FLSA Toolkit

The Fair Labor Standards Act (FLSA) is federal labor law covering topics such as employee classification, minimum wage, overtime, child labor, and others. The FLSA is a federal law enforced by the Wage and Hour Division of the Department of Labor (DOL).  

On April 23, 2024, the U.S. DOL announced a final rule that increases the standard salary level. The salary threshold increases are in multiple phases: 

  • Effective July 1, 2024 - $43,888 annual / $844 per week
  • Effective January 1, 2025 - $58,656 annual / $1128 per week  
  • Effective July 1, 2027 (and every 3 years thereafter) salary threshold will be updated to reflect the then current wage and earnings data 

At 黑料网, the impact of the July 1, 2024, changes were minimal having only an impact to twelve employees with a total cost of $12,000.  The impact of the January 1, 2025, changes are significant and will directly impact approximately 475 employees, with some receiving increases in pay and others being reclassified from exempt (monthly payroll) to nonexempt (biweekly payroll).  

The below toolkit provides information regarding the methodology used for determining which jobs will remain exempt and which will transition to nonexempt, information for staff that will be reclassified to nonexempt, and information for managers of staff that will transition to nonexempt. 

Manager Training Description Registration link
FLSA Impacts and Managing Nonexempt Employees This session will explain what the FLSA changes are, impacts to KSU employees, and address how to manage employees that will transition from exempt (salaried) to nonexempt (hourly) status.

 

Employee Resources

 Exemption Classification change key talking points for Managers

  • Purpose of exemption status. The Fair Labor Standards Act (FLSA) outlines the criteria for positions to be exempt from overtime pay.  Job descriptions are reviewed periodically or when managers request edits to a job description, to ensure compliance with FLSA guidelines.

  • Definition of Exempt vs. Nonexempt. Per FLSA, all positions are considered nonexempt (hourly/biweekly payroll) and must meet the three-part test to qualify for exempt status (exempt from overtime/salaried/monthly payroll).  At any time that a position no longer meets all three parts, the position is considered nonexempt (hourly/biweekly payroll). If a position鈥檚 key responsibilities and/or pay grade changes and the position meets the three-part test, the position may be updated to exempt (salaried/monthly payroll).
    • Duties 鈥� must be exempt level work
    • Annual Salary 鈥� must meet the annualized salary threshold
    • Weekly Salary 鈥� must meet the weekly salary threshold
    • Positions that are nonexempt (hourly/biweekly payroll):
      • must adhere to timekeeping records requirements (clocking in/out)
      • qualify for overtime (actual worked hours greater than 40 per work week)
      • overtime must be preapproved by manager
      • paid on the biweekly payroll (26 pay periods per calendar year)
    • Positions that are exempt (salaried/monthly payroll):
      • do not qualify for overtime
      • paid on monthly payroll (12 pay period per calendar year)
    • Pay conversion from annual salary to hourly rate:
      • Annual salary is divided by full-time annual hours of 2080 (40 hours/week for 52 weeks per calendar year).
    • Pay conversion from hourly rate to annual salary:
      • The hourly rate is multiplied by full-time annual hours of 2080 (40 hours/week for 52 weeks per calendar year).
      • If a position is less than 40 hours per week, the annual hours are prorated and then the hourly or annual rate is calculated.
    • $52,000 annual salary will convert to nonexempt and is full-time at 40 hours/week.  $52,000/2080 = $25.00 per hour.
    • $52,000 annual salary will convert to nonexempt and is full-time at 35 hours/week.  35 hours/40 hours = 0.875 * 2080 = 1820 hours.  $52,000/1820 = $28.5714
    • $35.75 per hour will convert to exempt and is full-time at 40 hours/week.  $35.75 * 2080 = $74,360.
    • $35.75 per hour will convert to exempt and is full-time at 35 hours/week.  35 hours/40 hours = 0.875 * 2080 = 1820 hours.  $35.75 * 1820 = $65,065.
    • Eligibility will not change unless the employee has a life event that qualifies them for a change in benefits (e.g. marriage, birth or adoption of child, etc.)
    • Benefits and other deductions (excluding taxes and retirement, etc.) will be deducted:
      • Monthly 鈥� deducted once each month in the full amount
      • Biweekly 鈥� prorated each pay period within the month (months with 3 payrolls, the last payroll will not have a deduction)
      • Pay period transition samples will be provided to help each employee determine what their pay checks may look like for the transition period
    • Managers will work with their HR Business Partners to process the changes
    • HR Business Partner will provide employee letter and transition sample document to the manager
    • Manager will communicate changes with employee(s) and provide employee letter and transition sample document
    • Timekeeping training is provided for those transitioning to nonexempt

 Managing Your Hourly Employees 

Supervising hourly employees can present unique challenges. This guide provides best practices of how to effectively manage hourly employees whether they are newly classified hourly employees or had previously been classified as hourly.  

