What, Who, and When
What is the Fair Labor Standards Act (FLSA)?
The FLSA is a labor law that contains information on minimum wage provisions, equal pay, child labor restrictions, recordkeeping, and other federal employment and compensation related issues. A major component of the FLSA is the requirement for employees who are subject to the Act to be compensated for hours worked in excess of 40 in a week.
Which employees are impacted by the FLSA?
All individuals who are considered “employees” are impacted. This includes SHRA, EHRA, faculty, post-doc, graduate student, student worker, and temporary employees.
What is the effective date for the FLSA changes?
December 1, 2016. However, the first time sheet that will reflect work hours under the regulation changes may begin prior to this date.
How will employees know if they are impacted by the changes?
Human Resources will communicate changes to current employee statuses to leadership within each college and division. Employees whose FLSA status changes from exempt to non-exempt will receive written notification from their supervisors or college Human Resources staff. Training will also be provided to employees, supervisors and leadership regarding FLSA and timekeeping.
Work Hours and Time Keeping
What tasks and activities are considered “work?”
Under the FLSA, work includes all time spent performing job-related activities that benefit the employer and that the employer knows or has reason to believe that the employee is performing. Employees are not allowed to volunteer time or work “off the clock”. This includes time spent working at home or working during meal periods. Supervisors must approve any hours to be worked outside of a regular schedule.
How many hours can an employee work?
The FLSA does not set schedules or limit work hours. Schedules are established based on business needs and the FTE of the employee.
How do employees record the hours that they work?
SHRA, EHRA, and Post-Doc employees who are non-exempt must record their hours on the electronic time sheet available at which will be available by mid-November. On the last day that time is reported on the time sheet each month, the employee must submit the time sheet to their supervisor for review and approval. Temporary employees record their time through the electronic KABA time keeping system.
What is the University’s official work week?
The work week for all NC State employees runs from 12:00 am on Saturday to 11:59 pm on Friday.
What number of hours is considered full-time? Part-time?
Full-time employment at NC State is set at 40 hours per week. Part-time employment is defined as any number of hours or FTE (full time equivalent) lower than 40 hours or 1.0 FTE.
Does leave time count as work time?
No. “Hours not worked” and hours covered by paid or unpaid leave are not counted as “hours worked” for pay computation. Supervisors must approve hours worked in excess of 40. Hours worked by an employee without a supervisor’s permission may be grounds for disciplinary action.
Overtime
What is “overtime?”
Overtime is defined under the FLSA as time worked over a “threshold.” For NC State, the threshold is 40 hours per work week. Hours worked in excess of 8 hours in a day is not considered overtime. For individuals who work part-time schedules, overtime is not accrued until they work over 40 hours. Example: Employee regularly is scheduled for 30 hours per week (.75 FTE). The employee works 41 hours. Only 1 hour of overtime is accrued.
Can overtime be compensated with compensatory (comp) time?
Yes. The State of North Carolina requires that candidates for employment with the State be notified that it is policy to give time off in lieu of pay, wherever possible, for hours worked beyond 40 in a work week. This notification occurs during the application process.
At what rate must overtime be paid?
Overtime is paid at time and one-half the “regular hourly rate.” This rate is a complex calculation which includes payment for longevity, shift premiums, and similar pay supplements.
Are there exemptions for any type of employees?
There are special provisions for some police and fire employees. These departments work with Human Resources to establish alternative work schedules and ensure proper payment.
Work Hours and Schedules
Can employees work additional hours without asking and without expecting payment?
No. Employees must not work any hours beyond their required work scheduled without supervisory approval. However, if an employee works, compensation must be provided in compensatory time or overtime pay.
How can supervisors be sure of the time employees are working?
Supervisors must review employee time records and approve them on a bi-weekly or monthly basis depending on the type of employee. Supervisors must also pay attention to what employees are doing. If a supervisor sees an employee working during a lunch period, receives emails during “off” hours, etc., he/she must address this with the employee and let them know that working outside of required hours is prohibited unless approved in advance.
If employees deliberately hide the fact that they are working, disciplinary action will be taken.
Can employees volunteer any time for their employer?
Maybe. There are limited circumstances when an NC State employee can volunteer for university-sponsored events. For questions and additional information, contact Human Resources regarding specific activities.
When can a supervisor change an employee’s schedule?
Supervisors are responsible for setting work hours and schedules based on the business needs of the university and their unit. Employers may change an employee’s hours without advance notice and without their consent to meet work demands and coverage needs although supervisors should work with Human Resources regarding long-term or permanent schedule changes.
