The U.S. Department of Labor has increased the salary threshold for the Fair Labor Standards Act (FLSA) to $684 per week or $35,568 per year for a full-year worker. Employees whose salaries fall below the new threshold must be paid hourly, report hours worked, and be compensated for overtime unless they qualify for a threshold exemption. Only employees with salaries above the threshold may be designated as “exempt.” The new rules go into effect Jan. 1, 2020.

UW–Madison employees who are affected by this change and are transitioning from “exempt” to “non-exempt” status have been contacted directly and invited to informational forums. Those who were unable to attend the forums or would like a refresher can view the forums online at hr.wisc.edu/flsa. UW–Madison is also making short-term, interest-free loans available to employees who are transitioning from a monthly pay date to bi-weekly pay dates as a result of this change.

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