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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 Obama 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 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. 

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 rules. 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 as an executive, administrator, professional, or computer professional.

There are two exceptions to the minimum salary level amount particularly applicable to institutions of higher education.  First, teachers (and some coaches) can be paid any salary amount and still be exempt. Second, certain non-teaching academic employees (e.g., academic advisors) can be classified as exempt when they are paid less than the minimum salary amount if their weekly salary level is equivalent to the weekly salary level of entry level instructors at the institution.

Also, note that less-than-1.0 FTE employees are still required to meet the minimum 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 an exempt classification. Since 2004, the minimum salary amount has been $455 per week (or $23,660 annually). This is rising to $913 per week (or $47,476 annually). This salary amount will also be subject to an automatic adjustment every 3 years so that it will continue to rise in the future.

When do the amendments take effect?

The amendments were announced on May 18, 2016, and will become effective on December 1, 2016. The University is working to ensure compliance between now and December.

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 $23,660. However, at UCM, as well as other institutions around the country, some of these employees are below the new $47,476 threshold. 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颅 classified as non-exempt.

In some cases when an employee is relatively close to the $47,476 figure and is expected to work more than 40 hours in a workweek on a somewhat regular basis, the University may decide to give the employee a salary raise so that he/she can still be classified as exempt. But, in most situations where an employee has historically be classified as exempt but is paid less than $47,476, the University will be re颅 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 and/or comp time 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 December 1, 2016.

What standards are in place at the University governing overtime?

The University is currently working to standardize its policies, procedures, and practices regarding tracking and recording work hours, overtime guidelines, comp time, and related matters. 

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 .