IMPORTANT: The Department of Labor (DOL) has proposed an increase to the Minimum Salary Level threshold required for FLSA exemption. University Human Resources will share additional information with employees once it is released by the DOL.
The Fair Labor Standards Act, or FLSA, establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
FLSA Requirements
The FLSA requires the following for employees whose jobs are designated as nonexempt:
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They must keep accurate records of time worked.
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They must be paid at least minimum wage for all hours worked.
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They must receive an overtime premium for all hours worked in excess of 40 in a workweek.
The information that is published on this page applies to employees of Auburn and AUM whose jobs are currently designated as nonexempt.
Email univhr@auburn.edu if you have additional questions about the FLSA.
Important Links
History
The FLSA of 1938 originated in President Franklin Roosevelt’s New Deal. It was a landmark piece of legislation that had a significant impact on the labor movement in the United States.
The FLSA set nationwide standards for employees of organizations engaged in interstate commerce, operations of a certain size, and public agencies. Still active today, it affects millions of full and part time workers in the private sector and the federal, state, and local governments.
Information taken from Encyclopedia.com.
Exempt or Nonexempt
There are two exemption tests that determine a job’s FLSA designation:
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“Minimum Salary Level” – Employees who earn $35,568 per year or less (the MSL threshold) have their positions designated as nonexempt. They must keep accurate records of hours worked and be paid overtime premium (1 1/2 times their hourly rate of pay) for all hours worked in excess of 40 in the designated workweek.
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“Duties Test” – Employees who earn more than the MSL threshold may have their positions designated as exempt only if their primary job duty(ies) passes one or more of the following tests:
Determining a job's FLSA designation
To qualify for the executive employee exemption, all of the following tests must be met:
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The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $684 per week;
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The employee’s primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise;
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The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and
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The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.
To qualify for the administrative employee exemption, all of the following tests must be met:
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The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684* per week;
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The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and
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The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
To qualify for the learned professional employee exemption, all of the following tests must be met:
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The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684* per week;
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The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;
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The advanced knowledge must be in a field of science or learning; and
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The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.
To qualify for the creative professional employee exemption, all of the following tests must be met:
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The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684* per week;
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The employee’s primary duty must be the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor.
Time Reporting
Accurate time reporting is an Auburn and AUM policy and, more importantly, a federal law ensuring that employees are paid fairly for the work that they perform.
The FLSA covers “student” and “non-student” employees whose positions are designated as “nonexempt”. Employees whose positions are designated as nonexempt are required by the FLSA to maintain accurate daily records of work time.
In most cases employees will use Kronos to record their time. They must record all actual hours worked as well as paid and unpaid absences. They are not allowed to voluntarily work “off the clock” without compensation, as this is a violation of federal law.
Employees are required to submit their time worked to Payroll Services through Kronos, via the timeclock or use of the time stamp. Submitted time must reflect starting and stopping times of actual work performed rather than the established work schedule.
Example: If the work schedule is 7:45 a.m. to 4:45 p.m., but the employee worked from 8 a.m. to 5 p.m., then the actual hours worked must be recorded.
Any alternative submission methods for time worked (for example, a paper form entered by a supervisor or timekeeper), must also reflect the starting and stopping times of actual work performed as opposed to the established work schedule. An alternative submission method (any occasion when the employee is not using the timeclock or timestamp to record time worked) is considered an exception. Exceptions of this nature are subject to prior review by Payroll Services and should have a valid business purpose.
IMPORTANT: Since this is a federal law requirement, no exception can be granted regarding this legal compliance requirement.
For more information, visit the TigerTime website or email tigertime@auburn.edu.
How to Clock In and Out
To clock in or out at a terminal
All you need to do is swipe your employee badge
To clock in or out at a computer:
- Visit autime.auburn.edu.
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Submit your AU user identification and password.
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Click “Record Timestamp”.
To clock in or out at a terminal
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Press the corresponding blue button for “Active Multiple Jobs”.
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Swipe your employee badge.
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Select List.
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Select a Job via the up/down arrows.
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Enter to select.
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To clock out, swipe your employee badge.
At the computer
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Visit autime.auburn.edu.
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Submit your AU user identification and password.
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Select a Job (if necessary).
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Click Record Timestamp.
Payroll Scheduling
At Auburn and AUM, employees whose positions are designated as nonexempt are paid biweekly (26 times per year) rather than monthly (12 times per year). Each pay period, they are compensated for actual hours worked, leave hours taken, and overtime hours that are earned.
If an employee whose job is designated as nonexempt works more than 40 hours in a workweek, they will receive either overtime premium pay or compensatory time off for all hours worked over 40 in that workweek.
Business Travel
Note: Definitions for bolded words are listed below.
If an employee whose position is designated as nonexempt travels on business for Auburn or AUM, they will need to keep track of their working hours to comply with FLSA guidelines:
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Any time spent while in Travel Status where the impacted employee is performing Principal Activities or related Incidental Activities is accounted for as Working Travel Time, whether or not on a Regular Working Day, and regardless of the time of day those activities are being performed.
