Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal regulation that:

  • Establishes the criteria for a job to be exempt or nonexempt
  • Establishes the federal minimum wage required for all nonexempt jobs
  • Guarantees overtime for nonexempt jobs for hours worked over 40 in one work week
  • Governs the employment of minors
Guidelines/Practices for Nonexempt Employees
  • The University work week begins at 12:01 am on Sunday and ends at 12 midnight the following Saturday
  • All hours worked are paid on an hourly basis
  • Hourly rate of pay is subject to the state of Michigan's minimum wage
  • Total hours worked for the work week under 40 will be paid at the regular rate of pay
  • Total hours worked for the work week above 40 will be considered overtime and be paid at one-and-one-half-times the regular rate of pay
  • Paid-leave and long-term sick leave time are paid at the regular rate of pay and are not taken into consideration for the purpose of calculating overtime for that work week
  • For multiplie positions at different rates of pay:
    • The regular rate for overtime calculation purposes will be a weighted average of all hourly rates
    • Overtime pay will be automatically charged to the primary position
    • Overtime charges will need to be reviewed by all departments to determine actual distribution of overtime hours (any reimbursement must be processed through accounting)
  • Under no circumstances is compensatory time (comp time) permitted; instead, an employee's schedule may be adjusted during the work week to provide time-off in place of working at overtime rates
2016 FLSA Changes