League of Nebraska Municipalities
June 2024
New federal salary threshold approved by U.S. Dept. of Labor
Tara A. Stingley, Sydney M. Huss, and Madeline C. Hasley, Cline Williams Wright Johnson & Oldfather, LLP*
On April 23, 2024, the U.S. Department of Labor (DOL) announced an increase to the Fair Labor Standards Act’s (FLSA) salary-level threshold for the “white-collar” exemptions to overtime requirements. The DOL’s final rule expands overtime pay protections to over four million workers by changing the FLSA’s exemptions to overtime eligibility. Public employers are not exempted from the DOL’s final rule. Accordingly, public employers should begin evaluating appropriate measures to comply with the final rule, should it take effect.
I. The current standard
Subject to certain exemptions, the FLSA requires covered employers to pay at least minimum wage to employees and overtime to those who work more than 40 hours per week.i Currently, to be exempt from overtime under the FLSA’s executive, administrative, and professional exemptions, an employee must be paid a salary of at least $684 per week and meet certain duties tests.ii If the employee is paid less than $684 per week, is not paid on a salary basis, or does not meet the applicable duties test, the employee must be paid one and
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one-half times their regular hourly rate for hours worked in excess of 40 hours in a workweek, unless an exception applies, such as a valid compensatory time off plan.iii
II. The DOL’s final rule
Under the DOL’s final rule, the salary threshold for the FLSA’s executive, administrative, and professional exemptions will increase in two phases:
• On July 1, 2024 , the salary threshold will increase from $684 per week ($35,568 per year) to $844 per week ($43,888 per year).iv
• On Jan. 1, 2025 , the salary threshold will increase again, to $1,128 per week ($58,656 per year).v
In addition, the DOL’s final rule increases the total annual compensation requirement for highly compensated employees:
• On July 1, 2024, the annual compensation threshold will increase from $107,432 per year to $132,964 per year.vi
• On Jan. 1, 2025 , the annual compensation requirement will increase again to $151,164 per year.vii
The DOL has set forth a schedule for automatic increases to the salary threshold every three years,
after the initial update on July 1, 2024, to allow for predictable updates. viii The DOL has not released the updated rates for 2027, but it has indicated that it will use methodologies in place at the time of the dates.ix
III. What remains unchanged
As expected, the DOL’s final rule did not amend the duties test under the FLSA.
Regardless of the changes to the salary threshold, an employee still must meet both the duties and pay requirements of an exemption in order to be properly classified as exempt under the FLSA.x
IV. Effective date of the final rule
The DOL announced that the first phase of the final rule will take effect on July 1, 2024.xi The
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Lash Chaffin
Section Director
Sash
New federal salary threshold approved by U.S. Dept. of Labor
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The delayed applicability date will allow employers six additional months beyond the proposed 60-day effective date in which to evaluate employees who will be affected by the new standard salary level methodology and the new [highly compensated employee] compensation level methodology and make any adjustments.xiv
V. The road ahead
As expected, the DOL’s final rule has already faced legal challenges in court. As of early June 2024, two lawsuits have been filed in the Eastern District of Texas challenging the final rule. Most recently, on June 3, 2024, the Texas Attorney General filed suit seeking a temporary
restraining order requesting the court enjoin implementation of the final rule. These legal challenges look similar to those raised in 2016, when a comparable rule was announced under the Obama Administration to increase the FLSA’s salary threshold.
Given the final rule’s looming effective date and the uncertainty of litigation, employers are put in a difficult position in preparing to comply with the new rule. Regardless of pending litigation, employers must consider what is necessary to comply with the new rule, should it take effect. Employers first should evaluate the nature of their current workforce, particularly their exempt employees. Salaries for employees currently classified as exempt may need to be increased to align with the final rule. Where salary increases are not feasible or practicable, employees may need to be reclassified as nonexempt. Reclassification decisions will need to be evaluated carefully to consider
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how best to communicate changes to impacted employees. These types of decision can be complicated and will depend on a variety of factors. Employers should work closely with counsel on changes that need to occur and to monitor legal developments related to the DOL’s final rule.
Editor’s Note: This article is not intended to provide legal advice to its readers. Rather, this article is intended to alert readers to new and developing issues. Readers are urged to consult their own legal counsel or the author of this article if they wish to obtain a specific legal opinion regarding their particular circumstances. The authors of this article, Tara A. Stingley, Sydney M. Huss, and Madeline C. Hasley, can be contacted at Cline Williams Wright Johnson & Oldfather, L.L.P., tstingley@clinewilliams. com, shuss@clinewilliams.com, mhasley@clinewilliams.com, or www.clinewilliams.com.
