Fair Labor Standards Act (FLSA)

On April 23rd, 2024, the Department of Labor issued a final rule that implemented a two-phase approach to increasing the minimum salary threshold under the FLSA overtime regulations. The first increase took effect on July 1, 2024, increasing the minimum salary threshold from the previous current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year). The second increase was set to take effect on January 1, 2025, and it would have increased the minimum salary threshold again to $1,128 per week ($58,656 per year). The final rule also adopted automatic updates to the minimum salary threshold that would occur every three years.

On Friday, November 15th, a federal judge vacated the entire rule. This ruling means that the new salary threshold for January 2025 will not take place, and those employees who were scheduled to convert from salaried to hourly will no longer be required to do so. This ruling also eliminated the scheduled salary updates every three years, which would have required us to constantly change the minimum amount employees would have been required to be paid to remain in a salary-exempt status. This ruling also reversed the July 2024 changes, but LSU will not be making any changes to those employees who were changed to hourly at that time. Any position that has already been converted from salaried to hourly will remain hourly going forward. We will continue to use the $43,888 figure as the required level of pay in order for a position to remain salaried and exempt.

We understand that this change may raise some questions. Should you have questions or need clarification about FLSA or its impacts on LSU employees, please contact HRM at hr@lsu.edu.