Can a supervisor prohibit overtime?
Yes. A supervisor can prohibit employees from working outside of their regular schedule so that they control compensatory time accrual and overtime payouts. Supervisors should already have been approving in advance any extra hours to be worked according to existing policy.
Are employers required to pay extra for weekend or night work?
Extra pay for weekend or “night” shifts is not required by the FLSA. However, at NC State, some positions are required to work regular hours in the evening or on the weekend and they may receive additional hourly pay. Supervisors who have employees with these types of shifts should discuss pay requirements with their HR Representative or Human Resources.
Exemptions from FLSA
Which employees are exempt from FLSA overtime requirements?
An exempt position must meet a “duties test” showing that the primary purpose and functions meet requirements and expectations established for executive, administrative, professional, and computer roles. The duties tests did not change with the recent revisions to the Act.
Are there other exceptions?
Yes. There are exceptions for some other roles such as teachers.
If a position meets a duties test, is the employee automatically exempt?
No. Even if the position duties make the position exempt, the employee must be paid at the federally mandated salary threshold to be exempt from “overtime”.
Can one employee be exempt and another employee doing the same job be non-exempt?
Yes. Because the FLSA status is determined by BOTH the duties test and the salary threshold, two employees in the same job title/classification can have different status.
Does an employee’s job title determine whether or not they are exempt?
No. An employee’s job title alone is insufficient to establish exempt status. Rather, whether an employee qualifies for one or more of the FLSA’s duty test exemptions generally depends on the “primary duty” of the employee performing the job and, depending on the exemption, the employee’s salary. An employee’s primary duty is “the principal, main, major or most important duty that the employee performs.”
What is the salary threshold for exemption?
For most positions, the salary threshold for exemption is $47,476 ($913 per week). For some academic administrative roles, the threshold is $43,984 ($846 per week).
What if I just change my employee’s FTE, will that make them exempt?
FLSA Threshold is set regardless of FTE. This is actually not a change from the current guidelines–but becomes harder to meet because the salary threshold is so much higher. An FTE adjustment with a commensurate salary increase could address the threshold. The key factor is the $913/week factor. If with an FTE change the employee still does not make $913/week, they will be non-exempt.
Who makes the final determination on whether or not a position is exempt?
Human Resources in partnership with college and division leaders make determinations on which positions are exempt under the Act.
Supervisor Accountability
Are supervisors liable if they do not comply with FLSA requirements?
Yes. Non-compliance puts the university at risk for lawsuits, back pay, and the loss of grant opportunities. Supervisors will be held responsible for compliance as well as control of overtime costs.
What can supervisors do to control “overtime” (compensatory time accrual and overtime payout)?
To minimize impact, supervisors should work with their Human Resources departments to consider the following:
- Review the overtime expenditures in your department for the current fiscal year to determine how much is being spent and for which positions.
- Review job descriptions and tasks for positions. Some positions that are exempt may become non-exempt. Consider consolidating exempt-level duties into fewer positions to strengthen key positions in your organization.
- If budget allows and if duties support that a position may be exempt (i.e. appropriately meets the DOL exemption criteria), consider raising the salaries of employees to meet the $913/week ($47,476/year) threshold to keep them in exempt status. Keep in mind that consideration must also be given to salary equity, compression, and subordinate/supervisor salary levels.
- Ensure that employees are accruing compensatory time in the leave system rather than being automatically paid out for overtime hours.
- Consider hiring additional temporary or permanent employees to minimize overtime of current employees who consistently work more than 40 hours per week (if economically feasible). This may also prevent burnout and improve productivity and safety.
- Ensure that budget planning in grant proposals accounts for the additional costs of future overtime for employees.
- Use different work schedules and shifts to meet work demands. For example, change an 8 – 5 schedule to noon to 8:00 pm if regular responsibilities occur after normal business hours.
- Cross-train employees to reduce the dependency on employees who are required to work overtime due to their expertise in specific areas.
- Reduce FTE for positions where 40 hours are not regularly required to meet business needs.
- Use flexible scheduling to accommodate occasional hours outside of the typical scheduled workweek; for example, flex an employee’s schedule to meet weekly work demands, such as 8 – 5 M, 1 – 9 Tuesday, 8 – 5 WTHF.
- Plan for cyclical and seasonal activity. If an employee works excessive hours in the summer but is not as busy in the winter, the employee can accumulate compensatory time in the summer and then take it off in the winter.
