Proposed changes to the Fair Labor Standards Act (FLSA) are likely to have a dramatic impact on campus housing operations, including concerns regarding salary compression and overall budgets. These are the findings of a straw poll conducted by The Association of College and University Housing Officers – International (ACUHO-I) earlier this month.
The poll asked several questions regarding proposed FLSA-exempt salary thresholds that are scheduled to take effect in July 2024 and January 2025. The rule, released by the U.S. Department of Labor, states that employees must earn at least $844 per week (the equivalent of $43,888 per year) on July 1 to be exempt from overtime pay under FLSA guidelines. Those figures rise to $1,128 per week ($58,656 annually) on January 1, 2025.
The straw poll results provide insight into current salaries for entry-level, live-in staff, including differences by region and select institutional characteristics, the impact of the July 2024 and January 2025 thresholds on institutional budgets, adaptive strategies, and the estimated budgetary impact of the new thresholds.
Highlighted findings include:
- Uncertainty is common: While more institutions report being decided about the July threshold than January, more than half are still unsure about how they will proceed.
- Salary compression concerns: The impact of salary compression is a major concern for nearly 3 in 4 institutions.
- Budget concerns: About 4 in 10 institutions report uncertainty about managing the additional budgetary costs associated with compliance. Eliminating programs, reducing professional development funds, and increasing housing rates are the most considered strategies at this time.
- Adaptive strategies: Many institutions are considering adaptive strategies to manage the changes, including restructuring positions, reducing business hours for after-hours support, changing to a flex work week, and implementing less restrictive on-call policies.
The full poll results are available to download below. They are also available in the ACUHO-I online community.
About ACUHO-I
ACUHO-I is the leading association for campus housing and residence life staff members with more than 17,000 professionals representing 3.2 million on-campus student residents from around the globe. ACUHO-I offers educational events, authoritative publications, and credible data and research that demonstrates the positive effect that campus housing and residence life have on student recruitment, retention, growth, and achievement.
