HR-202 FLSA Status

Summary

The University complies with the provisions of the Fair Labor Standards Act (FLSA) applicable to public employers and educational institutions. To assure compliance with the FLSA, the University Human Resources will be responsible for applying the appropriate tests, as defined in the FLSA, for determining the exempt status of a position.

HR Policy Provisions

1. Description
   
   1. FLSA establishes overtime rules, recordkeeping, and child labor standards affecting full-time and part-time employees.
   2. For exempt employees subject to the University paid leave program, absences may result in pay reductions if paid leave is exhausted.
   3. Employees classified as nonexempt are paid overtime as described under the University's policy on overtime HR-211.
   4. Classification of positions as exempt or nonexempt must be approved through Human Resources before implementation.
2. Work Week
   
   1. Per FLSA, a work week is defined as seven consecutive 24-hour periods.
   2. The University has defined the work week beginning on Sunday 12 a.m. (midnight) and ending on Saturday 11:59 p.m.
   3. Under FLSA, non-exempt, hourly employees are entitled to receive one and one-half times their regular rate of pay for all hours worked in excess of 40 in each workweek. Each week is calculated separately from other weeks, regardless of the pay period.
3. Dual Appointments
   An exempt employee, with supervisory approval, may also work in nonexempt concurrent appointments. However, the University may limit the extent of such appointments to ensure adherence to the Fair Labor Standards Act.
   1. The FLSA permits only one designation to be assigned to an employee and does not permit regular change between exempt/nonexempt status as work emphasis shifts.
   2. An employee cannot work in non-exempt concurrent appointments(s) to the extent that it compromises their exempt status.
   3. To comply with FLSA regulations,
      
      1. an exempt employee may not work in concurrent non-exempt appointments which total more than two-thirds (2/3rds) the FTE of the exempt appointment. OR
      2. 40% of all time worked (exempt and non-exempt appointments combined) in a 40-hour work week, is the maximum number of hours an exempt employee can work in nonexempt, secondary appointment(s).
   4. In the event the two-thirds or 40% threshold is exceeded, an exempt employee will have their status changed to nonexempt. This change will be made retroactive to the payroll period during which the status change is determined to have occurred and will remain in effect until all nonexempt, concurrent appointments are permanently established within acceptable limits.
4. Resources
   • UM System Human Resources Compensation - FLSA https://www.umsystem.edu/totalrewards/compensation/fair_labor_standards_act
   • Contact your campus, hospital, or system HR representative for questions.

See Also

HR-116 Employment of Minors

HR-211 Overtime

HR-219 Pay Periods

Date Created: 09/26/1997

Last Updated: 07/01/2002; 10/01/2019