FAQs
2025 Changes to the Fair Labor Standards Act (FLSA)
Q: What is the Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act (FLSA) is a federal law administered by the U.S. Department of Labor that determines if a position is eligible for overtime pay for hours worked over 40 in a workweek.
Under the FLSA:
- Exempt positions are salaried and not eligible for overtime, regardless of hours worked.
- Non-exempt positions are eligible for overtime when more than 40 hours are worked in a week.
- The exemption status depends on both the position’s duties and salary. To qualify as exempt, a position must meet both the salary threshold (currently $844/week or $43,888/year) and the duties test as defined by law.
- Certain positions are always exempt from the law, regardless of salary amount. For example, all teaching positions are exempt.
Q: What are the new changes to the FLSA?
While the duties test remains unchanged, the salary threshold has been updated in the law. Effective January 1, 2025, the minimum salary requirement for exempt positions will increase to $1,128/week or $58,656/year.
Q: When will the FLSA changes take effect?
Currently, the law requires employers to implement the new FLSA salary requirements on Jan 1, 2025.
Q: What happens to non-teaching exempt positions paid below $1,128/week ($58,656/year)?
These positions must either:
- Receive a salary increase to meet the new threshold to remain exempt; or
- Be reclassified as non-exempt, meaning they will track hours and receive overtime pay for any hours worked beyond 40 in a week.
Q: Why would overtime pay only apply to hours worked beyond 40 in a week?
WVU's standard workweek is 37.5 hours. Employees are paid their regular wage (straight-time pay) for any hours worked between 37.5 and 40. Therefore, overtime pay applies only to hours worked beyond 40 in a week. Since most positions are not budgeted for hours between 37.5 and 40, units should consider these additional costs when planning schedules and staffing.
WVU Research Corp employee’s standard workweek is 40 hours per week. If an employee is non-exempt and works over 40 hours per week, they would receive overtime.
Positions that meet the duties test and are paid above the new salary threshold will remain exempt. These roles are not impacted by the FLSA updates.
Q: How will WVU determine if a position receives a salary increase or moves to non-exempt/hourly?
Supervisors will assess various factors, such as the cost of potential overtime versus the cost of a salary increase. They will also consider the department’s budget and operational needs when making decisions.
Q: Is moving from a salaried to an hourly position considered a demotion?
No, the change is required by law and does not reflect the value of the employee’s role. It simply alters how pay is calculated.
Q: Will moving to an hourly position affect my career advancement opportunities?
No, changing from exempt to non-exempt status does not impact career advancement opportunities.
Q: Will changing to hourly status affect an employee’s job classification?
No, the job classification remains the same. For example, a non-classified employee moving to hourly will still retain their non-classified status as defined in BOG Rule 3.1.5.10.
Q: When will employees know if their position is affected by the new FLSA law?
Changes must be implemented by January 1, 2025; therefore, employees will be notified by their supervisors in December 2024 pending any further changes to the law.
Q: What happens if the law changes or is amended?
There are lawsuits challenging the January 1, 2025, rule. WVU will monitor these cases, and if any rulings change the implementation date or salary threshold, WVU will respond accordingly.
Q: Are graduate students, teaching assistants and student workers affected?
No. Under FLSA, students who engage in research or teach under a faculty member’s supervision while obtaining a degree are considered to be in an educational relationship (not an employment relationship). Therefore, these students are not entitled to overtime and are excluded. Students who serve as resident assistants, live in the residence halls and advise students in exchange for room and board also are excluded.
Q: How do FLSA rules differ for higher education compared to private companies?
The FLSA has specific provisions for higher education:
- Teachers are excluded if teaching is their primary duty. This includes adjunct instructors, professors and others.
- Coaches are excluded if their primary role is teaching student-athletes how to perform their sport.
- Graduate research assistants, graduate teaching assistants and resident assistants are also excluded.
Q: How are postdoctoral positions impacted?
Postdoctoral researchers who do not teach are subject to the new salary rules. However, those whose primary duty is teaching remain excluded.
Q: Who is excluded from these changes?
Faculty and instructional academic staff whose primary duty is teaching are excluded, regardless of salary. Other exclusions include professionals such as teachers, lawyers and doctors.
Q: Where can I find more information?
Additional information, including details on time worked under the FLSA (e.g., travel time, training and working outside of normally scheduled hours), is available on the Compensation webpage.