Fair Labor Standards Act (FLSA)

Latest U.S Department of Labor News on Restoring and Extending Overtime Protections

The Biden-Harris administration announced on April 23, 2024, the final ruling to increase the compensation threshold for overtime eligibility. The new final rule will likely face legal challenges as did the earlier 2016 final rule that sought to raise the exemption threshold, which could delay implementation. Effective July 1, 2024, the salary threshold is proposed to increase to the equivalent of an annual salary of $43,888 and increase again to $58,656 on Jan. 1, 2025. It is important to note that while the DOL has finalized this rule, it has not been explicitly approved by Congress. Instead, the new ruling has been established through the regulatory process, which includes a review by the White House Office of Information and Regulatory Affairs (OIRA) and a notice-and-comment period allowing public input before finalization​. Rice University is closely monitoring the ruling regulations and timelines and will be working with strategic partners to roll out any changes based on the finalized ruling.

The Fair Labor Standards Act (FLSA) is a federal regulation that:

  • Establishes the criteria for a job to be exempt or nonexempt
  • Establishes the federal minimum wage required for all nonexempt jobs
  • Guarantees overtime for nonexempt jobs for hours worked over 40 in one workweek (at Rice the workweek begins Sunday at 12:00 am and ends the following Saturday at 11:59 pm)
  • Governs the employment of minors

New Minimum Salary Requirements for Exempt Positions (Exempt from Overtime).

On July 1, 2024, the FLSA’s new minimum salary for exempt positions went into effect. To comply with this change in regulations, Rice’s minimum salary for exemption has increased to $844 per week or $43,888 per year. This minimum salary amount applies to all exempt jobs regardless of the FTE – the minimum is the same for someone with an FTE of 0.25 and 1.0. Staff whose jobs meet the duties test for exempt status but who are paid less than the amounts outlined below will be non- exempt and eligible for overtime.

Additional information: