What is FLSA?
The Fair Labor Standards Act (FLSA), first enacted in 1938, establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
- Established tests that must be met in order for an employee to be exempt from overtime pay eligibility.
- Tests/rules for classifying covered employees as "exempt" or "nonexempt"
- Requires overtime compensation to nonexempt employees for all hours over 40 in a workweek.
- Usually 1.5 times regular pay rate – Government agencies can award compensatory time.
Upcoming Changes – Final Rule for Overtime
On September 24, 2019, the US Department of Labor released their final rule on overtime. The final rule focuses primarily on updating the salary and compensation levels needed for executive, administrative, and professional workers to be exempt. See the Department of Labor Resources link below for a summary of the rule.
- Raised minimum salary required for employee to be classified as exempt from overtime.
- Salary minimum increased from $455 weekly ($23,660) to $684 weekly ($35,568).
- NOT pro-rated for part-time.
- Changes effective January 1, 2020.