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COMPENSATION

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.

FLSA Overtime Final Rule

The U.S. Department of Labor recently issued a Final Rule related to the Fair Labor Standards Act (FLSA) that will impact the criteria to determine eligibility for overtime. Effective January 1, 2020, the salary threshold used to determine eligibility will increase from $23,660 per year ($455 per week) to $35,568 per year ($684 per week). The job duties test did not change.

What does this mean for Mississippi State?

We will need to implement changes by December 16, 2019 in order to be compliant by January 1, 2020. Based on projections, the change will affect 119 employees, with the largest portion being university staff positions where the FLSA designation will change from exempt to non-exempt. This will result in two major changes:

  • Impacted employees will receive either overtime or compensatory time off of 1.5 times the hourly rate for all hours actually worked in excess of 40 hours in the designated workweek.
  • Impacted employees will be required to accurately track all hours worked. The majority of employees will do this through the Semi-Monthly Time Reports; however, other employees will use other approved methods such as a time clock.

Importantly, certain types of positions are exempted from the minimum salary threshold, including most of our academic personnel, including our county extension faculty, physicians, veterinarians, residents, lawyers, and student classifications such as graduate assistants.

On Page 3 of this document are some “Non-Exempt Professional Employee Questions. I would like to add these questions to the current Frequently Asked Questions sub-menu. Please create a new heading after the “FLSA Frequently Asked Questions”, but before the “Supervisors/Scheduling Overtime” section called “Non-Exempt Professional Employee Questions” and list the questions from Page 3 in the same format as the other FAQs, (the questions displayed and the answer expands once the question is clicked or tapped.)

FLSA Training

Human Resources Management will offer several training sessions to walk through the Overtime Final Rule, as well as review what non-exempt employees and supervisors need to know to stay compliant with the FLSA. Please visit the Learning Library to register for a session. Once logged into the Learning Library, mouse over or tap on “My Community” and then click or tap on Learning Library. Click on the “Staying Compliant with FLSA” tile and choose the date you would like to attend and then confirm. Should you have any questions about the sessions or need assistance related to a disability, please contact Darrell Easley .