Fair Labor Standards Act (FLSA)

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

  • Establishing the criteria for a job to be exempt or nonexempt
  • Establishing the federal minimum wage required for all nonexempt jobs
  • Guaranteeing overtime for nonexempt jobs for hours worked over 40 in one work week
  • Governing the employment of minors

Department of Labor link can be found here.

Guidelines/Practices for Nonexempt (Hourly) 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


UPDATE: FLSA Changes 2024

On Tuesday, April 23, the Department of Labor announced changes to the definition of what compensation amount qualifies to be salaried. You can find the Department of Labor announcement here. The University has been monitoring this potential development for several months and continues to track the final results of this process, as there is still the potential for legal challenges to this final ruling. These changes will not affect our faculty per the definitions created by this rule.

University administration and the Office of Human Resources will continue working toward best defining how this will affect our University family members. As the University continues managing these changes, information and updates can be found here on the Human Resources website.