Update regarding Jan. 1, 2025, FLSA minimum salary changes

From: Human Resources

On April 23, 2024, the U.S. Department of Labor (DOL) released a final rule that increased the FLSA salary threshold for most exempt employees. Exempt employees are in positions that are not eligible for overtime.

The first change to this final rule went into effect July 1, 2024, and increased the minimum salary threshold for exempt positions to $844 per week or $43,888 per year.

The second change is currently scheduled to go into effect Jan. 1, 2025, and will increase the minimum salary threshold for exempt positions to $1,128 per week or $58,656 per year. The rule also implements automatic updates to the minimum salary threshold that will occur every three years beginning in 2027.

If the legislation goes into effect Jan. 1, 2025, employees with annual salaries below the threshold may become eligible for overtime and would be required to track their hours worked. 

The Division of Human Resources, in consultation with college and department HR representatives and senior leaders, is conducting a comprehensive review of all positions impacted across the university to comply with this federal change and maintain equity and consistency within the university. Should changes occur, employees impacted by the change will be notified of specific changes to their position by early January 2025.

It is important to note that there are currently several ongoing legal challenges to the Jan. 1, 2025, ruling that may delay or modify the updates in the legislation. Virginia Tech will continue to monitor these cases and will only move forward with any planned changes to comply if the FLSA updates move ahead as planned. 

HR will keep the university community informed of any impacts or changes to employees. Visit the FLSA pages on the HR site for more information on these changes. If you have questions about this change, contact your college or department HR representative.