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Proposed Fair Labor Standards Act (FLSA) Changes

Frequently Asked Questions

What is the Fair Labor Standards Act (FLSA)?

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting all United States employees in the private sector and in Federal, State, and local governments, including Higher Education.  Employees are either 鈥渆xempt from overtime鈥 or 鈥渘on-exempt from overtime鈥 pay based on FLSA regulations.  The U.S. Department of Labor (DOL) administers the FLSA regulations.

What are the current FLSA Regulations?

Under the current regulations, a position must satisfy three criteria to qualify as exempt from overtime:

  1.  The incumbent in the position must be paid on a salaried basis (the salary basis test);
  2. The salary must be at least $684 per week or $35,568 annually (the minimum salary requirement or salary threshold); and
  3. The position鈥檚 鈥減rimary duties鈥 must be consistent with executive, professional, administrative, and computer related positions as defined by DOL (the primary duties test).
Are faculty members or coaches impacted?

Teaching faculty will not be impacted. Teaching faculty are FLSA exempt, regardless of their annual/weekly salary, if their "primary duty is teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge." Typically coaches also qualify as FLSA exempt under this "teaching exemption" and will not be affected by the changes.

What is changing and why?

On November 15, a federal judge in the Eastern District Court of Texas ruled to invalidate the Biden administration鈥檚 Fair Labor Standards Act (FLSA) overtime final rule. We are closely watching for any future updates.

What does it mean to be exempt or non-exempt?

Exempt (salaried) employees are excluded from receiving overtime pay. Non-exempt (hourly) employees are required to be paid overtime (at a rate of one and one-half times their regular rate of pay) for any hours worked in excess of forty hours in a seven-day workweek as defined by their employer.

At OHIO, the majority of Administrative and Professional, Executive, and Faculty positions fall under the FLSA exempt category.

How do I determine if I鈥檓 an exempt or non-exempt 帝王会所 employee?

At 帝王会所, exempt employees are paid semi-monthly and do not report time worked in Workforce, our time keeping system. Non-exempt employees are paid on a biweekly basis and enter hours worked into the Workforce timekeeping system.

How do I know if I am impacted by the proposed change?

If you are currently classified as "salaried" and your earnings fall below the new threshold amount, you may be affected by the proposed changes. The University is working to apply a consistent approach to these changes to ensure fairness within pay ranges. Therefore, even if you currently earn above the new threshold, you might still be impacted to maintain consistency within your pay range. This would be to ensure current, and potentially future employees, in the same position would have a consistent determination. University Human Resources will notify affected employees after the University has assessed the implications and communicated with University departments.

If I am impacted by this change, will my pay schedule change?

Impacted employees will switch from a semi-monthly to a bi-weekly pay schedule.

What is the difference between biweekly and semi-monthly pay?

Biweekly pay means employees are paid every two weeks, typically resulting in 26 pay periods per year. Semi-monthly pay means employees are paid twice a month, usually on specific dates such as the 15th and the last day of each month, resulting in 24 pay periods per year.

What does being paid in arrears mean?

Paying in arrears means you pay an employee for work they completed in the previous pay period. This is in contrast to 鈥渃urrent pay,鈥 which is when an employer pays an employee the last day of the workweek. Arrears payments are utilized for hourly employees to ensure all the hours worked are accurately captured and recorded.

Will employee benefits change for positions that are reclassified to non-exempt?

Employees whose positions are reclassified to non-exempt will change to the appropriate leave accrual schedule. However, the annual accrual rates will not change.

What else will be impacted by this change for positions that are reclassified to non-exempt?
  • Time Reporting: Non-exempt employees record all hours worked in WorkForce on a biweekly schedule. Applicable compensatory or overtime hours are recorded and paid accordingly.
  • Overtime for Non-exempt employees: Non-exempt employees must record all hours worked, including overtime hours, and will receive additional pay for overtime. All overtime must be pre-approved by your supervisor.
What is considered overtime?

The hours an employee works over 40 hours in a workweek is called overtime. It is paid at a standard rate of time and a half or 1.5 times the standard hourly rate. 

Can a non-exempt employee still work early and late? Can a non-exempt employee check messages from home after work hours?

