The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and recordkeeping requirements for employees in the private sector and in federal, state, and local governments.
MSU Threshold
On April 23, 2024, the U.S. Department of Labor issued a final rule outlining a two-phase increase to the minimum salary threshold under the Fair Labor Standards Act (FLSA) overtime regulations. The first phase took effect July 1, 2024, raising the threshold from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). A second increase was scheduled for January 1, 2025, which would have further raised the threshold to $1,128 per week ($58,656 annually). The rule also included provisions for automatic updates to the threshold every three years.
However, on November 15, 2024, a federal judge vacated the rule in its entirety. As a result, the January 2025 increase did not take effect, and employees who were expected to transition from salaried to hourly status remained exempt. The ruling also nullified the automatic update provision and reversed the July 2024 threshold increase. Despite the court’s decision, Mississippi State University chose to maintain the $43,888 annual salary threshold for exempt status.
Effective June 1, 2025, employees at MSU earning more than $35,568 annually ($684 per week) will be considered exempt under FLSA, provided their job duties meet the criteria under the Executive, Professional, Administrative, Computer Professional, or Highly Compensated Employee classifications.
If you have any questions, please contact your Human Resources Business Partner.