What is the Fair Labor Standards Act?
The Fair Labor Standards Act (FLSA) is a 1938 federal employment law administered by the U.S. Department of Labor. It sets a minimum hourly wage, a 40-hour workweek, overtime rules, timekeeping requirements and child labor standards. The guidelines affect full-time and part-time workers in the private sector and in federal, state and local governments.
What is changing about the Fair Labor Standards Act?
The most significant change to the revised regulations is the salary level, which is one factor in determining who gets paid overtime. The new annual salary threshold is set at $47,476, or $913/week.
What jobs are excluded?
The Department of Labor made certain exceptions for higher education employers. The salary threshold of $47,476 does not apply if the employee is a:
- Coach
- Teacher
- Student
- Academic Administrative Personnel
When do these changes go in to effect?
The Department of Labor has given employers until December 1, 2016, to comply with the new regulations.
What is the difference between Exempt and Nonexempt status?
Exempt – Not eligible for overtime pay or compensatory time. Exempt employees are expected to work the hours needed to complete their jobs.
Nonexempt – Must be paid for all hours worked, including overtime, if the employee works more than 40 hours in a work week.
Who determines if a position is Exempt or Nonexempt?
The Compensation Analysts in University Human Resources (UHR) at University of Maryland (UMD) make the final determination on whether or not each position is Exempt or Nonexempt based on the job duties and responsibilities.