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New federal salary threshold approved by U.S. Dept. of Labor
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Endnotes
* Special thanks to Carmella A. Monico for her assistance in the research and preparation of this article.
i 29 U.S.C. § 207(a)(1).
ii 29 C.F.R. §§ 541.100(a)(1), .200(a)(1), .300(a)(1).
iii 29 U.S.C. § 207(a)(1). See also 29 U.S.C. § 207(o) (stating that “[e]mployees of a public agency . . . may receive . . . compensatory time off at a rate of not less than one and one-half
hours for each hour of employment for which overtime compensation is required by this section.” (emphasis added)); Tara A. Stingley & Sydney M. Huss, Time or money: Providing compensatory time off in lieu of overtime pay, NEBRASKA MUNICIPAL REVIEW, Sept. 2023, at 16, available at https://www.lonm.org/ news/publication-links/nebraska-municipalreview.html.
iv Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,
89 F.R. 32842 (proposed Sept. 2023) (to be codified at 29 C.F.R. pt. 541).
v Id.
vi Id.
vii Id.
viii Id.
ix Id.
x Id.
xi Id.
xii Id.
xiii Id.
xiv Id.
Backflow Workshops scheduled in August
Four Backflow Workshops are scheduled for Aug. 13 in Beatrice, Aug. 14 in Wayne, Aug. 20 in Ogallala, and Aug. 21 in
Grand Island. These workshops are sponsored by the League of Nebraska Municipalities Utilities Section and the Nebraska Section
of AWWA.
A registration form is available on the League website at lonm.org under the Training tab.
Engineering a world where everyone thrives.
Utilities Section Newsletter
Lead and Copper Rule revisions – lead service line inventory
Jackson Sash, Utilities Field Rep./Training Coordinator
The Lead and Copper Rule (LCR) was first established in 1991 with the purpose of reducing the levels of lead and copper in drinking water. Since it was introduced the LCR has been revised several times, but most recently in 2021. The 2021 Lead and Copper Rule Revisions (LCRR) was followed by the proposal of the Lead and Copper Rule Improvements (LCRI) which will finalize Oct. 16, 2024. This Oct. 16, 2024, date is extremely important as it is the compliance date for the initial service line inventory development (includes making inventory publicly accessible) required by the 2021 LCRR. Then starting on Oct. 16, 2024, the following rules will go into effect:
• Failure to submit initial inventory to the State by Oct. 16, 2024, requires Tier 3 Public Notification (PN).
• Provide revised lead health effects language in public education materials to ensure consistent notification messaging with PN requirements (as referenced in 141.85(e)).
• Failure to certify to the State that the system notified persons served at service connections of a known or potential service line containing lead requires Tier 3 PN.
• Exceedance of the lead action level as specified in § 141.80(c) requires Tier 1 PN provided to persons served by the water system no later than 24 hours after the system learns of the exceedance.
• A copy of the Tier 1 PN for lead action level exceedance must be sent to the primacy agency and the By
EPA Administrator no later than 24 hours after the system learns of the exceedance.
• Provide revised lead health effects language as required in Tier 1 PN for lead action level exceedance and Tier 2 and 3 PN for violations. What does this mean for you and your system?
To remain in compliance with the LCRR, Public water systems (PWS) must develop a Lead Service Line Inventory. If an inventory is not received, the non-compliant system will be sent to the EPA for enforcement. Inventories are due by Oct. 16, 2024. To complete this inventory, classify the entirety of the of all service lines as lead, galvanized requiring replacement, non-lead, or lead status unknown. Also include if there are lead bearing material and/or connectors in the service line for inventory. A service line is defined as the pipe that connects the water main to the building’s inlet. Classification of the entire length of each service line is required, regardless of ownership or use.
Table 1 is an example of an inventory where ownership of the service line is split. Additional
items that are required include PWS Name, PWS ID, Date, locational identifier, presence of lead bearing material, and the method of determination. Please submit completed inventories in a digital format to: ndee.drinkingwater@ nebraska.gov.
A template for the inventory, public outreach flyers, and guidance documentscanbefoundon NDEE’s website
This article does not fully describe the regulations your system will be subject to. Additional information, deadlines, and specific Code of Federal Regulation Sections can be found on the ICRR Implementation Fact Sheet. If you have any questions, please contact your Field Representative, Regional Compliance Officer, or ndee.drinkingwater@nebraska.gov.
Table 1 - Example Inventory
By Jackson Sash, Utilities Field Rep./Training Coordinator SAFETY/HEALTH
CORNER
Heat hazards – staying safe in extreme temperatures
As summer temperatures soar, heat safety becomes a crucial concern for everyone. Prolonged exposure to high temperatures can lead to severe health issues, including heat exhaustion and heat stroke, both of which can be life-threatening if not addressed promptly. It is essential to understand the symptoms, preventive measures, and appropriate responses to ensure well-being during the hot months. Heat exhaustion is often the first
sign that the body is struggling to cope with the heat. Symptoms include heavy sweating, weakness, cold, pale, and clammy skin, a fast but weak pulse, nausea, and fainting.