The non-exempt/hourly status of a job is determined by the criteria outlined in the Fair Labor Standards Act (FLSA) for exemption to overtime. The criteria is a three-part test: primary duties of the job, annualized salary threshold, and a weekly salary threshold. If a job meets all three criteria, the job will be classified as exempt from overtime. Any job that doesn鈥檛 meet all three criteria, will be classified as non-exempt and will be eligible for overtime.  

Provisions of the FLSA require that non-exempt employees record hours worked per work week per pay period.  

  • The official workweek for all non-exempt employees is 12:00 a.m. Sunday 鈥� 11:59 p.m. Saturday.  
  • Hours worked in excess of 40 hours per week will be compensated at one and one-half times the hourly rate.  
  • Overtime work must be preapproved by the manager. Nonexempt employees will be paid on the biweekly payroll. 

 

  • As a manager of non-exempt employees, you will need to utilize your department鈥檚 chosen method of recording time and leave for your non-exempt staff.
     
    Provide the employee with 
    • Employee (Time) 鈥� Elapsed View 
    • Employee (Time) 鈥� Pay from Schedule 
    • Employee (Time) 鈥� Web Clock 

    Provide the link to the and review the payroll submission deadlines and pay dates.  

    • Any late or missed time reporting submissions can result in missed or shorted pay checks and will be reflected in the next payroll processing period.  
    • All time reports must be submitted by the employee and approved by the time reporting manager or designee. 
  • There may be instances that require an employee to work beyond their normal schedule to ensure department needs are met. Managers must pre-approve any overtime and have the right to use other alternatives for managing employee鈥檚 time. 
    Flexible scheduling may be used when foreseen circumstances arise that would result in overtime hours being worked by an employee. Managers have a right to use flexible scheduling to minimize the potential for overtime and ensure business needs are met. 

  • Employees sometimes want to stay late to finish a project or work through their lunch break or over the weekend to get ahead of an upcoming deadline. This kind of initiative can be great, but it鈥檚 important to be aware of the FLSA impact. Any time hourly employees are working, including responding to emails or work-related texts, must be paid for doing so. Set clear expectations to ensure that all time is being recorded and maintain an open line of communication regarding any obligations that cannot be completed during their regularly scheduled work time. 

    • Each employee, exempt and nonexempt, is expected to adhere to their scheduled hours and work breaks.  
    • Explain the break schedule and expectations of your department. Nonexempt employees must be fully relieved from all of their duties during their approved breaks. Employees may not forego breaks to accumulate extra time off, make up for tardiness or to leave early.  

  • Another significant problem area for non-exempt employees is their ability to work outside of normal hours, such as accessing networks remotely and using smartphones to communicate with others. These actions are all likely 鈥渨ork鈥� under the FLSA, and this would need to be included in the hours worked by that employee.  


    The law requires that the employee be paid for those working hours, particularly if those hours would cause the employee to work more than 40 hours in the workweek. If a supervisor doesn鈥檛 want to pay for this time, the work must not be performed. This could involve prohibiting remote access or smartphone usage limiting the use to normal working hours and/or crafting working hours to accommodate these tasks as part of the employee鈥檚 鈥渘ormal鈥� schedule.  

  • As a general rule, meetings and training sessions must be included in working hours. Only when the meeting meets the following four criteria can it be excluded from work hours:  

    1. Attendance is outside of the employee鈥檚 regular working hours
    2. Attendance is voluntary
    3. The course, lecture or meeting is not directly related to the employee鈥檚 job
    4. The employee does not perform any productive work during such attendance 


    Given the standards, most conferences attended by non-exempt employees must be included in work hours. 鈥淲orking鈥� lunches or similar lunch meetings typically do not meet the criteria and must be included in work hours. Only when all four of the above criteria are met can a meeting be excluded from working hours. 

  • As the employer, KSU鈥檚 obligation to manage non-exempt employees to ensure that only the work desired is performed. Off the clock work, whether it is voluntary or involuntary, cannot be permitted. Ensuring all work is properly compensated requires vigilance by the manager.  


