If you have additional questions related to the FLSA regulations, please contact your HR Consultant. 

If you are a represented employee, the concepts of overtime, scheduling, etc. may be specifically negotiated into your collective bargaining agreement and will vary from below.

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is the United State's federal wage and hour law, administered by the U.S. Department of Labor (DOL). Among other things, it establishes the minimum wage and overtime pay for employees in both the private and public sector.

This federal act requires the payment of overtime to employees who are considered "non-exempt" and specifies how "exempt" employees must be paid and treated in order to retain their exemption status.

What does it mean to be exempt or non-exempt?

Exempt employees are excluded from the requirement of overtime payment. Non-exempt employees are entitled to overtime pay. The FLSA generally requires employers to pay all covered non-exempt employees the statutory minimum wage and overtime pay of at least one and one-half times their regular rates of pay for hours worked in excess of 40 hours in a workweek.

For an employee to be currently classified as exempt, s/he must meet all of the following tests:

• Salary Basis Test: An employee must receive a predetermined, fixed salary that is not subject to reduction due to variations in quality or quantity of work performed.
• Minimum Salary Threshold Test*: An employee must be paid a minimum salary of $844 per week ($43,888 per year).
• Duties Test: An employee must qualify as an executive, administrative, professional, or computer professional as defined in the FLSA regulations.

*The Minimum Salary Threshold Test does not apply to faculty and other salaried employees whose primary duty is teaching.

When is an employee entitled to overtime pay?

The FLSA generally requires employers to pay all covered non-exempt employees the statutory minimum wage and overtime pay of at least one and one-half times their regular rate of pay for hours worked in excess of 40 hours in a workweek. This federal act requires the payment of overtime to employees who are considered "non-exempt" and specifies how "exempt" employees must be paid and treated in order to retain their exemption status.

All overtime must be approved by the department head prior to the time such hours are worked. Overtime work is to be limited to emergency needs only. Unit administrators are responsible for controlling hours worked by personnel under their direction and for ensuring such service is accurately reported and formally confirmed by the reporting staff member and appropriate supervisor. For represented employees, refer to your collective bargaining agreement.

What is changing?

The DOL issued a rule that increases the minimum salary exemption threshold from $684 per week ($35,568 annually) to $844 per week ($43,888 annually), effective July 1, 2024.

An additional increase to the salary threshold is scheduled to go into effect on January 1, 2025 as follows: from $844 per week ($43,888 annually) to $1,128 per week ($58,565 annually). This threshold is set to automatically increase again on July 1, 2027, and then every three years thereafter.

Who will become impacted as a result of this regulation change?

Any full-time or part-time WSU employee that is currently exempt and receiving a salary below the new threshold of $844 per week ($43,888 annually) will be impacted.

Teachers, lawyers, and doctors qualify for an exemption as professionals. Faculty and other instructional academic staff whose primary duties are teaching will remain exempt regardless of their salaries. To be properly designated as a teacher, an employee must have actual instructional duties. Those who support teaching activities without actual teaching interaction will most likely be designated as non-exempt.

Employees whose primary duty is performing administrative functions directly related to academic instruction qualify as academic administrators and are not entitled to overtime compensation if they are paid at least as much as the entrance salary for teachers at their institution.

The DOL further states that employees who work in higher education, but whose work does not relate to the educational field, are not performing academic administrative work, and thus do not qualify for the reduced salary threshold. Admissions counselors, building maintenance employees, health care employees, dining hall managers, and dietitians do not perform academic administrative functions; therefore, they do not qualify for this exemption. For example, employees holding positions such as mental health counselors in the student health center do not qualify for this exemption because they do not engage in work directly related to the academic operations and functions of the university.

Who is excluded from this regulation change?

Faculty, part-time faculty, graduate teaching assistants, athletic coaches, extension program coordinators (I and II) and other academic instructional employees are automatically exempt due to FLSA teaching exemption.

How and when will individuals impacted by this change be notified?

Final decisions will be determined, and employees will be notified by July 2024. Impacted employees will receive information from their manager as well as their HR Consultant.

