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The Fair Labor Standards Act (FLSA) is a federal law administered by the Department of Labor. It provides a range of protections to employees, including provisions that ensure workers receive additional compensation when required to work long hours. Specifically, the FLSA governs overtime provisions, which ensure employees receive pay at a rate no less than time-and-a-half for all time worked in excess of 40 hours in a work week.
However, the FLSA recognizes that some positions warrant exemption from the overtime provisions outlined under the law. These positions are referred to as “exempt” and do not receive overtime pay. In order for a position to be classified as exempt, it must meet set criteria related to both duties and pay. Watch the video below to learn more.
Until December 30, 2019, the salary threshold for exemption status was $23,660 per year ($455 per week). On September 24, 2019, the Department of Labor announced a final ruling to increase the salary threshold to $35,568 per year ($684 per week), effective January 1, 2020.
In response, the University implemented the following changes:
The University carefully evaluated all pay dates available prior to the DOL deadline and identified November 23rd as the least impactful to employees. This date allows for the greatest take-home pay in the final exempt paycheck for those moving into non-exempt status. Additionally, this date ensures the University is fully compliant by the January 1 deadline.
The exemption status does not diminish the professional nature and significance of any job at the University. It is simply a legal designation for pay purposes. The University considers many non-exempt positions to be professional in nature and emphasizes appropriate job classifications, pay, and professional development for all employees.
No. The actual job duties an employee performs will not change as a direct result of the updated regulations. Supervisors are expected to communicate with employees regarding work performed and may discuss ways in which an employee's workload can be balanced more efficiently to comply with the change in the employee’s exemption status.
There are a variety of options that supervisors can consider to improve processes and increase efficiencies to minimize overtime costs. Employees are encouraged to suggest opportunities for more efficient processes in their work environment. Supervisors are encouraged to review workflows, processes, and assignments on a continual basis. Supervisors may reach out to their HR Consultant for further assistance.
Yes. Non-exempt employees must be paid for all time worked, in accordance with the law. Overtime should be authorized in advance by the supervisor. Employees who do not obtain supervisory approval for overtime may be subject to disciplinary action. Refer to UAP 3305: Overtime for information.
This activity is considered worked time, and must be recorded and paid. Depending on the number of hours the employee has worked that week, this may also trigger overtime pay for any hours over 40 in the workweek, regardless of whether the supervisor approved the overtime or not. Employees must be paid for time worked and supervisors need to be clear about expectations for working overtime, reminding employees that checking email at home is considered working.
Yes. Refer to UAP 3300: Paid Time for what is considered paid and non-paid time for non-exempt employees while traveling.
No. Non-exempt employees must be compensated for all hours worked. Even if an employee voluntarily offers to work off-the-clock or to waive overtime pay, the University is obligated to pay the employee for all time worked and to pay at a rate of time-and-a-half for time worked in excess of 40 in a workweek.
A supervisor may adjust an employee’s schedule within the same work week (Monday-Friday) before overtime has been worked if business need indicates a need to adjust a standard work schedule. However, the supervisor may not adjust an employee’s schedule to avoid paying overtime.
The University is obligated by law to pay non-exempt employees for all overtime incurred, regardless of funding source. If a position is funded through an outside entity that does not allow for overtime pay, the University must identify alternative funding sources in order to pay the employee appropriately.
Compensatory time off (“comp time”) may be offered in lieu of overtime pay to non-exempt employees as long as there is a written agreement in advance between the supervisor and the employee. Refer to UAP 3310: Compensatory Time for information on this process. Note that supervisors cannot require an employee to accept comp time in lieu of overtime.
Employees who work eight (8) hours or more in the workday should have a meal break of either one (1) hour or a (1/2) hour unpaid meal break. For more information on meal breaks and rest periods, refer to UAP 3300 Paid Time. Skipping lunch should be the exception, not the norm, and must be approved in advance by your supervisor.
Although the FLSA does not require employers to provide breaks or rest periods for employees, UNM supervisors may, at their discretion, allow employees to take a 15-minute rest period during each half day worked. Breaks may not be taken at the beginning or the end of the work period or appended to the meal break.
The new regulations do not affect positions that are already non-exempt in any way. All supervisors and employees should use this opportunity to familiarize themselves with current UNM overtime regulations and procedures.
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