August 23, 2024

Dept. of Labor increases overtime threshold

More SWCC employees are entitled to overtime pay in accordance with a new ruling by the U.S. Department of Labor, which came into effect July 1.

Since 2019, the total salary of executive/administrative/professional (EAP) employees nonexempt from overtime pay has been $35,568 annually, or $684 per week. Thanks to the April 26 ruling, the EAP salary threshold has gone up to $43,888 annually, or $844 per week.

Duties to be considered for the EAP exemption can be found on the Department of Labor’s website, with different duties considered or each category.

SWCC Director of HR Lana Bartmess explained that with the change in salary qualifications, 22 SWCC employees have been moved from the exempt to nonexempt status. These employees were not originally eligible for overtime compensation for all hours worked over 40 hours per week.

“The final rule did not modify the duties, tasks, provision or the salary test basis, but did increase the salary level amounts of which employees must be paid in order to be exempt from overtime,” Bartmess said. “There is a potential of an even greater financial impact, as the minimum salary threshold is set to be increased again on Jan. 1. That level is moving to $58,656 and is also set to increase every three years after on a routine basis.”

Bartmess said the financial impact on SWCC wouldn’t be minimal, as the 2019 salary threshold compared to the upcoming Jan. 1 threshold was a 65% increase.

However, the future of this ruling is unsure, as some state courts are working to block the changes.

“There is a lot of controversy,” Bartmess said. “I know in Texas, they already have a ruling blocking their employees from this new ruling, and I expect several other states to put up challenges as well as we go through a political election year. I think that has a lot to do with that as well.”

In other SWCC news…

The board approved a new purpose statement for the college. The statement now reads:

“Southwestern Community College provides students and community members with opportunities to gain skills and knowledge for successful employment, higher education achievement, and lifelong learning.”

Susannah Miller has resigned her position as an agriculture instructor, moving to the position of assistant vice president of instruction. Joseph Nenneman has also been hired as a carpentry and building trades instructor for the high school career academy.

Erin Henze

Originally from Wisconsin, Erin is a recent graduate from UW-Stevens Point. Outside of writing, she loves to read and travel.