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
School & District Management Webinar
Harnessing AI to Address Chronic Absenteeism in Schools
Learn how AI can help your district improve student attendance and boost academic outcomes.
Content provided by Panorama Education
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
Science Webinar
Spark Minds, Reignite Students & Teachers: STEM’s Role in Supporting Presence and Engagement
Is your district struggling with chronic absenteeism? Discover how STEM can reignite students' and teachers' passion for learning.
Content provided by Project Lead The Way
Recruitment & Retention Webinar EdRecruiter 2025 Survey Results: The Outlook for Recruitment and Retention
See exclusive findings from EdWeek’s nationwide survey of K-12 job seekers and district HR professionals on recruitment, retention, and job satisfaction. 

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 Districts Won’t Owe Extra Overtime Costs After Court Nixes Federal Rule
The incoming Trump administration is not likely to appeal the decision.
2 min read
Image of a clock, calendar, and a pencil.
Tatomm/iStock/Getty
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
Budget & Finance Quiz
Quiz Yourself: How Much Do You Know About STEM Funding?
Answer 6 questions about funding STEM education.
Content provided by PLTW
Budget & Finance No More School Lunch Fees for Low-Income Families, USDA Says
Districts have until 2027 to eliminate processing fees for students who get reduced-price meals.
3 min read
TIghtly cropped photograph showing a cafeteria worker helping elementary students select food in lunch line. Food shown include pizza, apples, and broccoli.
iStock/Getty
Budget & Finance Don't Forget About Money for Schools: How Public Education Fared at the Polls
Voters approved billions for school construction bonds in California—but rejected more than $4 billion in bond spending in Houston.
5 min read
Photo collage of U.S. currency and stock market trading graph.
Getty