The FLSA is a federal law originally enacted in 1938. Under the authority provided by the FLSA, the U.S. Department of Labor sets requirements like the minimum wage, overtime pay, recordkeeping and standards for employing young people. For more information, visit the Department of Labor's webpage titled Compliance Assistance - Wages and the Fair Labor Standards Act (FLSA).
Updates to FLSA – April 2024 Update
On April 23, 2024, the U.S. Department of Labor announced its final overtime pay regulation, which would increase the minimum salary threshold for most exempt employees (those exempt from overtime pay).
The rule originally was proposed last September, and since that time, we have been monitoring the issue closely. A project team including representatives from Human Resources, Finance, General Counsel and Strategic Communications has been proactively preparing as we awaited final details.
The team is reviewing the final rule, confirming the employee impact, and preparing to bring recommendations to University leaders.
How does the FLSA affect the UM System?
The university complies with the provisions of the FLSA applicable to public employers and educational institutions. In an effort to assure compliance with the FLSA, the university has established a number of policies as part of the UM System HR Policy Manual, including:
- HR-106 Reporting Hours Worked
- HR-202 FLSA Status
- HR-205 Position Classification and Compensation
- HR-211 Overtime
- HR-212 Standby
- HR-215 Compensatory Time
- HR-503 Rest Periods
Non-exempt (hourly) employees are covered by the FLSA with regard to overtime, minimum wage, equal pay, recordkeeping and child labor provisions. These same provisions also apply to exempt (salaried) employees except tenets regarding overtime, minimum wage, suspensions, partial-day pay withholdings and recordkeeping. For example, the FLSA sets a 40-hour workweek as the standard workweek and requires the university to pay at least 1.5 times a non-exempt (hourly) employee's regular pay for overtime hours. Exempt (salaried) employees are not covered under the same requirement.
Reviewed 2024-04-25
