Fair Labor Standards Act (FLSA)

I. Summary

Since a 1986 court decision, the University has been subject to the provisions of FLSA and its subsequent amendments. Examples of FLSA provisions are:

  • Definitions of employees who are non-exempt and subject to the provisions of FLSA, as well as those who are Exempt from the FLSA

  • Definitions of workweek, hours of work, and overtime

  • Definitions of the appropriate rate of compensation for non-exempt employees

  • Accrual of compensatory time off banks and accrual limits

  • Record keeping requirements

  • Basis for policy and collective bargaining agreement language on overtime

  • Penalties for willful violation of the Act


II. Related Policies, Contract Articles and References

  1. Fair Labor Standards Act (FLSA)  http://www.dol.gov/whd/flsa/index.htm

  2. FLSA 516 – Records to Be Kept by Employers http://www.dol.gov/dol/cfr/title_29/chapter_v.htm

  3. US Department of Labor, Employment Standards Administration, Wage and Hour Division

  4. Fact Sheet 21 – Recordkeeping Requirements under the FLSA http://www.dol.gov/whd/regs/compliance/whdfs21.pdf

  5. Personnel Policies for Staff Members (PPSM) - employees not covered by a collective bargaining agreement:

    • Absence from Work Policy

    • PPSM 30 – Compensation

  6. Union Agreements - employees covered by a collective bargaining agreement

 


III. Criteria

FLSA EXEMPTION DEFINITIONS

Each classification title has been designated as either non-exempt or exempt. The campus Title and Pay Plan(s) list the overtime exemption status code under the category OES. The code is listed as either N (Non-Exempt) or E (Exempt).

Non Exempt Employees:

Employees who, based on duties performed and manner of compensation, shall be subject to all FLSA provisions. Non-Exempt employees are characterized by the following:

  • Are treated as “hourly”, as defined by FLSA – compensation varies depending on the number of hours worked

  • Receive overtime compensation or compensatory time off (CTO) per management discretion, collective bargaining or pursuant to CTO Agreement

  • Required to record all time worked and leaves used on an hourly and fractional (¼) hourly basis

  • Leave balances for absences of less than a day are deducted and pay is subject to docking if leave balances are exhausted;

  • Corrective action - suspensions without pay for periods of one day or more are permitted. An employee with a work period of six (6) continuous hours or more receives a one half-hour meal period

  • An employee on a standard or alternate full-time work schedule is granted “two-15 minute” rest periods. Part-time employees may be granted 15 minute rest periods for each work period of three (3) continuous hours or more, not to exceed two rest periods a day

  • Eligible for shift differential, on-call pay, call back time, pay for working on a holiday


Exempt Employees:

Employees who, based on duties performed and manner of compensation, shall be exempt from the FLSA minimum wage and overtime provisions. Exempt employees are characterized by the following:

  • Are treated as “salaried”, as defined by FLSA – paid an established monthly or annual salary

  • Expected to fulfill the duties of their positions regardless of hours worked

  • Not eligible to receive overtime compensation or compensatory time off

  • Not required to adhere to strict time, record keeping, and attendance rules for pay purposes

  • Leave balances are not deducted for absences of less than a full day or in increments not less than that portion of the day during which an employee on less than full-time pay status is normally scheduled to work

  • Leave balances for absences of less than a full day are not deducted from pay
  • Corrective action – suspensions without pay are generally not permitted for less than one full work week

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