FLSA FAQs
This change poses unique challenges for colleges and universities because these institutions require a unique breadth of different types of positions which may not neatly align with the definitions outlined in the framework of the FLSA and accompanying regulations.
Organizational and Cultural Challenges: Exempt employees converted to Non-Exempt will have to track work time. This may be perceived as a step back in career progression. However, it's crucial to recognize that this adjustment does not diminish the value of your work or the significance of your contributions to NMSU. The reclassification from exempt to non-exempt status is mandated by Department of Labor regulations, ensuring compliance and providing you with the wage and hour protections guaranteed by legislation.
Non-exempt employees are covered by the Fair Labor Standards Act and are entitled to overtime pay for hours worked in excess of 40 in a workweek at a rate of at least one and one-half times their regular rate of pay.
Because of their duties, responsibilities, salary basis and salary level, exempt employees are not covered by the Fair Labor Standards Act and are not entitled to receive overtime pay for hours worked in excess of 40 in a workweek. “Exempt” is not a title, but a legal classification pertaining to compensation.
The hourly rate of pay for full-time employees was converted using the following formula:
Full time annual salary effective 7/1/2024, divided by 24 (or 18 for 9-month staff), divided by 86.67. For example, a full-time employee with an annual salary of $43,000 would have a converted hourly rate of $20.67.
Most employees covered by the Fair Labor Standards Act (“FLSA”) must be paid at least one and one-half times their regular rate of pay for any hours they work beyond 40 in a workweek. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.
For additional information see the U.S. DOL Fact Sheet#22: Hours Worked Under the Fair Labor Standards Act (FLSA)
Transitioning an employee from exempt to non-exempt status requires careful planning and communication to ensure a smooth transition. Here are some steps you can take as a manager to prepare for this change.
- Communicate Effectively: Clearly communicate with the employee about the change in their classification from exempt to non-exempt status. Explain the reasons for the change, such as compliance with labor regulations, and address any concerns or questions they may have.
- Provide Training: Offer training on timekeeping procedures and compliance with overtime regulations. Ensure that the employee understands how to accurately track their work hours, including any overtime hours worked.
- Set Expectations: Clarify expectations regarding work hours, breaks, and overtime eligibility. Discuss any changes to the employee's schedule or workload that may result from the transition to non-exempt status.
- Monitor Work Hours: Implement systems to track the employee's work hours accurately. Monitor their work hours to ensure compliance with overtime regulations and address any issues that may arise.
- Address Career Growth: Reassure the employee that the change in classification does not reflect negatively on their career progression. Discuss opportunities for growth and development within their role despite the change in status.
- Provide Support: Offer support and guidance to help the employee adjust to their new classification. Be available to answer questions and address any concerns they may have throughout the transition process.
By taking these steps, you can help ensure a smooth transition for your employees as they move from exempt to non-exempt status.
Comp time is earned at the same rate as overtime, which is at a half-time rate. There are restrictions on the accrual and utilization of comp time. Please refer to Administrative Rules and Procedures of New Mexico State University ARP (Administrative Rules and Procedures) 7.20 Staff Overtime Pay or Comp Time and AFSCME Agreement Article 28 Hours of Work.
For example, a nonexempt employee who has elected comp time works 45 hours in a work week. The nonexempt employee will be compensated for 45 hours at the regular hourly rate and accrue 2 ½ hours of comp time.
- NMSU HR June 2024 Presentation
- Administrative Rules and Procedures of NMSU – Rule 7.20 Staff Overtime Pay or Comp Time
- Department of Labor – Final Rule: Overtime Update
- Department of Labor – Final Rule: Restoring and Extending Overtime Protections
- Department of Labor – Overtime Pay
- Department of Labor – Fact Sheet#17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA)
- Department of Labor – Fact Sheet #17S: Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA)
FLSA Links
Fair Labor Standards Act (FLSA) Open Forum
Date: Wednesday 6/5/24
Time: 12:00-2:00 PM
Location: Zoom Date: Tuesday, 6/6/24
Time: 12:00-2:00 pm
Location: Zoom Date: Friday, 6/7/24
Time: 12:00-2:00 pm
Location: Zoom Date: Monday, 6/10/24
Time: 12:00-2:00 pm
Location: Zoom Date: Tuesday, 6/11/24
Time: 12:00-2:00 pm
Location: Zoom Date: Wednesday, 6/12/24
Time: 12:00-2:00 pm
Location: Zoom