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
- Fair Labor Standards Act (FLSA)
- FLSA 516 – Records to Be Kept by Employers
- US Department of Labor, Employment Standards Administration, Wage and Hour Division
- Fact Sheet 21 – Recordkeeping Requirements under the FLSA
- Personnel Policies for Staff Members (PPSM) – employees not covered by a collective bargaining agreement:
- Absence from Work Policy
- PPSM 30 – Compensation
- 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