What is the FLSA?
The Fair Labor Standards Act (FLSA) is a group of federal rules and regulations that determine eligibility for overtime pay. In August 2004, major changes to these rules and regulations were implemented by the Department of Labor (DOL). The gist of the FLSA is that if you perform duties that do not meet one of the exemption tests developed by the DOL, your position is classified as “non-exempt” or “NE,” and you are eligible for overtime pay. However, if you perform duties that meet one of the exemption tests developed by the DOL, your position is classified as “exempt” or “E” and you are not protected by the FLSA.
One significant change to the FLSA in 2004 is the salary limit. Under the new rules and regulations, employees earning less than $23,660 per year or $455 per week are automatically non-exempt and guaranteed overtime protection, regardless of the job title or duties assigned to their positions.
How does the FLSA impact UWG?
In August 2004, the Department of Labor released new rules and guidelines for the Fair Labor Standards Act (FLSA). The FLSA is the federal regulation that determines whether or not an employee is eligible for overtime pay. As a result of the new FLSA rules and guidelines, the Board of Regents (BOR) completed a project to review all job titles utilized by institutions in the university system to ensure compliance. The project began in September 2005, and was led by Jeff Thompson, of Constangy, Brooks and Smith, LLC, an attorney hired by the BOR to oversee the FLSA reviews conducted by the institutions.
As a result of this project, there were changes in the FLSA status for some job titles at University of West Georgia. These job titles were listed in the university’s pay plan as exempt (E), and were changed to non-exempt (NE), effective July 1, 2006.
Where can I find additional information about the FLSA?
The Department of Labor has a very good website on the Fair Labor Standards Act (FLSA). Go to: http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm
If you earn under $455 per week or $23,660 per year you are automatically non-exempt under the FLSA.
Exemption or Duties Tests
If your assigned duties do not meet the “test” for one of the exemptions identified by the Department of Labor, you are non-exempt. The exemption categories under the DOL are:
- Academic Administrative
- Professional: Learned vs. Creative
- Computer Professional
- Highly Compensated
- Combined Exemption
- Outside Sales
For more information about the exemption or duties tests, go to: http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm
Non-exempt vs. Exempt
If your position is classified as non-exempt (NE), you are protected by the FLSA and guaranteed overtime pay for the additional hours worked over 40 in a work week. If your position is classified as exempt (E), you are not protected by the FLSA or eligible for overtime pay.
Overtime pay is calculated at one and a half times your regular rate of pay. Overtime pay is applicable for hours worked in excess of 40 in a work week. For more information about overtime pay, go to: http://www.dol.gov/dol/topic/wages/overtimepay.htm