FAIR LABOR STANDARDS ACT

Modified regulations have been suspended due to court ruling.

The Department of Labor (DOL), on May 18, 2016, issued final regulations that modified current FLSA regulations; however, implementation of those modified regulations were suspended due to the issuance of a preliminary injunction by a U.S. District Court judge. See this memo issued to Deans, Directors, Chairs, Human Resources Representatives and Fiscal Officers for details regarding MSU's response to the injunction. The judge’s ruling became final on August 31, 2017. The current administration’s DOL has indicated it is considering modifying FLSA regulations, but will likely use a lower salary threshold if regulations are proposed. Please continue to check this site; information on this site will be updated regularly.

Background

The Fair Labor Standards Act (FLSA) is a federal law, passed in 1938, that establishes certain labor related standards (including overtime pay, record keeping, and minimum wage) for employees in the private sector and in Federal, State, and local governments.  The DOL issues and enforces FLSA regulations.  Employees covered by the act are considered non-exempt and are eligible to receive the statutory minimum wage and time-and-one-half overtime pay for hours worked in excess of 40 in any defined work week. Employees not covered by the act are exempt and do not earn overtime pay.  An employee is classified as exempt under what are referred to as the white collar exemptions, only if the employee meets both of the following tests:

Salary Level Test – the employee makes above a certain salary level, currently $23,660 annually; and
Duties test – duties consist of certain executive, administrative or professional functions.
Exceptions to the salary level test are provided for employees who fall into specific categories – primarily teachers, doctors, lawyers, academic administrative personnel and outside sales. Those categories of employees do not need to meet the salary level.

As noted, exempt employees are not eligible to earn overtime under the FLSA.  Some of MSU's collective bargaining agreements, however, do provide the ability to earn overtime for certain employees covered by the agreement.  These employees include:

  • APA levels 11 and below
  • APSA levels 11 and below
  • Non-Union employees levels 11 and below whose conditions of employment follow the APA/APSA contract

For additional information, please refer to the collective bargaining agreements or the overtime and time tracking chart.