    The precise contours of how a manager manages working hours for newly reclassified staff is dependent on the specific facts and circumstances of the situation. In some cases, it may be possible to prevent remote network access or smartphone use by the employee; in others, it may be necessary to schedule specific blocks of time for employees to work remotely or use their cellphone, and to make those blocks part of the expected work hours. In others, the manager may decide to allow flexible scheduling to accommodate the hours worked or deal with the ramifications of the extra hours through overtime pay. 


    There is no one-size-fits-all solution and managers should consult with their HR Business Partner to ensure they are addressing these issues as best as they can.  

Travel Time Compensation Guidelines for Non-exempt employees

Overview 

For non-exempt employees at 黑料网, understanding travel time compensation rules is essential to ensure compliance with the Fair Labor Standards Act (FLSA). These guidelines are tailored for non-exempt employees who may travel for work on and off campus and attend meetings or conferences both at the school and other locations. 

 

  • Two key principles guide the rules on travel time compensation under the FLSA: 
     
    1. Compensable Work-Related Tasks: 
    • All time spent performing work-related tasks is compensable, regardless of the day, time, or location. Per 29 C.F.R. 搂 785.41: "Any work which an employee is required to perform while traveling must, of course, be counted as hours worked." 
     
    2. Non-Compensable Commute: 
    • Time spent commuting from home to work and back is not considered work time and is not compensable, as specified in the Portal-to-Portal Act amendments to the FLSA (29 U.S.C. 搂 254(a)(1)) and 29 C.F.R. 搂 785.35: "Normal travel from home to work is not worktime." 
  • Regular Commute: 
    The normal commute from home to the first work location and back home at the end of the workday is not compensable, whether the employee works at a fixed location or various job locations. 
     
    Mid-Day Travel: 
    Travel time during the workday between job sites is compensable. For example, travel from the office to a meeting or venue during the workday is paid time. 
     
    Continuous Workday: 
    All time between the start of the first principal activity and the end of the last principal activity must be paid. This includes travel between job sites during the workday. 
     
    Multiple Worksites: 
    If a non-exempt employee reports to different worksites each morning, the commute from home to the first location and from the last location back home is not compensable. 
     
    Work Performed at Home: 
    Performing work-related tasks at home before commuting to the office does not make the commute compensable. The time spent on those tasks is paid, but the commute itself remains unpaid. 
     
    Special One-Day Assignments: 
    For same-day travel to another city without an overnight stay, travel time to and from the destination, minus the normal commute time, is compensable. 
     
    Overnight Travel: 
    For overnight travel, time spent traveling during normal working hours is paid, regardless of whether it occurs on regular workdays or non-working days. 
     
    Hotel to Worksite Travel: 
    Travel from the hotel to the worksite and back is not compensable. Time spent at the hotel is not paid unless work is performed. 
     
    Crossing Time Zones: 
    Employers should use the time zone of the departure point to determine whether travel falls within normal working hours. 
     
    Driving as Part of the Job: 
    A Non-exempt employee who drive as part of their job duties are considered to be working during that travel time, except during meal periods or sleep periods in provided facilities/hotels. 
  • For non-exempt employee with remote or flexible work arrangements: 
    • Clearly define in writing that both the home and the office are regular worksites.
    • Specify that commuting to the office is not part of their duties and will not be compensated.
    • Address any scenarios where the commute might involve an overnight stay or irregular reporting requirements. 
  • If travel time is compensable: 
    • Employers must pay non-exempt employees for the travel time. 
    • Implement a process to track travel time accurately. 
  • If a significant portion of hours is spent traveling, it could reduce the time available on other job responsibilities. Managing this balance is important to ensure travel time and job expectations are met effectively. 
    • Travel time from 8 AM to 5 PM is compensable and included in the total hours for the week. 
    • The workweek is 12:00 AM Sunday 鈥� 11:59 PM Saturday 
  • Scenario 1: Traveling to a conference  
    • If an employee鈥檚 regular working hours are 8 AM to 5 PM and they travel to a conference from 10 AM to 1 PM, this travel time is compensable. 
    • If the travel occurs from 7 PM to 10 PM, it is not compensable unless the employee is performing work during that time or is the driver. 
     
    Scenario 2: Working During Travel 
    • If an employee reviews and responds to emails or conducts any work while traveling as a passenger, this time is compensable regardless of the time of day. 
     
    Scenario 3: Weekend Travel 
    • If an employee normally works Monday to Friday, 9 AM to 5 PM, and travels on a Saturday from 9 AM to 5 PM, this travel time is compensable. 

