On November 15, 2024, a federal judge in the Eastern District Court of Texas vacated all components of the U.S. Department of Labor’s Fair Labor Standards Act (FLSA) new overtime rule. This includes changes UAB implemented earlier this year to comply with the first phase of the overtime rule, which went into effect in July 2024.
As a result, UAB is reversing some of the actions taken to comply with the now-vacated rule. Effective January 12, 2025, employees previously reclassified from exempt to nonexempt will have their exempt status restored. Pay grade changes and pay increases resulting from the first phase of the rule will not be reversed.
UAB Human Resources previously announced any adjustments to exemption statuses, pay grades, or pay rates scheduled to go into effect on January 1, 2025, to comply with the second phase of the now-vacated rule will not be implemented.
Employees with concerns or questions may visit the FAQs on the FLSA decision in the HR Connect Portal, or contact their supervisor or designated Human Resources Consultant.