Guide to the Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

The Wage and Hour Division (Wage-Hour) administers and enforces FLSA with respect to state and local government employment.  The NDSU Office of Human Resources (231-8961) can advise departments on how to administer FLSA correctly for their non-exempt staff.

Who is Covered?
The FLSA went into effect for most private sector employers in 1938.  Higher education, including NDSU, was originally covered by the FLSA in 1961.  Case law called that coverage into question, until 1985.  At that time, all public sector employers became covered by the FLSA, regardless of whether or not they were higher education institutions.  In 1987, special provisions concerning "comp time" for public sector employees were enacted.

Basic Wage Standards
Covered non-exempt workers are entitled to a minimum wage of not less than $5.15 an hour, effective September 1, 1997.  Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweek.
Employer-Furnished Facilities: The reasonable cost of fair value of board,lodging, or other facilities customarily furnished by the employer for the employee's benefit may be considered part of wages.

Wages required by FLSA are due on the regular payday for the pay period covered.  Deductions made from wages for such items as cash or merchandise shortages, uniforms and tools, are not legal to the extent that they reduce the wages of employees below the minimum rate required by FLSA or reduce the amount of overtime pay due under FLSA.
 

Exemptions
Some employees are exempt from the overtime pay provisions or both the minimum wage and overtime pay provisions, such as 1) executive, 2) administrative, 3) professional employees (including teachers and academic administrative personnel in elementary and secondary schools), 4) outside sales employees, and 5) employees in certain computer-related occupations (as defined in Department of Labor regulations).

Exemptions are narrowly defined under FLSA; an employer should be careful.  The law assumes that all positions are nonexempt; the burden to prove exemption falls upon the employer.

At NDSU, most of these positions are considered to be exempt from (not covered) by the FLSA:
            1000 band (executive/administrative),
            2000 band (academic staff) and
            Some 3000 band (professional)
Most of these positions are considered to be nonexempt from (covered) by the FLSA:
            Some 3000 band (professional),
            4000 band (technical and paraprofessional),
            5000 band (office support),
            6000 band (crafts/trades) and
            7000 band (services)

Managing "Hours Worked" on Non-Exempt Employees

Child Labor Provisions
The FLSA  child labor provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs/conditions detrimental to their health or well-being.

Permissible jobs and hours of work, by age, are as follows:
(1) Youths 18 years or older may perform any job, whether hazardous or not, for unlimited hours;
(2) Youths 16 and 17 years old may perform any non hazardous job, for unlimited hours.

At NDSU, an employee must be at least 16 years of age to be hired into a temporary position, and at least 18 years of age to be hired into a regular position.
 

Terms Used in FLSA
Workweek -- A workweek is a period of 168 hours during seven consecutive 24-hour periods.  It may begin on any day of the week and at any hour of the day established by the employer (set by SBHE policy as 12:01 a.m. Sunday through 12 midnight Saturday)At NDSU, for purposes of minimum wage and overtime payment each workweek stands alone; there can be no averaging of two or more workweeks.  Employee coverage, compliance with wage payment requirements, and the application of most exemptions are determined on a workweek basis.

 Hours Worked  -- Covered employees must be paid for all hours worked in a workweek.  In general, "hours worked" includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work.  Also included is any additional time the employee is allowed (i.e., suffered or permitted) to work.
 

Computing Overtime Pay
Overtime must be paid at a rate of at least one and one-half times the employee's  regular rate of pay  for each hour worked in a workweek in excess of a 40 hour workweek.  If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due.


     

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    Last Updated: Tuesday, 22-May-2007 10:40:33 CDT
    Published by North Dakota State University