FLSA Compensation Threshold Increases Overturned
Following a federal judge's Nov. 15, 2024, ruling to vacate the Department of Labor's Fair Labor Standards Act (FLSA) plan to increase the minimum annual salary threshold, the University of Arizona is converting its compensation thresholds to stay aligned with federal FLSA guidelines, and will also comply with state thresholds, as applicable. The compensation threshold is one factor in determining whether a position can be exempt from overtime eligibility.
As a result of these changes, a small number of university employees whose salaries are between $35,568 and $43,888 annually (or between $684 and $844 weekly) and whose duties meet one of the FLSA duties tests may be reclassified from hourly to salaried employees effective March 31. Impacted employees and their direct supervisors will be contacted individually with guidance. No action is needed from employees to inquire about their status or to ensure the change takes place.
For specific questions, please contact your HR generalist team. To learn more about the FLSA and these changes, please review the following: