procedure: Requesting Overtime