On Tuesday, April 23, the Biden administration announced the Final Rule increasing the salary threshold required for many employees to remain salaried (and, thus, exempt from/ineligible for overtime).

Starting July 1, the rule increases the salary threshold at which executive, administrative and professional (“EAP”) employees are exempt from overtime pay from the current salary threshold of $35,568 to $43,888. The rule makes an additional adjustment to $58,656, effective January 1, 2025 (and automatic adjustments are built into the rule every three years thereafter).

Drake HR is working with members of the President’s Council and impacted managers to assess exempt positions that will fall short of the new July 1 and/or January 1 salary thresholds.

Drake HR is also working to create a webpage that will provide more information about the new Final Rule and how FLSA exemptions work. It will also address some of the ways Drake will assess impacted staff.

We do expect legal challenges to the Final Rule. For those of you who recall the 2016 Final Rule, it was subject to a court injunction right before it went into effect. We’ll be keeping a close eye on any legal developments and will share those, should they occur.

Please watch for more OnCampus updates and the roll-out of a FLSA webpage (hopefully by the end of this month).

— Maureen De Armond & Debra Wiley, Human Resources