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

• HR Administrative Process Training - presentation
• Managers/Supervisors Guide
• Employee Guide