Fair Labor Standards Act (FLSA)

FLSA Overview

The Fair Labor Standards Act (FLSA) is the United States’ federal wage and hour law, administered by the US Department of Labor (DOL). Among other things, the FLSA establishes minimum hourly wage, overtime pay, recordkeeping, and youth employment standards. For FLSA purposes, employees are either "exempt" or "non-exempt" from minimum hourly wage and/or overtime pay.

Overtime Defined

Overtime is work time of more than 40 hours a week on one or more University jobs. Unless exempt, employees must receive overtime pay for hours worked over 40 in a work week at a rate not less than time and one-half their regular rate of pay.

Fair Labor Standards Act (FLSA) Changes 2024-25

US Department of Labor (DOL) has announced a phased approach to implementation. On January 1, 2025 the salary threshold is scheduled to move to $58,656 per year ($1,128 per week), meaning that any non-instructional employee making less than this threshold must be eligible for overtime pay of at least 1.5 times their regular pay if and when they work more than 40 hours per week. This change will go into effect January 1 unless it is challenged in court resulting in an injunction. 

Determining who is "exempt from overtime" pay under FLSA regulations:

Under current FLSA regulations, a position must satisfy three tests to qualify as exempt from overtime:

  1. Salary basis test: This test requires that an exempt employee be paid a salary, and it limits the types of deductions that can be made to the employee’s salary.
  2. Salary level test: This test requires that an exempt employee be paid at least the FLSA minimum salary amount. As of July 1, 2024, this amount changed to $43,888 a year or $844 a week. Beginning January 1, 2025, the annual salary threshold increases to $58,656 or $1,128 per week. 
  3. Primary duties test: This test requires that an exempt employee typically perform executive, administrative, professional, or creative professional job duties. An employee's job title alone is insufficient to pass this test; this test is based on the employee's primary duties.

Employees that fail to meet all three of these tests generally must be considered non-exempt and must be paid at least minimum wage and overtime. For more information, you can visit the Department of Labor's website.

Frequently Asked Questions

Updated: 11/04/2024 11:37AM