What is the Fair Labor Standards Act (FLSA)?
The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. In the case of a State agency such as UHD, compensatory time may be substituted by the employer for overtime. Overtime or compensatory time cannot be waived, even if the employee wishes to volunteer his or her time.
Is anyone exempt from the FLSA?
The FLSA applies to all employees except those identified as "Exempt" under the law. The FLSA exempts from minimum wage and overtime requirements employees who are bona fide executive, administrative or professional employees. See 29 U.S.C. 213(a)(1); 29 CFR Part 541. Employees who do not fall into these categories are considered "Non-Exempt".
What are some examples of exempt employees?
Executives, learned professionals (lawyers, doctors, engineers), faculty, computer programmers and analysts.
What is FLSA exempt versus non-exempt status?
Employees' eligibility for overtime pay is determined by regulations under the FLSA. Several duties tests and salary threshold requirements define whether a position is classified as "exempt" or "non-exempt," and eligibility to receive overtime. Employees in non-exempt positions are required to report all hours worked and must be paid for overtime worked or be given compensatory time. . Non-exempt employees are paid on a biweekly basis while exempt employees are paid monthly.
Will the status of non-exempt employee who are already covered by the FLSA change?
No, they will not be affected by the new rule.
How do I calculate my hourly rate?
Annual salary/(Number of hours scheduled to work per week x 52 weeks) = Hourly Rate
For example, if an employee's annual salary is $32,000 and the employee is full-time (40 hours/week), then his/her hourly rate is $15.39.
$32000/ (52X40) = $15.39 (hourly rate)
When are non-exempt employees paid?
Non-exempt employees are paid every two weeks. The FY20 payroll calendar may be found at UHS Payroll Calendar.
Where can I get more information on overtime and compensatory time?
Please click on UHS Overtime Policy for the University of Houston System's overtime and compensatory time policy and procedures.
Does exemption status affect benefits?
No, exemption of overtime does not affect benefits.
How and when will impacted employees be notified?
If your job is changing from exempt to non-exempt or if there is an adjustment in your salary, you will be notified by your supervisor. The actual date of this notification is still to be determined as ESO is still working with your respective leaders to identify impacted positions. The target date is November. Training will be available to affected employees and managers on time reporting.