Fair Labor Standards Act (FLSA)

A federal judge has suspended the Department of Labor’s new federal overtime rule. The rule was scheduled to go into effect on December 1, 2016. Please know that UHR is aware of this ruling and we are reviewing all updates for addressing compliance.

What is the FLSA?

Established in 1938, and enforced by the U.S. Department of Labor, the Fair Labor Standards Act (FLSA) establishes work standards affecting employees in the private sector and in Federal, State, and local governments, specifically minimum wage rates, payroll and time recordkeeping, youth employment and overtime pay rules.

Recently, the Department of Labor released new guidelines for positions currently classified as exempt. As of Dec. 1, 2016, these positions must earn a higher salary if they meet certain tests that define what is considered exempt work. Whereas the current minimum annual salary is $23,660, the new threshold is $47,476.

Below you will find more information about FLSA generally and these new rules specifically.

Exemption under FLSA

If your position is classified as non-exempt, you are protected by the FLSA and guaranteed overtime pay for hours worked over 40 in a work week. You must track your hours worked and be compensated with pay or compensatory leave for any overtime hours. For more information on compensatory leave, see UVA’s Leave Policies.

If your position is classified as exempt, you are not protected by the FLSA and not eligible for overtime pay.

Exempt Non-Exempt
  • Employees in these types of jobs are not subject to minimum wage, overtime, and time-keeping requirements of the Act
  • Exempt positions have executive, administrative, or professional responsibilities requiring significant professional and advanced knowledge in a particular area; a primary duty of management, regularly exercising discretion and judgement, customarily and regularly direct the work of two or more other employees; and have authority to hire or fire or may make suggestions and status for other employees
  • Employees in these types of jobs are subject to minimum wage, overtime, and time-keeping requirements of the act
  • Positions are entitled to minimum wage provision, overtime pay, and must (by law) maintain accurate records of the hours they work in a day

* Employees may check their timesheet if they are unsure of their current status or may contact the HR Service Center at 434.982.0123

So What Has Changed?

Current New
(Effective Dec 1, 2016)
$455 a week or $23,660 a year Base Salary Level $913 a week or $47,476 a year
Threshold set and frozen Beginning January 2020, the salary threshold will be updated every 3 years
Salary test set at $100,000 Highly Compensated Worker Test Salary test set at $134,004
Bonus was not included in threshold calculation Special Pay Allows up to 10% of minimum salary to be met by non-discretionary bonuses, incentive pay, or commissions if made quarterly

The University has reviewed every position that is currently classified as exempt earning under the new threshold to see if it meets the exemption test. Employees who will see a change in status will be notified by the HR professional in their school or unit. You can see any position’s exemption classification in the UVA Job Structure.

The University’s FLSA Implementation Timeline is a helpful resource, as is the FLSA 101 Presentation presented to HR professionals across Grounds.

Employees: What Does Converting to Non-Exempt Mean for Me?

Titles and duties will not change for employees who will be converted to non-exempt. They will be eligible for overtime starting Nov. 28, 2016. These employees will need to track and record their hours worked in the Integrated Self-Service. Supervisors need to approve overtime in advance. Questions? Visit the FLSA Employee FAQ.

Managers: Reminders for Managing Non-Exempt Employees

  • New law does not impact non-exempt time management
  • Must maintain accurate time records, regardless of hours worked
  • Ensure work is authorized and recorded, including time off the clock, meal and rest breaks, travel, and working remotely
  • Must pay overtime (time and one-half) for hours over 40 each week
  • Never allow employees to leave overtime hours unreported

Get help by reviewing:

Helpful Resources

Where can I find additional information about the FLSA? The Department of Labor is the authority on the Fair Labor Standards Act (FLSA).

Questions? Please contact the HR Service Team at AskHR@virginia.edu