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All time spent in Travel Status that coincides with Regular Working Hours, whether or not it occurs on a Regular Working Day, less the normal Home to Work Travel Time, is accounted for as Working Travel Time.
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Time spent while in Travel Status which does not coincide with Regular Working Hours will be accounted for according to the type of trip — Day or Away:
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Day
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As a driver or a passenger: All time spent less the normal Home to Work Travel is accounted for as Working Travel Time.
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Away
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As a driver: All time spent while driving, less the normal Home to Work Travel, is accounted for as Working Travel Time
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As a passenger: Not all time spent as a passenger is considered Working Travel Time. Links to forms that can help you determine what is considered Working Travel Time are available below:
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Regular Working Days: The employee’s regularly scheduled working days; typically Monday through Friday, or, as otherwise practiced in the work unit.
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Regular Working Hours: The employee’s regularly scheduled working hours, typically 7:45 a.m. through 4:45 p.m., or, as otherwise practiced in the work unit.
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Non-Working Days: Those days which are not Regular Working Days, typically Saturday and Sunday.
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Working Time: Time which will be accounted for as those hours for which the employee will be compensated.
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Home to Work Travel: Travel between an employee’s home and the regular work location. This time is not compensable to the employee.
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Travel Status: The process of being in-transit to and/or from a destination.
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Working Travel Time: Time during Travel Status, which will be accounted for as those hours for which the employee will be compensated.
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Day Travel: Time spent traveling by bus, train, airplane, helicopter, automobile, etc. to an assignment in another city/town and returning home during the same day.
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Away Travel: Time spent traveling by bus, train, airplane, helicopter, automobile, etc. to an assignment in another city/town which keeps the employee from home overnight; returning home on a subsequent day.
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Normal Meal Time: The prescribed time (at least 30 minutes) during the employee’s Regular Working Hours which is allocated as Non-Working Time (unpaid) for meals.
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Principal Activity: The primary duty(ies) or tasks of the employee’s job for which the employee will be compensated.
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Incidental Activity: Those activities performed by the employee which are related to the Principal Activity(ies) of the job regardless of when they occur.
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Deliberate Ignorance: When an employer knows or has reason to believe that an employee is continuing work after Regular Work Hours, and/or Regular Work Days, it does not exempt the employer from liability to compensate the employee for those working hours, regardless of whether such time is recorded.
After-Hours Digital Access
Many Auburn and AUM employees use technology after normal working hours, often by checking email, responding to a text message, or answering a phone call. For employees whose positions are designated as nonexempt, the use of mobile and electronic devices after normally scheduled work hours needs to be considered as hours worked – time for which the employee must be compensated.
Employees and supervisors should discuss this requirement to ensure that they have a clear understanding of the supervisor’s expectations regarding the use of technology after normal working hours.
Overtime Premium
In addition to a regular salary, employees whose positions are designated as nonexempt receive “overtime” premium based on their regular rate for any time worked in excess of 40 hours during the designated workweek. (The established university-wide standard work week begins at 12:01 a.m. Sunday and ends at midnight the following Saturday.)
By law, if these employees have overtime hours during the workweek, they will receive overtime premium of 1 1/2 times their regular hourly rate for all hours worked in excess of 40 hours during the designated workweek.
Compensatory Time
As a public employer, University departments have the option of providing compensatory time off in lieu of the earned overtime premium pay. However, some departments may choose not to offer compensatory time, but instead, pay premium pay for all overtime hours worked.
Compensatory time is also paid at 1 1/2 times the hourly rate for all hours worked in excess of 40 hours during the designated workweek. In the example below, impacted employees would receive three hours of compensatory time for the two overtime hours that they worked.
If a department offers compensatory time but an employee would like to receive premium pay for overtime, they should request that in writing to their timekeeper or supervisor prior to the performance of the work.
IMPORTANT: The employee has the right to elect to receive overtime premium pay, even if compensatory time off is offered. However, the employee cannot continuously switch back and forth between overtime premium pay and compensatory time off.
Premium Pay Example
If an employee's annual salary is $41,600, or $800 per week, but they work 42 hours in a designated workweek, they would either receive $60 in premium pay (see below) or, if offered by the department and accepted by the employee, 3 hours of compensatory time (2 hours x 1 1/2 times hourly rate):
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First 40 hours $20 per hour x 40 hours = $800
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+2 OT premium hours at $30 per hour (1 ½ x $20 normal hourly rate) = $60
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Pay for Designated Workweek =$860
Common Questions
What is the Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act, which was signed into law in 1938, established minimum wage, overtime pay, recordkeeping, and youth employment standards. It affects full-time and part-time workers in the private sector and in Federal, State, and local governments.
What is the FLSA Regulation?
The FLSA requires that employees whose jobs are designated as nonexempt keep accurate records of time worked, be paid at least minimum wage for all hours worked, and receive an overtime premium for all hours worked in excess of 40 in a workweek.
Who is covered by the FLSA?
Employees -- “student” and “non-student” -- whose positions are designated as “nonexempt”.
