In April of 2024, the US Department of Labor announced that it is significantly increasing the minimum salary threshold that salaried employees must be paid to qualify as exempt from the FLSA. Beginning January 1, 2025, for an exempt employee to remain exempt, the employee’s salary must be $1,128 per week, which is equivalent to $58,656 annually. With the next salary increase for the FLSA approaching, now is the time to review employee salaries, duties, and possible FLSA exemptions.
As part of their increase in the salary levels, the Department of Labor released a Frequently Asked Questions document regarding the exemptions. Question 33 specifically looks at how the salary level applies to employees at schools and states “exempt employees do not need to be paid for any workweek in which they perform no work.”
Practically speaking, that means that an exempt employee who works only a certain number of months out of the year needs to receive the salary level only during those months worked. Furthermore, “employers may prorate over a full year the salary of an otherwise exempt employee who has a duty period of less than one year.” This situation can apply, for example, if an employee works on a 10-month basis but has payments spread over 12 months. As long as the standard salary level is met for the weeks the employee works, those payments prorated over 12 months can fall below the standard salary level.
A few other reminders:
The teacher exemption from the salary requirements remains. Therefore, teachers do not need to be paid the salary threshold minimums.
To qualify for an exemption, the employee must meet all requirements for either the executive, administrative, professional, or computer employee exemptions. We created a flowchart that outlines those specific requirements to consider. If you are interested in purchasing the flowchart, please send an email to ksb@ksbschoollaw.com.
Some academic administrative employees whose primary duties relate to academic instruction or training can meet the salary basis by either (1) being paid the standard salary level; or (2) “at least equal to the entrance salary for teachers in the educational establishment by which the employee is employed.”
If you have specific questions about an employee's exemption status, call us at (402) 804-8000 or email ksb@ksbschoollaw.com.