I am currently an exempt employee, but I will be classified as non-exempt as a result of the FLSA revision. How will my responsibilities change?

As a Non-Exempt employee, you will be responsible for tracking your time within WSU’s Web Time Entry. Per WSU policy, if you work over 37.5 hours in a week, you will be entitled to overtime pay. This will be paid at a rate of time and a half. Any unscheduled overtime should be discussed with your manager prior to working any foreseen overtime. This includes checking email, phone calls, and conducting any other work-related activity inside or outside of your place of work and/or standard workweek hours.

What changes in my benefits will I see as a newly non-represented professional eligible for overtime?

Non-represented staff benefits will not change with the exception of the illness bank accrual (which will maintain your current bank and, effective July 1, 2024, you will begin accruing illness hours at a rate of 6.38 hours per pay period to a maximum of 1,500 hours (an increase from the prior maximum of 990). Additionally, special needs time will no longer accrue, but any purpose time is increased from 15 hours to a total of 37.5 hours. For more information, please refer to the Personnel Manual for Non-Represented Employees, section 2 Benefits.

If you are represented and a newly non-exempt employee, please refer to your collective bargaining agreement for further information regarding your benefits. 

Can a non-represented professional eligible for overtime still work early and late?

For some non-exempt academic and non-academic staff, an adjusted work schedule is permissible to accommodate peak work times and other workload demands.

This must be pre-approved by your manager and occur within the established workweek. For instance, if you were to come in early or stay late one day during the week (Monday-Sunday), with your manager's approval, you might agree to come in late or leave early another day during that same week to ensure that your weekly hours do not exceed 37.5.Please refer to your collective bargaining agreement if you are a represented employee.

Where can I receive more training and support?

Web Time Entry training is available in Academica or contact your HR Consultant for additional support.

How will I know which of my staff, if any, will be affected by the changes?

Your HR Consultant has been provided with a list of affected employees. S/he will confirm the final list and will be meeting with affected managers.

What changes would an affected employee expect to see?

Non-exempt employees who work over 37.5 hours in a week will be entitled to overtime. The hours worked will be paid at a rate of time and a half. For represented staff, check the appropriate collective bargaining agreement.

All non-exempt employees will be responsible for tracking their time and entering hours into Web Time Entry (WTE). This will be required in order to receive a paycheck. Please ensure that you and or any other WTE approvers have deadlines posted in your schedule to ensure timely approval. The pay calendar is a support tool to help with this.

You can get WTE support online or by contacting Payroll at payroll@wayne.edu or 313-577-2138 with questions.

Prior approval must be received for any time worked over 37.5 hours per week. This includes checking email, phone calls, and conducting any other work-related activity inside or outside of the workplace.

How will employees be notified of any change in their overtime eligibility?

Managers of affected employees will be provided guidance to communicate with each employee. Additionally, all affected employees will receive direct communication in the form of a letter.

HR Consultants will be available to partner on the preparation and facilitation of this conversation.

How will a part-time employee be impacted if his/her salary is below the revised threshold?

All part-time employees will be non-exempt if their weekly salary is below $844 per week.

Do I need to process an EPAF transaction to change the impacted employee to a non-exempt e-class?

Yes.

• E-class change effective date: July 1, 2024
• EDSW submission deadline: July 3, 2024
• Change reflected starting on pay period 15 (July 17, 2024)

What are the key responsibilities of any WSU manager of non-exempt employees?

Managers must communicate with affected employees to ensure that they track all time worked in Web Time Entry. This is required in order to receive a paycheck. Managers must grant prior approval for any overtime worked (more than 7.5 hours or 37.5 hours/week).

What counts as overtime?

All work-related activity that occurs after an employee has worked 7.5 hours in a day or 37.5 hours/week. This includes travel time, training time, shift preparation/transition time and "casual work" such as checking email or listening to phone messages.

Who is responsible for authorizing and scheduling overtime?

As the non-exempt employee's manager, only you can authorize and schedule overtime.