Budget & Finance

Districts Scramble to Comply With New Overtime Rule

By Evie Blad — May 21, 2024 2 min read
Illustration of woman turning back hands on clock.
  • Save to favorites
  • Print

Implementing a new federal overtime rule will present logistical challenges for school districts, which must adjust their policies and operations within two months to comply with the mandate, education organizations said.

The rule, announced by the U.S. Department of Labor on April 23, raises the minimum salary threshold required for non-teaching workers to be exempt from overtime requirements, which means many districts will have to pay overtime to employees like nurses, athletic trainers, and librarians who previously earned too much to qualify.

Citing concerns about a tight timeline, two education groups signed a May 9 letter to the Labor Department requesting that the agency delay the July 1 implementation date until at least September.

The current timeline gives employers two months “to analyze the rule, determine what changes to their operations and payrolls will be necessary, explain to the impacted workers how and why their pay, titles, or workplace responsibilities will change, and then implement those changes,” said the letter signed by a coalition of employment and industry groups, including the Association of School Business Officials and AASA, the School Superintendents Association.

Since 2019, eligible employees who earn less than $35,308 a year have qualified for overtime pay if they work more than 40 hours a week. The new federal rule will increase that salary maximum level to $43,888, and again to $58,656 on Jan. 1, 2025. Salary thresholds will update every three years starting in July 2027, relying on new federal data on average wages, the Labor Department said in April.

Teachers remain exempt from the overtime rule, despite a push from unions to include them in the mandate.

To prepare for the rule’s implementation, districts must decide if they will restructure employees’ responsibilities to reduce the likelihood of overtime hours, hire additional staff to reduce workloads, or provide slight pay increases to employees near the exemption threshold, said Noelle Ellerson Ng, the associate executive director of advocacy and governance for AASA. Districts that opt to pay overtime to their newly qualified employees may have to adopt new methods to track their work hours and ensure compliance with the rule, she said.

“The biggest concern is how quick the timeline is,” Ng said, adding that districts are “trying to balance what’s most fiscally responsible with what’s least disruptive.”

Most districts passed budgets for the next fiscal year in March or April, before the rule was finalized, but they have known about the potential changes since September, when the Labor Department released a draft proposal.

The Labor Department is unlikely to grant the delay request because the policy was announced after it went through the federal review process, receiving 33,000 public comments. The coalition that signed the May letter sent a similar request for a delay before the rule was finalized, which the agency considered before publishing the regulation.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Assessment Webinar
Reflections on Evidence-Based Grading Practices: What We Learned for Next Year
Get real insights on evidence-based grading from K-12 leaders.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Promoting Integrity and AI Readiness in High Schools
Learn how to update school academic integrity guidelines and prepare students for the age of AI.
Content provided by Turnitin
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
What Kids Are Reading in 2025: Closing Skill Gaps this Year
Join us to explore insights from new research on K–12 student reading—including the major impact of just 15 minutes of daily reading time.
Content provided by Renaissance

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Budget & Finance From Our Research Center Some Districts Struggle to Align Their Spending With Instructional Needs
Some districts have more success than others using classroom-level insights to inform spending decisions, survey data show.
4 min read
Idea, thinking out of the box, creativity and design background, banner, poster. Geometrical style vector design with light bulb, brain, pencil.
iStock/Getty Images
Budget & Finance Districts Are Already Bracing for Federal Funding Cuts Under Trump
Schools could struggle to support vulnerable students if Republican proposals for K-12 cuts come to pass.
8 min read
The U.S. Capitol is seen from Pennsylvania Avenue in Washington, on Election Day, Tuesday, Nov. 5, 2024.
The U.S. Capitol is seen from Pennsylvania Avenue in Washington, on Election Day, Tuesday, Nov. 5, 2024.
Jon Elswick/AP
Budget & Finance 3 Budgeting Lessons School Administrators Learned From ESSER
District leaders recommend maintaining a list of dream priorities and looking closely at return on investment.
7 min read
Share your financial/budget idea with others; business project. Sharing of experience.
iStock/Getty
Budget & Finance The G.O.A.T. School Fundraising Idea for Principals. (Really.)
For this season of giving, principals are ditching tried-and-tested methods.
3 min read
Photo of funny goat with his tongue out.
iStock/Getty