Ohio University prepares for more changes to Federal Labor Standards Act salary threshold for overtime

On July 1, Ohio University implemented updates in response to revisions to the Federal Labor Standards Act (FLSA) salary threshold for overtime exemption. A second phase of FLSA changes is scheduled to take effect on Jan. 1, 2025, unless delays or modifications occur at the federal level. OHIO is preparing for these required adjustments while remaining flexible to accommodate any federal developments.

As it was with the July 1 changes, this second phase increase in salary threshold for overtime impacts executive, administrative and professional employees only. Faculty are excluded as part of a separate FLSA exemption category.

Beginning Jan. 1, 2025, the planned increase will move the minimum salary threshold to $58,656 annually ($1,128 per week). This means that any non-instructional staff member making less than this threshold must be eligible for overtime pay of at least 1.5 times their regular pay if and when they work more than 40 hours per week.

The Division of Human Resources has worked closely with department leaders to assess how this next phase of changes will impact our workforce. To ensure compliance with this federal change and maintain equity and consistency within our university pay structure, Ohio University will implement the following adjustments, contingent upon the FLSA rule proceeding as planned:

Starting Jan. 1, 2025:

• Exemption Status Changes (Contingent on Federal Changes): All 1.0 FTE administrative, non-instructional employees in pay grade 16 or below will move from salary to hourly compensation, regardless of where their current salary falls within the pay grade. These employees will be eligible for overtime pay when required to work more than 40 hours per week.
• Pay Grade 17 Adjustments (Contingent on Federal Changes): If the proposed federal changes take effect, the minimum full-time, 12-month salary for non-instructional staff in pay grade 17 will be raised to $58,656. Salaried employees in pay grade 17 will be reviewed to ensure their salary meets or exceeds this threshold and will remain exempt from overtime.

It is important to note that the implementation of the USDOL January 2025 salary threshold is subject to potential legal challenges. We are closely monitoring any potential updates from federal courts and government agencies, as there is the possibility that the proposed changes could be delayed or modified. The University will only move forward with implementation plans outlined above if the FLSA changes move ahead as planned.

We encourage all employees to visit the Ohio University Human Resources website for updates, training opportunities, and further details as we move forward.

For more information on the phase one implementation, visit OHIO’s HR website.