What does the Minimum Salary Level include?
The Minimum Salary Level threshold as defined by the DOL includes the established base salary of the primary job. It does not include benefits, supplemental pay, etc.
Who are the accountable parties?
Faculty, A&P and Staff supervisors – Any employee who directly supervises other employees whose positions, by virtue of 1) the minimum salary test, or 2) the work they are performing, are designated as “nonexempt.”
What is the supervisory responsibility under the FLSA?
Supervisors have the direct responsibility and obligation to ensure that all working hours and leave hours for employees in positions designated as nonexempt are properly accounted for and recorded on the approved time keeping system(s). Fulfilling this responsibility protects the legal rights of employees and facilitates the compliance obligations of the University.
Can an employee's position be designated as nonexempt even if they are a supervisor or a manager?
Supervisors and managers who earn less than the proposed minimum salary threshold level will, by law, have their positions designated as “nonexempt”. This is regardless of their primary duties (including managing or supervising others) that otherwise may have qualified for an exemption status of “exempt” under the “duties test.” In addition, some "working supervisors" whose primary duty is not management, as defined by the FLSA, may have their jobs designated as nonexempt.
What are the daily recordkeeping requirements for nonexempt staff work time?
Employees whose positions are designated as nonexempt are required by the FLSA to maintain accurate daily records of work time.
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They must record actual hours worked as well as paid and unpaid absences.
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Time records, whether electronic (Kronos) or paper (only when Kronos isn’t an option) must reflect actual starting and stopping times of work as opposed to established work schedule. For example, if the work schedule is 7:45 a.m. to 4:45 p.m., but the employee worked 8 a.m. to 11:30 a.m. and from 12 p.m. to 6 p.m., then these actual hours worked must be recorded.
Is it OK to work outside the normal University schedule as long as it totals 40 hours per week?
Regular University office hours are 7:45 to 11:45 a.m. and 12:45 to 4:45 p.m., Monday through Friday. These times may vary depending on your departmental schedule or your position.
It may be necessary for you to work outside your normal schedule because of emergency situations. If you have any questions concerning your work schedule, please direct them to your unit supervisor or HR Liaison.
Are supervisors allowed to dictate your work hours or schedule on a weekly basis or do they have to establish non-changing work hours?
Supervisors have the right to establish your schedule which may periodically fluctuate based on special projects, events, or other pertinent reasons. However, these changes should be the exception.
Do I clock in and out for lunch?
An employee whose position is designated as nonexempt must clock out for lunch. Employees are encouraged to take at least 30 minutes, and preferably an hour, away from their desk or work station for lunch.
Do I clock in and out for breaks?
Supervisors may authorize two 15-minute breaks, one mid-morning and one mid-afternoon, for employees whose job is designated as nonexempt. Employees may leave their work area during their break unless notified otherwise by their supervisor. Where it is necessary to have someone on duty at all times, care should be taken to make sure the work assignment is covered. Breaks are not cumulative; employees cannot forgo a break time to use later.
How do you clock in and out when you leave the office and do not return?
Keep track of the time you worked and then report that time to your timekeeper as soon as possible – preferably by the morning of the next working day.
What do I do if there is a time dispute?
Employees and supervisors should work together regarding scheduling -- especially if work is necessary outside of normal working hours. However, if there is a time dispute that cannot be resolved by the employee and supervisor, then you may contact your HR Liaison or Employee Relations.
How does overtime premium work?
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The standard workweek is 40 hours. During peak workloads or emergencies, it may be necessary that you work overtime (over 40 hours in a week). In such cases you will receive overtime premium at 1 1/2 times the regular rate -- either as overtime premium pay, or compensatory time if it is offered by your department. (Some departments may choose not to offer compensatory time off.)
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By law, you have the right to choose and receive overtime premium pay, even if your department offers compensatory time off, and regardless of a department's budget.
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Overtime is calculated for the period of each workweek, not on a daily basis. Only time actually worked, plus holiday time, counts toward overtime; leave time taken does not count toward the 40-hour period for overtime purposes.
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Any overtime work must be approved by your supervisor prior to the work being performed.
What is the overtime premium for employees whose positions are designated as exempt?
Employees whose positions are designated as exempt are not entitled to overtime premium, either in salary or compensatory time off.
If I know I will have overtime on Friday and Saturday, should I try to work less earlier in the week?
In this situation, you should talk to your supervisor by early in the workweek to determine the proper work schedule.
If I work overtime and want overtime premium pay instead of compensatory time off, do I have to email my supervisor each time I want premium pay?
No, you do not have to email your supervisor every time. You should send an initial email to your supervisors and timekeeper to inform them that you would like overtime premium pay.
How long can I bank my compensatory time off?
Compensatory time-off may be accumulated in an amount up to 240 hours (for 160 overtime hours worked). Once the maximum compensatory time is accumulated, any additional overtime worked must be paid as overtime in the current pay period.
How much will I be paid for working overtime on a holiday?
It is 1 1/2 times the holiday pay rate.
