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Fair Labor Standards Act

Updated Regulation

On April 23, 2024, the U.S. Department of Labor (DOL) released final regulations that change minimum wage and overtime pay requirements under the Fair Labor Standards Act (FLSA). These new regulations will become effective July 1, 2024.

Under the FLSA:

  • Employers cannot exempt an employee from eligibility for overtime pay unless the employee’s salary is above the FLSA salary threshold;
  • Beginning July 1, 2024, the FLSA salary threshold will be $844/week, or $43,888 for full-year employees;
  • Employees earning less than the new threshold will be entitled to overtime compensation when working more than 40 hours in a given week;
  • The Department of Labor makes no provision for part-time, salaried employees — a salaried employee who earns less than $844 (gross wages) per week is not exempt from FLSA compensation rules.

UMD Compliance Plan

UMD will comply with the new regulations as follows:

  1. Any Full‐Time Research Faculty (including postdoctoral researchers) who currently fall below the new FLSA salary threshold will receive a salary increase to the new threshold, which annualizes to $43,888.
  2. Part‐Time Research Faculty will continue to hold Faculty rank and be subject to applicable USM faculty policies. They will be compensated at straight pay for any hours worked over their FTE equivalent, and overtime pay at a rate of time and one half for hours worked over 40 per week.  For example, part-time Research Faculty on a 50% FTE appointment will be compensated at their regular hourly rate for any hours worked over 20 in a given week and will receive overtime pay at time and one half for hours worked over 40 per week.
  3. Part‐Time Exempt Staff will either:
    1. be converted from Exempt to Nonexempt status, be eligible for overtime pay at time and a half for hours worked over 40 hours per week, and be subject to applicable policies for Nonexempt employees, or
    2. receive a salary increase to meet the new FLSA regulations.UHR will consult with Unit heads to determine which option best meets unit needs and resources.
  4. New position descriptions will be created for any positions converted from Exempt to Nonexempt status.
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