Fair Labor Standards Act

Oklahoma State University is subject to and manages its compensation program in compliance with the Fair Labor Standards Act (FLSA).

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

For a full overview of the federal law, refer to the Department of Labor (DOL) Wage and Hour Division FLSA assistance page.

University Classification

University employees carry either an "exempt" or "non-exempt" status when it comes to compensation, classification, overtime, and other minimum wage and salary requirements under the FLSA. The FLSA provides a set of standards to determine which jobs are covered by the act (“non-exempt”) and which jobs are not covered (“exempt”):

- Non-exempt positions are considered hourly positions and must receive overtime pay or compensatory time for hours worked over 40 in a workweek.
- Exempt positions are considered salaried positions and do not normally receive additional compensation for overtime work.

To qualify as exempt, an employee must satisfy the following three FLSA tests:

- Have a salary above the minimum salary threshold;
- Be paid on a "salary basis"; and,
- Perform duties that qualify for an exemption.

FLSA Update to Exempt Status

On April 23, 2024, the DOL finalized a new FLSA exempt salary threshold, with the finalized ruling published on the DOL website. University Human Resources has been tracking the change to the exempt salary threshold since a proposed ruling was announced, and has developed a plan for implementation. Legal challenges to the new rule have occured, and Human Resources is still actively monitoring the current court challenges. However, the new rule is in effect July 1, 2024.

Salary Threshold Changes:

The rule takes effect in two stages and does the following:

- Establishes $43,888 annually ($844 per week) as the federal salary threshold required to be exempt from overtime pay requirements, effective July 1, 2024.
- Increases the federal salary threshold to $58,656, effective January 1, 2025.
- Requires salary threshold increases every three years, based on the latest earnings data.
- The salary change does not impact the current overtime exemptions in place for positions such as teachers, coaches, and physicians.

The New Regulations Require:

- Some staff whose annual base salary is below the new threshold will transition to hourly (non-exempt bi-weekly status).

Who is Affected:

Exempt staff members currently earning less than the updated threshold may be affected. Once HR and college/division leadership have reviewed all data and determined who will be affected, individuals will receive notice from their college/division administrative office with more details.

Human Resources is partnering with key administrative officers for the respective colleges and divisions across campus as we prepare to implement this change at the university. In advance of a more detailed plan, we can share a few items.

1. OSU will adopt a slightly higher salary threshold rate for exemption of $865.38 per week, or $45,000 annually.
2. OSU is committed to a smooth transition for employees affected, and individuals will be contacted once final determinations have been made.
3. If the rule is blocked by the courts, which remains a possibility, Human Resources will reassess and update campus.

Federal Information/Resources

OSU Resources

Supervisor Tools

Travel Pay

For more information or questions regarding FLSA, please contact your HR Consultant.