College News

UW-Madison employee raises halted after federal overtime rule blocked

UW-Madison leaders who were supposed to enact pay raises for some employees or move others to hourly positions following changes to the federal Fair Labor Standards Act halted the process Thursday after the changes were struck down in court. 

Image By: Katie Scheidt

More than 3,000 UW-Madison employees will not receive proposed salary increases or switch to hourly positions following a federal judge’s recent block of President Barack Obama’s overtime pay rule.

The changes to the Fair Labor Standards Act, struck down in court Nov. 22, would have modified regulations across the country that dictated overtime pay by requiring employers who paid salaried workers less than $47,500 per year to pay extra if those employees worked more than 40 hours in a week—a bump up from the previous benchmark of less than $23,660 per year.

In response to those changes, UW-Madison administration had planned to increase some employee salaries and move other employees from salaried to hourly positions Dec. 1.

But with the rule blocked, the university has paused those plans.

“UW-Madison does not have statutory authority to provide increases based on the new FLSA salary threshold if the modified regulations have not been implemented,” a university release said Thursday.

School employees will still be eligible for raises based on merit or other common factors, and the campus still plans to move forward with its proposal to raise salaries for postdoctoral workers.

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