Human Resource Services

FLSA and Overtime > Compensation > Managers > HRS Home

Fair Labor Standards Act Classification and Overtime

The federal Fair Labor Standards Act (FLSA) determines whether employees are subject to or exempt from minimum wage and overtime provisions. If employees are non-exempt, they must receive overtime pay for working more than 40 hours a week. Whether they're exempt or not, state law allows them to be compensated when they work and use paid leave that totals more than 40 hours in a week.

Check an employee's job title in the university pay plan to find out if he or she is exempt or non-exempt. (EID required)

Overtime and Compensatory Time

Employees work overtime when they work more than their scheduled hours during a workweek.

If they're non-exempt under the FLSA, they're entitled to compensatory (comp) time or time-and-a-half pay for all hours actually worked in excess of 40 in a week. Under state law, whether they're exempt or non-exempt, they may receive straight-time comp time when the hours they worked, including their paid leave, holiday and comp time, totals more than 40 hours. If they're non-exempt, they may receive pay instead of straight-time comp time.

Using and Banking FLSA Comp Time

You must approve any overtime work that will earn employees FLSA or state compensatory time or pay.

With approval from your VP or Dean's portfolio and from the associate vice president for Human Resource Services, your department may allow employees to bank FLSA comp time. This means comp time doesn't have to be used during the pay period when it was earned. If employees have comp time left at the end of the fiscal year, they'll be paid for the time.

Employees can check that they're correctly receiving overtime pay (EID required) by viewing their earnings statement. They must enter the month and year they wish to check.

Comparison of FLSA and State Overtime

Item FLSA Overtime State Overtime
Authority Federal Fair Labor Standards Act (FLSA) State Government Code
Eligibility Non-exempt employees All employees
Definition Work more than 40 hours in a workweek Record more than 40 hours of paid time in a workweek
Compensation Time off or pay at the rate of "time-and-a-half" Time off at the "straight-time" rate; non-exempt employees may receive equivalent pay rather than time off
University policy/practice Grant time off or pay within same calendar month; may request banking 12 months to use or forfeit
Unit policy Recommend unit policy on accrual and use of overtime Recommend unit policy on accrual and use of overtime
Part-time non-exempt Receive overtime compensation if work more than 40 hours in a workweek Receive pay at the regular hourly rate for hours worked in excess of scheduled hours up through 40
Part-time exempt Not eligible for overtime compensation May receive pay at the regular hourly rate for hours worked in excess of scheduled hours up through 40 or receive equivalent state compensatory time