COMPENSATION

Notice to all MSU Employees: Earlier this fall, Mississippi State University advised certain employees that they would become eligible for overtime in response to changes to the U.S. Department of Labor's Fair Labor Standards Act (FLSA). Those changes were to become effective on December 1. A federal court issued an injunction late last week stopping, at least temporarily, the nationwide implementation of those changes to the FLSA. Because of that, we are suspending, effective immediately, the changes made November 1 in overtime eligibility while we consider the court's determination and the impact that it has on our employees. We will continue to monitor this developing situation and keep you informed as we obtain additional information from the federal government and the courts. If you have specific questions, please contact MSU's Office of Human Resources Management.

FLSA Introduction

  • The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and recordkeeping requirements for employees in the private sector and in federal, state, and local governments. Teaching faculty and certain other positions are exempted from the overtime pay requirements of the FLSA.
  • The Department of Labor (DOL) relies on salary level and other factors such as job duties to determine which employees are protected by the FLSA’s minimum wage and overtime regulations (referred to as non-exempt employees), and which employees are exempt from the minimum wage and overtime regulations. The Department has updated the salary level requirements seven times since 1938.
  • In March 2014, President Obama directed the DOL to update the salary level requirements that had been in place since 2004. The DOL announced a final rule updating the salary level requirement for employees in May 2016.
  • According to the updated regulations, employees whose annual paid base salary is less than $47,476 a year or $913 a week are now classified as non-exempt employees who are subject to the updated FLSA regulations governing overtime and recordkeeping unless their job duties alone (such as teachers) make them eligible for an exemption.
  • Mississippi State University’s initial assessment shows approximately 777 employees are affected by the changes to this federal law.
  • The updated regulations become effective December 1, 2016. However, due to our payroll schedules for the month of December, MSU will implement changes required to be in compliance with the law on November 1, 2016.
  • The FLSA regulations include some exceptions that allow employees making below the salary level to be classified as exempt while being paid below the new required salary level. Examples include teachers, administrative employees in educational establishments whose primary duty is performing administrative functions directly related to academic instruction or training, and partial year employees (such as 9 month or 10 month employees). Students who are employed as Graduate Assistants are also exempt from FLSA regulations.