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Fair Labor Standards Act

What is the Fair Labor Standards Act?

The Fair Labor Standards Act (FLSA) is a federal law which establishes minimum wage, overtime pay eligibility, record-keeping and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

What is the difference between exempt and non-exempt employees?

Non-exempt employees are eligible to earn overtime, while exempt employees are not. If you are a non-exempt employee, you will utilize the Time Tracker System to document all time worked on a daily basis, as well as leave time taken. If you are an exempt employee, you will not be required to track your time and will still use Self Service Banner for leave purposes. 

What is changing for Arkansas State University?

On November 22, 2016, a federal court granted a preliminary injunction nationwide to halt the Fair Labor Standards Act overtime rules that were set to go into effect on December 1. Specifically, the preliminary injunction prevents the implementation of the Department of Labor’s Final Rule which would have changed the salary threshold for employees to be eligible to receive overtime from $23,660 to $47,476. 

Arkansas State University will move forward with the implementation of the Time Tracker System, as of December 1, using the current salary of $23,660. To be exempt from earning overtime under FLSA regulations, employees must meet a three-prong test:

  1. Must be paid on a salary basis.
  2. Must earn a minimum of $23,660 annually.
  3. Must meet the test for executive, professional or administrative duties.

Employees who do not meet the three-prong test will be non-exempt and eligible to earn overtime. To ensure compliance with these updated regulations, non-exempt employees must log the time they are working each day and week. 

How do I know if I am an exempt or non-exempt employee?

Human Resources sent out communication to all full-time employees notifying them of their exemption status. If you have questions about your status, please contact the Office of Human Resources.