FLSA FAQs

GENERAL OVERVIEW 

  • The is federal law under the Department of Labor that sets standards for minimum wage, overtime pay, recordkeeping, and child labor.  

  • According to Department of Labor regulations, to qualify for exemption from overtime under the FLSA, an employee鈥檚 specific job duties and salary must meet all the requirements: 

    • The primary duty of the job must meet a least one of the FLSA鈥檚 duties tests
    • Must be paid on a salary basis at not less than the established annualized salary
    • Must be paid on a salary basis at not less than the established weekly salary 
  • General information, including the new salary test change, can be found on the website.  
  • The federal effective date of this change is January 1, 2025. 
  • At 黑料网, the determination is based on the Salary Structure. Any exempt job that is a Pay Grade of K07 or K08 will convert to nonexempt. Jobs that are a Pay Grade of K09 or K10 will have established salary minimums to which current staff will be paid effective January 1, 2025, and will be the hiring minimums moving forward.  
  • No. The classification is a legal designation that cannot be waived. The designation of exempt (salaried/monthly payroll) or non-exempt (hourly/biweekly payroll) does not impact the type or importance of an employee鈥檚 work.  
  • No, the basis for FLSA exemption is the pay grade alignment of the University-wide job and not just one position. If the job is classified as nonexempt, all staff in that job will convert to non-exempt even if their pay is over the new threshold. 
  • Yes. If the employee meets the salary basis, salary threshold, and job duties criteria, the employee can be considered exempt under the FLSA, regardless of full-time equivalent status (i.e., number of hours worked per week). 

  • Take your yearly salary and divide it by 2080.

    For example: 
    Annual Salary:  $50,000/2080 = $24.0384 
    The hourly rate will be:  $24.04 

  • Overtime pay is only for hours worked over the 40 hours within a workweek.  Any hours over 40 will be paid at 1.5 times the hourly rate. 
  • You must have prior approval from your supervisor. Any time worked must be paid for and includes reviewing and responding to work e-mails or working weekends if you are not scheduled to do so.
  • You must have your supervisor鈥檚 approval prior to working any additional hours. 

MANAGING NON-EXEMPT EMPLOYEES 

  • No. It is the intention that the actual job duties an employee performs will not change as a result of changing from exempt to non-exempt. Managers are expected to communicate with employees regarding work performed and may discuss ways in which an employee鈥檚 workload can be balanced more efficiently to comply with changes to the FLSA. 
  • If employees are asked to work overtime and not record it, they should contact their HR Business Partner. It is inappropriate, and illegal, for managers or departments to ask non-exempt employees to work without recording or compensating employee for any time worked. Managers and departments can require employees to not work over a certain number of hours; however, if hours are worked, they must be recorded and must be paid appropriately. 
  • Yes. Managers have the responsibility to ensure business continuity of the department and minimize overtime. Managers may use flexible scheduling to meet those needs. Managers must provide employees with the scheduling expectations. 
  • Flexible scheduling refers to a work arrangement that allows an employee to have a modified work schedule in an effort to minimize overtime. This modified work schedule may be continuous, sporadic (at the beginning or ending of each semester), or as needed (for FMLA coverage, working a special event, etc.) 
     
    Examples: 
    • working 4 days a week for 10 hours per day 
    • working 10:00AM to 7:00PM instead of the usual 8:00AM-5:00PM 
    • working late on Wednesday and arriving late on Thursday  
  • Per the , nonexempt employees can teach but must be compensated based on their overtime rate instead of the part-time faculty member rate and must comply with the FLSA overtime standards. Due to the fiscal impact to the department, non-exempt employees鈥� teaching will be limited and based on critical needs.  

OVERTIME  

  • Overtime pay begins when a non-exempt employee works more than 40 hours in the work week. 
  • Overtime pay is calculated at one and a half times your regular rate of pay. Overtime pay is applicable for hours worked in excess of 40 hours in a workweek. 
  • The workweek begins 12:00 AM Sunday and ends at 11:59 PM Saturday 
  • Overtime is based on hours worked over 40 hours in a workweek. Each workweek stands alone; averaging hours worked over two workweeks is not permitted by the FLSA. 
  • Overtime work must be pre-approved by the employee鈥檚 manager. The manager has the right to use flexible scheduling to minimize the overtime.  
  • No. KSU no longer allows comp-time. All hours worked that qualify for overtime will be paid at a rate of one and one-half hours for each hour of overtime worked.