The change of moving from salaried (exempt) to hourly (non-exempt) is focused on ensuring work hours are reported and paid, not when they are worked. Hourly employees (non-exempt) can still request alternative scheduling arrangements with their managers; however, all time worked must be recorded within the timesheet. All current and future alternative scheduling arrangements will have to be revisited with your management, with an understanding as to when overtime is permissible. 

How and when will affected employees be notified of any changes?

On November 15, a federal judge in the Eastern District Court of Texas ruled to invalidate the Biden administration鈥檚 Fair Labor Standards Act (FLSA) overtime final rule. We are closely watching for any future updates.

If I am an employee with a salary over the new threshold, will I automatically remain an exempt employee?

While your salary exceeding the new threshold may indicate that you will remain an exempt employee, it's important to note that additional factors may influence your classification. The University is ensuring consistent application of these changes across pay ranges, which may impact your classification despite your salary level. 

If I am an employee with a salary under the new threshold, do I have the option of remaining exempt?

No. The FLSA is a federal law. The determination of an employee鈥檚 FLSA status is governed by the requirements of the federal law 鈥 it is not an employee choice. It is at the discretion of the organization with regard to each individual鈥檚 compensation, position responsibilities, position exemption status for positions with same or similar titles, and the new regulation. In order to be exempt from FLSA provisions (not eligible for overtime), employees must pass both the duties test and salary tests. If you do not pass these tests, you must be paid for overtime hours worked under the law. Exempt employees must also be paid on a salary, not hourly, basis. 

Where can I get more information?

Complete information on the new rule is available from . Please contact Human Resources at 740-593-1636 or by email at UHR@ohio.edu. FAQs will continue to be updated as we learn more. 

How do the overtime pay requirements apply to part-time workers?

Part-time workers are required to meet all three tests (the duties test, salary basis test and salary level test) to be exempt from overtime pay requirements. Regardless of full- or part-time status, employees must be paid at least the minimum salary threshold on a weekly basis in order to be exempt from overtime pay requirements. It is important to note that the minimum salary threshold cannot be prorated for part-time employees.

How do you determine nonexempt/exempt status for partial-year employment? For example, how do you determine exemption status for employees who work for less than 12 months per year but are paid their salary over a 12-month period?

According to the Wage and Hour Division (WHD) Field Operations Handbook, institutions 鈥渕ay prorate the salary of an otherwise-exempt employee who has a duty period of less than a full year.鈥 For example, an employee who works a nine-month schedule but receives paychecks over a 12-month period may have their checks prorated over the actual period of work (nine months) to determine whether the employee is paid at least the salary threshold. It is important to note, however, that the nine-month employee cannot perform any work outside of the nine-month period if employers choose to prorate their salary to meet the minimum salary threshold.
 

Can institutions provide compensatory time to nonexempt employees in lieu of overtime pay?

Yes. Temporary hourly, non-exempt employees are not eligible to receive compensatory time off in lieu of overtime pay. Other hourly, non-exempt employees may elect to receive compensatory time off in lieu of overtime pay. Such compensatory time is also awarded at the premium rate of one and one-half hours of time off for each hour of overtime. A maximum accrual of four hundred eighty hours is permitted for intermittent employees; a maximum accrual of two hundred forty hours of compensatory time is permitted for other employees. When the maximum hours of compensatory time accrual is reached, compensation for overtime shall be made in cash.

For more information regarding compensatory time please visit 40.049: Overtime for Non-Exempt Employees.

If I have to work during one of the three Winter Break Closure days, how do I code that time?

You will code the time in WorkForce as hours worked and you will take a day off in the future. This day should be taken as soon as possible, but no later than June 30. When you do take the day off, you will use the pay code of 鈥淥ther鈥 in WorkForce to record your time and indicate "WBC" in the comments.

Is any time over 40 hours in each workweek eligible for OT pay/comp time? Or is it calculated based on the two-week (80 hour) pay period?

Overtime is considered any time worked over 40 hours per work week, not the two-week (80 hour) pay period. A work week is considered Sunday through Saturday. EX: If you work 44 hours in week one of a pay period, you will be paid 4 hours of overtime, even if you only have 36 hours worked in week two.

Can you flex work hours from week to week in one pay period to avoid overtime?

