Fair Labor Standards Act
What is FLSA?
The Fair Labor Standards Act (FLSA) is a federal law enacted in 1938 under the Department of Labor (DOL) and applies to employees working in all industries across the U.S. The FLSA determines, among other things, whether a position is eligible for overtime pay.
- An “exempt” position is not eligible for overtime pay
- A “non-exempt” position is eligible and must receive overtime pay at time-and-one-half for any hours worked above 40 hours in one workweek*
- Certain job categories are exempt from FLSA, including most faculty members
Effective December 1, 2016, the salary threshold over which an employee may be considered “exempt” from overtime requirements.
- From $455 per week ($23,660 per year) regardless of FTE
- To $913 per week ($47,476 per year) regardless of FTE
It is the intention of MSU that the actual job duties an employee performs will not change as a direct result of the updated regulations. However, there may be a need to adjust some of the assigned duties depending on the position, department, and budget.
What Qualifies as Overtime?
Overtime is considered any time worked in excess of the standard 40* hour work week. Overtime can be tricky to calculate when classifying time worked. Contact Human Resources for resources or help in qualifying Overtime.
Moving Forward: Managing Overtime
- Who works overtime
- Adjusting/staggering schedules to avoid Overtime
- Stipulating when Overtime is worked
- Configuring how extra hours will be compensated
- Approval process and office expectations
- Potential cultural impacts within your office
Managers and supervisors may need to set new expectations and change department schedules or behaviors in order to manage overtime according to their budgets. Overtime may occasionally be necessary and should be pre-approved by the supervisor; however, whether pre-approved or not, it must always be paid. A clearly defined approval process can assist you and your employees in managing both time and budget resources.
- Know who is shifting to non-exempt status
Know when overtime work is really required
- Know and enforce overtime pre-approval process
- Communicate actively with impacted employees and encourage employees to attend training workshops on overtime rules and process