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The Fair Labor Standards Act is the federal wage and hour law, and it is administered by the U.S. Department of Labor.  The FLSA and its regulations cover a lot of material, but a key provision is the establishment of minimum wage and overtime requirements applicable to most employers, including institutions of higher education.

Significant amendments to the FLSA were recently finalized, with the federal administration indicating that an important purpose is to ensure that more workers are eligible for overtime payments.  Because these amendments will necessitate change around campus, the University has prepared the FAQs below for review by interested employees. 

What are the FLSA's minimum wage and overtime requirements?

Under the FLSA, a non-exempt employee (hourly) must be paid at least minimum wage for all hours worked, as well as overtime at one-and-one-half times the regular rate of pay for all hours worked over 40 in a workweek.

The federal minimum wage is $7.25 per hour, but the state of Missouri has a higher minimum wage of $12.30 per hour. 

The University of Central Missouri workweek is Sunday, 12:00:01 a.m. through Saturday, 12:00:00 midnight. Note that the workweek and the pay period do not always align.

What does it mean to be non-exempt and exempt?

The default status under the FLSA is non-exempt.  Non-exempt employees are entitled to receive at least minimum wage for every hour worked and overtime payments for hours worked over 40 in a workweek. This is one reason why non-exempt employees are required to track and record their hours worked.

Exempt means that an employee is not subject to the minimum wage and overtime requirements. This is why exempt employees are not required to track and record their work hours.

What is required for an employee to be exempt?

To be classified as exempt, an employee must:

• Be paid on a salary basis;
• Be paid a minimum salary amount (in most cases); AND
• Meet a duties test to qualify under certain categories, such as an executive, administrator, professional, or computer professional.

There are exceptions to the minimum salary level amount applicable to institutions of higher education.  These exceptions to the overtime requirement do not have a minimum salary threshold; examples include employees whose primary duty is teaching or coaching.

Also, note that less-than-1.0 FTE employees are still required to meet the minimum weekly salary amount to be classified as exempt. The FLSA does not allow this figure to be prorated for part-time employees.

What is changing with the new FLSA amendments?

The amendments to the FLSA are changing the minimum salary amount that is necessary for a salary-based exempt classification. Prior to July 1, 2024, the minimum salary amount has been $684 per week (or $35,568 annually). Effective July 1, 2024, this is rising to $844 per week (or $43,888 annually). Effective January 1, 2025, this is rising to $1,128 per week (or $58,656 annually). This salary amount will also be subject to an automatic adjustment every 3 years so that it will continue to adjust in the future.

When do the amendments take effect?

The amendments were announced on March 1, 2024, and will become effective July 1, 2024, and January 1, 2025. The University is working to ensure compliance between now, July 2024, and January 2025.

What is the practical effect of the FLSA amendments?

Many employees have historically been classified as exempt because, in part, they receive an annual salary of more than $35,568. However, at UCM, as well as other institutions around the country, some of these employees are below the new $43,888 threshold going into effect July 1, 2024, and/or below the January 1, 2025 threshold of $58,656. This has required the University to analyze these positions to determine whether they should continue to be classified as exempt or if they should be re-classified as non-exempt.

In most situations where an employee has historically been classified as exempt but is paid less than $43,888 (as of July 1, 2024) or $58,656 figure (as of January 1, 2025), the University will be re-classifying the position to a non-exempt position. Like all non-exempt employees, a formerly exempt employee who has been re-classified as non-exempt will be required to track and record hours worked. However, those who are re-classified from exempt to non-exempt will receive an hourly rate of pay equivalent to their previous salary level and will now be eligible for overtime payments when they work over 40 hours in a workweek.

Am I going to be transitioned to a non-exempt position?

The University's analysis is ongoing, but those directly affected by the FLSA amendments will be individually notified prior to July 1, 2024 and January 1, 2025.

What standards are in place at the University governing overtime?

The University has standardized its policies, procedures, and practices regarding tracking and recording work hours, overtime guidelines, and related matters. 

The University of Central Missouri鈥檚 Overtime Reporting Policy and Procedure sets forth information about how the university compensates nonexempt employees for overtime worked. 

The University of Central Missouri鈥檚 Flextime Policy for Nonexempt Employees establishes procedures for UCM supervisors and employees when implementing flextime within departments. 

What leave time is calculated toward overtime?

Vacation hours are the only leave time that will count toward overtime calculation.

Vacation time must be approved by the supervisor. If, at any time, extra hours are worked, regardless of whether the week includes a vacation day or not, the supervisor may flex an employee's time to eliminate the overtime. Questions regarding flex time and overtime should be directed to the office of human resources or payroll services.

It is important to understand that sick leave, personal leave, and bereavement leave do not calculate toward overtime.

Where can I find more information?

The University plans on making more information available in the upcoming months as employee transitions are made and when new policies take effect. 

Also, general information about the amendments to the FLSA can be found on the .

Additionally, Department of Labor frequently asked questions can be found on the