No, because overtime is calculated based on the 40-hour work week. You cannot flex your time from week to week, it can only be flexed in one work week. EX:  If an employee works 44 hours in week one of the pay period they cannot flex the following week by working 36 hours.

Why does my paystub show an hourly rate if I鈥檓 salaried, and what does it mean if my rate changes after the FLSA update?

1.    Why is there an hourly rate on my paystub?
Even for salaried employees, our payroll system calculates and displays an hourly rate based on the number of days in the pay period. This rate may fluctuate slightly between pay periods depending on the length of the pay period (e.g., if one pay period is longer or shorter than another). Please note that this variation does not reflect any actual change in your salary. The total amount you are paid for the pay period is accurate, but the hourly rate displayed is for informational purposes and can shift due to payroll system settings.

2.    If I鈥檓 transitioning to hourly, how can I check my correct hourly wage?
If you are a full-time (1.0 FTE), 12-month employee, you can generally estimate your hourly rate by dividing your annual salary by 2,080 hours (the number of working hours in a year for a full-time employee). However, please note this calculation applies to full-time, 12-month employees. Part-time employees or those with different contract lengths or schedules may have different calculations. For your official hourly rate, please refer to your job offer letter, or contact your HR liaison if you have questions about your rate.

How should non-exempt employees handle business travel, including overtime versus flex time,
and attendance at overnight conferences?

Supervisors will provide guidance to employees who are non-exempt (hourly) before they travel. A travel
guide is linked below for your reference. If there are questions or specific circumstances which need
further clarification, please contact your respective HR Liaison or the compensation team at compensation@ohio.edu.

abor

Non-Exempt Employees FLSA Travel Pay Chart
Travel CategoryCompensable TimeNon-compensable Time
Commuting
  • Performing authorized work-related errands while commuting from home to work or from work to home.
  • Transporting or delivering materials or equipment to a job site prior to the start of the work day and/or returning materials or equipment after the end of the work day
  • Transporting other employees to work sites, to the office, or to their homes either before or after the workday at management request
Ordinary travel from home to work
(commuting time)
Travel During the Work Day
  • Time spent in travel as part of the
    member鈥檚 principal job activity (i.e.,
    travel between job sites)
 
One-Day Assignment in Another Town or City
  • Time spent traveling to and returning from a one-day required assignment in another city or town regardless of whether employee is the driver or the passenger, regardless of whether the travel cuts across the normal work schedule.
  • Time spent at required conference,
    meeting, etc.
  • Normal commuting time will be subtracted.
  • Time not worked even if it cuts across the employee鈥檚 regular work schedule (e.g., employee goes sightseeing instead of attending a conference session, the conference sessions are only from 9a.m. to 3 p.m., etc.).
  • Meal periods and social activities where attendance is not required and work is not performed
Travel Away from Home Community (Overnight Travel)
  • Any portion of authorized travel, including time spent waiting at an airport, bus station, etc., that cuts across a member鈥檚 normal work
    schedule, including non-work days.
  • If an employee travels between two or more time zones, the time zone associated with the point of departure determines whether the travel falls within normal work hours.
  • Riding as a passenger when the member is required to perform work (for example, to serve as an assistant or helper, respond to email, take business-related phone calls, etc.).
  • Driving a vehicle, regardless of whether the travel takes place within or outside normal work hours.
  • Time spent attending authorized conferences, meetings, etc.
  • Required attendance at meals or meal breaks where work is performed.
  • Required attendance at social functions.
  • Any portion of authorized travel, including time spent waiting at an airport, bus station, etc., that falls outside of normal work hours.
  • Riding as a passenger outside of normal work hours where work is not required.
  • Travel between hotel and meeting site.
  • If an employee drives a car as a matter of personal preference when an authorized flight or other travel mode is available and paying for travel by car would exceed the cost of the authorized mode, only the est mated travel time associated with the authorized mode will be counted as hours worked
  • If the University authorizes hotel accommodations for overnight travel but the employee prefers to drive home each evening.
  • Regular meal periods where work is not performed and attendance is not required.
  • Voluntary attendance at social functions.
  • Time spent outside of the conference or meeting (e.g., employee goes sightseeing instead of attending a conference session, the conference sessions are only from 9a.m. to 3 p.m., etc.)
  • Time spent sleeping unless the member has the primary responsibility for the safety and welfare of students.