Labor Department Proposes Substantial Expansion of Overtime Threshold

The Department of Labor (DOL) has proposed an increase to the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold for overtime pay. As NACUBO analyzes the proposal and prepares comments to the DOL, we welcome your feedback.

Under the FLSA, generally all hourly workers are entitled to overtime pay after 40 hours a week, at no less than time-and-half their regular rate of pay. However, salaried workers who perform executive, administrative, or professional roles must be paid a salary of at least the threshold amount and meet certain duties tests. If they are paid less or do not meet the tests, they must be paid overtime.  

The DOL has proposed raising the standard salary threshold from its current level of $35,568 annually to $55,068—a nearly 55 percent increase. The DOL also proposed automatic increases to occur every three years to the threshold. The proposal does not include any changes to the duties requirements of the overtime rules.

According to the DOL, the proposed rule brings the overtime threshold in line with the 35th percentile of earnings by full-time salaried workers. That is above the 20th percentile in the current rule implemented in 2019, but less than the 40th percentile that was proposed during the Obama administration.

Take Action

NACUBO plans to comment to the DOL on this proposal, and we need your input. There is an important opportunity to make your institution’s voice heard.

We understand this issue has far-reaching implications for how your institution operates and employs faculty and staff. We strongly urge your institution to—

• Collaborate with campus leaders to review and understand how the proposed rule would affect your campus
• Inform NACUBO and the higher education community's advocacy efforts by sharing with us how the new threshold would impact your institution at advocacy@nacubo.org
• Advocate for your institution by submitting comments directly to the DOL

Public comments on the proposed rule must be submitted to the DOL no later than 60 days after it is published in the Federal Register, which is expected to be early next week.

Upcoming Webinar

We encourage you to register for CUPA-HR’s webinar on the DOL proposal on Thursday, September 21, from 12-1 pm ET. The webinar is offered in cooperation with NACUBO, the American Council on Education, and other associations, and will take a closer look at the proposed rule and its implications for higher education. Register here.