Fair Labor Standards ActWhat is it and why is it important?

What is the FLSA?• Made up of federal and commonwealth statutes

• Part of the New Deal of 1938

• What does it cover?• 40-hour work week

• National minimum wage

• “Time and a half” overtime

• Compensable time

• FLSA recordkeeping

• Child labor laws

Who does FLSA cover?

• All employees of the university• Faculty

• Staff

• Coaches

• Adjuncts

• Students

• Everyone!

FLSA does NOT cover

• Volunteers• See Human Resources

• Independent Contractors• See Purchasing department

• Hours per day asked to work

• Non-exempt hourly rates

• Benefits

• Leave

• Vacation accrual

• Rest breaks

• Medical

• Dental

• Retirement

• Commuting to work

FLSA Minimum Wage

• Nonexempt workers must be paid at least $7.25 to comply with the FLSA.

• Exempt workers must make at least $455 per week.

• Pennsylvania minimum wage is $7.25.

• A training wage may be available for workers under 20 years old.

• Some of these terms are under revision and may be changed in the next year.

FLSA Overtime

• FLSA overtime is based on a 37-40 hour work week

• Available to those who do not meet the exempt requirements

• Overtime is calculated at 1.5 times the hourly rate.

• Overtime hours can be assigned by your employer.

• If a nonexempt employee is offered an additional role, please check with Human Resources.

FLSA Recordkeeping

• The Department of Labor requires the university to record and maintain the following information:• Personal information

• The start of the work week which is on Monday at 12:01AM

• Total hours worked each workday and each workweek

• Total daily or weekly straight-time earnings

• Total overtime pay for the workweek

• Total wages paid each pay period

• For non-exempt employees, this information is tracked on the time system.

How does this affect you?

• Staff and faculty in higher education are broken down into exempt and non-exempt employees. It’s important to know the difference and what to expect.

• Whether you are exempt or non-exempt depends on what you do rather than your title.

• Exempt: If you are exempt, this means that you are exempt from overtime provisions of the law.• You are also ineligible to be paid on an hourly basis.

• Non-exempt: You are required to get overtime pay for any hours worked over 40 in a week.• Work on a per hour basis

• No comp. time

• Cannot substitute extra hours for time off

• Must be paid overtime

Who is exempt?

• Executive employees• Management of department

• Authority to hire and fire

• Can make recommendations on employee status

• Administrative Employees• Primary duty- office work or exempt level (Not

transactional)

• General business operations

• Makes decisions such as creating policy (significance)

• Professional Employees• Requires advanced knowledge in a science or

learning field accompanied by prolonged formal education OR talent or invention recognized in the art of creative field.

• Teaching

• Outside sale representatives

• These exempt employees must make a minimum of $455 per week for every week worked.

Thank you!