The Fair Labor Standards Act (FLSA) is a federal regulation that:
- Establishes the criteria for a job to be exempt or nonexempt
- Establishes the federal minimum wage required for all nonexempt jobs
- Guarantees overtime for nonexempt jobs for hours worked over 40 in one work week.
- Governs the employment of minors
FLSA – The Basics:
According to the FLSA, all jobs are generally considered to be nonexempt. All nonexempt employees are required to be paid a minimum of $7.25/hour and 1 1/2 times their regular hourly rate for any hour(s) worked over 40 in one work week, as well as keep an accurate account for all hours worked.
An employee may qualify to be exempt from the overtime and minimum wage provisions if they meet the criteria established by the Department of Labor. Most exempt jobs must be paid on a salary basis as well as perform work duties that the FLSA defines as exempt.
FLSA Changes 2016:
On May 18, 2016, the U.S. Department of Labor (DOL) issued a mandate employers must follow in order to comply with the FLSA. These changes will impact several million employees across the United States, including several hundred employees within our institution by making them non-exempt and eligible for overtime compensation.
The new mandate increased the salary for exempt level positions from $23,660 a year ($455) weekly to $47,476 ($913 weekly) for exempt level positions effective December 1, 2016. The DOL will also update the salary threshold every three years going forward, beginning in 2020.
The new mandate will be applied to managerial level roles. The Office of Human Resources (HR) identified the positions that will maintain Exempt status and increase salaries to new threshold.
Training sessions for guidance on this mandate, as well as best practices and processes regarding Compensatory Time and Overtime Guidelines for the university, will be hosted by HR beginning on Friday, November 11, 2016. Registration for these sessions is available via the Training and Development website; click here.