If you or someone else experiences these symptoms, it is vital to move to a cooler place, loosen clothing, sip water slowly, and apply cool, wet fabric to the body. If symptoms worsen or last longer than an hour, seeking medical attention is necessary.
Heat stroke is a more severe condition that requires immediate
medical attention. Symptoms include a high body temperature (103°F or higher), hot, red, dry, or damp skin, a rapid and strong pulse, confusion, unconsciousness,
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Utilities Section Newsletter
Heat hazards – staying safe in extreme temperatures
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throbbing headache, nausea, and dizziness. If heat stroke is suspected, it is critical to call 911 immediately. While waiting for medical help, try to lower the person's body temperature with cool fabric or a cool bath, but avoid giving them anything to drink.
Preventing heat-related illnesses starts with staying hydrated. Drink plenty of fluids, even if you do not feel thirsty, and avoid beverages that can dehydrate you, such as alcohol and drinks containing caffeine such as coffee. Instead, drink water and
sports drinks containing salt as you lose salt while sweating. Wearing lightweight, light-colored, and loose-fitting clothing helps the body stay cool.
Whenever possible, stay in airconditioned buildings, especially during the hottest parts of the day. Limit outdoor activities to the cooler parts of the day, such as early morning or evening, and always wear sunscreen to protect against sunburn, which can impede the body's ability to cool itself.
Special care should be taken with vulnerable populations, such
as the elderly, children, and those with chronic illnesses, as they are more susceptible to heat-related illnesses. Check on family, friends, and neighbors who do not have air conditioning, and ensure they are staying cool and hydrated.
By understanding the risks associated with high temperatures and taking proactive measures, we can enjoy the summer months safely. Stay informed about local weather conditions, heed heat advisories, and prioritize health and safety to prevent heat-related emergencies.
Utilities Section Newsletter
Classifieds
The Village of Morrill is accepting applications for a full-time position to work in the Street & Alley, Water and Sewer Department. Applications and Job Descriptions are available on the website at www.villageofmorrill.com . The position will remain open until filled. Applications can be emailed to janine@villageofmorrill.com, dropped off at 118 S Center Avenue, Morrill, NE, or mailed to PO Box 305, Morrill, NE 69358. Line Technician. The City of
Auburn of Board of Public Works is accepting applications for an Electric Line Technician. Qualifications include successful completion of an accredited Journeyman Lineman program or consideration for a documented Journeyman Lineman through verifiable experience. Lineman apprentice applications will be accepted. Experience in construction, installation, maintenance and repair of electric transmission and distribution lines. Knowledgeable of and ability to
train in electrical distribution and transmission line construction, electrical apparatus such as singlephase transformers, three-phase transformer banks, voltage testing, rotation and regulators, and line switching clearance procedures and grounding. Compliance with all safety policies and procedures. Valid CDL or ability to obtain an acceptable driving record. Candidates will be subject to a criminal background check. Successfully pass DOT physicals/ drug tests as required. Ability to work outdoors in all types of weather conditions. Must reside within 30 miles of Service Center at 1604 O Street, Auburn, NE. The starting pay rate for this position is $32.24-$37.78 per hour depending on experience. Job description is available upon request. Applications are available at auburnbpw.com. Return to: Board of Public Works at 1600 O Street, Auburn, NE 68305. For questions about the position, contact Kevin Kuhlmann or Ray Luhring at (402) 274-4981. Position will remain open until filled.
Utilities Section Members can place an ad in the classifieds section of the Utilities Section Newsletter for free. Email your ad to brendah@ lonm.org.
Utilities Section Newsletter
2024 Training calendar
Visit our website for a complete list of workshops and conferences.
July
July 24-25 Power & Equipment Show
August
Aug. 13
Aug. 14
Chuck Pohlman Ag Complex, Norfolk
Backflow Workshop Valentino's, Beatrice
Backflow Workshop Fire Hall, Wayne
Aug. 15 .......... Water Operator Training Workshop ................. Seward
Aug. 20
Aug. 21
Backflow Workshop
Backflow Workshop
MidPlains Community College, Ogallala
Full Circle Venue (downtown), Grand Island
Aug. 22 .......... Water Operator Training Workshop ................. Grand Island
Aug. 27-29 Rubber Gloving School
September
Sept. 4-5
Sept. 10
Sept. 11..........
Sept. 12
Electric Underground School
Don Winkelman Training Field, Sidney
Don Winkelman Training Field, Sidney
Water Operator Training Workshop Sidney
Water Operator Training Workshop ................. North Platte
Water Operator Training Workshop Alma Country Club, Alma
Service Awards
Remember to recognize your employees’ anniversary milestones. The League provides certificates for 10, 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, and 65.
You can request them by emailing brendah@ lonm.org.
Retirements: Let us help recognize those municipal employees who are retiring after years of service.
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