Fair Labor Standards Act Updates & Resources

This Site Is Intended To Provide Fair Labor Standards Act (FLSA) Related Tools, Job Aids, And Resources For Employees, Supervisors, And HR Professionals, But Your College/MAU HR Department Is Your Primary Contact And Source Of Information On This Topic.

On April 23, 2024, the Department of Labors announced changes to the FLSA which impacts overtime eligibility. Illinois Human Resources (IHR) alongside campus partners and University System Offices have been coordinating efforts and communicating updates to Senior Leadership and the HR community the past seven months in anticipation of this ruling to best ensure a smooth implementation process across all campuses.

Revisions include increases to the standard salary level and a mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data.

For additional information on this topic, please click on the following link: https://www.dol.gov/agencies/whd/overtime/rulemaking

Resources

Employee

Salaried Non-Exempt Time Reporting Guide Civil Service

Salaried Non-Exempt Time Reporting Guide Academic Professional

Salaried Non-Exempt Time Reporting Guide Administrative Graduate Assistant

 

FLSA Employee Information Session – Video

 

Frequently Asked Questions

Q: Does the increase to the threshold mean that if I’m salaried (exempt from overtime) and my salary is below that amount, I’ll receive a raise?

A: Not necessarily. Employers, including the university, have the option to comply with the regulation by either raising the employee’s salary to remain overtime-exempt or changing the employee’s status to non-exempt (eligible for overtime). College/MAU staff in collaboration with Illinois HR will consider each position to determine the best option.

 

Q: Is there a campus-wide expectation of what will happen to employees based on their current part-time or full-time status?

A: No. Each unit’s operational and funding situation is different. The unit has input on the compliance option chosen for each employee based on the unit’s circumstances.

 

Q: When can employees expect to hear more?

A: Affected employees will receive individual communication in advance of the July 1, 2024 regulation effective date.

Supervisor

Supervisor Consideration Guide
Purpose:
This document is intended to be a guide for units and supervisors to utilize consistent criteria for all job-related factors that impact the employee’s status under the Fair Labor Standards Act (FLSA). This assessment should help units determine whether to raise an employee’s salary to meet the new FLSA salary threshold OR to move the employee to a salaried non-exempt position that requires tracking of time and pay for overtime hours.

FLSA Supervisor Fact Sheet
Purpose: 
This guidance is to help supervisors understand what’s changing for an employee who transitions from salaried, overtime non-exempt status in the context of the proposed changes to the Fair Labor Standards Act (FLSA) regulations.

FLSA and Travel Time for Non-exempt Staff Employees
Purpose: This document is to assist supervisors and employees in understanding what time to report as work time on payroll timesheets in common situations where an employee travels as part of their job duties.

FLSA and Remote Work Considerations for Salaried Non-Exempt Staff
Purpose:This is guidance to help salaried non-exempt employees understand how to report time worked when working remotely and help supervisors set clear expectations with their staff as well as what choices might incur overtime pay to manage their units’ s budget appropriately and responsibly.

FLSA Supervisor Information Session – Video

FLSA Supervisor Information – Powerpoint

Coming Soon:

• VSL FAQs/job aids

HR Professional

Compensation Policies for Salaried Non-Exempt Employees

Salaried Non-Exempt HRFE Setup Job Aid

Frequently Asked Questions

Q: How should part-time salaried, non-exempt employees report a holiday on their timesheet?

A: Employees should report holiday pay with the FLSA-Leave Hours-Tracking Only (OPU) earn code because this category includes all paid leave, whether or not it uses a benefit balance (like vacation or sick leave). Holiday pay is based on one-fifth of the employee’s weekly salary regardless of the number of hours an employee was scheduled to work on the holiday. Leave time for salaried non-exempt employees is reported in whole hours or whole days, so this amount should be rounded to the nearest hour.

Q: How should salaried, non-exempt employees report time worked on a holiday on their timesheet?

A: In the event that work is required on a university holiday, eligible employees, including part-time employees, will be paid time and one-half their regular hourly rate of pay for each hour worked. Pay for work on a holiday is in addition to any holiday pay an employee may receive. Employees should report both holiday pay with the FLSA-Leave Hours-Tracking Only (OPU) earn code and their work hours using FLSA-Time & Half Overtime (OPS). (Noted for reference: For civil service employees, the policy for holiday pay is University Policy & Rules, Policy 9.)

General FLSA Resources

Coming Soon:

• DOL Guidance Information on final published rule/FLSA regulation

• Consolidated FAQ document

FLSA has a three-part test for overtime pay exemption:
1. Duties test – no change proposed.
2. Salary basis test – no change proposed.
3. Minimum salary level (set by weekly earnings) – change proposed.

Earlier this year, IHR and your unit identified and confirmed the exemption status of potentially impacted employees within your unit. These exemptions included “Standard,” “Academic Administrative,” and “Teaching.” It is important to again note these exemptions are specific to FLSA and have no bearing on an employee’s exemption status as governed by State Universities Civil Service System (SUCSS). Additionally,  some jobs, such as faculty, are exempt from FLSA’s overtime provisions and not subject to the minimum salary test.

Given that there is no proposed change to the 1. Duties or 2. Salary basis test, we anticipate no change on FLSA Status based on either of these tests, but a change could occur in overtime exemption status if an impacted employee’s salary is below the new threshold and if the DOL finalizes its proposed changes, they withstand anticipated challenges, and implementation of the change is required.

CUPA-HR FLSA Overtime News and Resources

Wage and Hour Division:

 Fact Sheet #17S: Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA) | U.S. Department of Labor (dol.gov)