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|