What is the FLSA?
The Fair Labor Standards Act, more commonly known as FLSA, is a federal wage and hour law which was passed in 1938. The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time employees in the private sector and in Federal, State, and local governments. Compliance with the FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor (DOL).
On January 1, 2020, the Department of Labor released new guidelines for positions currently classified as exempt. These positions must earn a higher salary if they meet certain tests that define what is considered exempt work. The current minimum annual salary is $35,568.
What Has Changed with the FLSA?
Employees with a salary under $35,568 ($684 per week) will be designated as “non-exempt” making them eligible for overtime pay when physically working more than 40 hours within the workweek. In addition, the ‘highly compensated worker’ test and some special pay considerations have changed.
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FLSA Rules Effective 1/1/2020 |
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| Salary Level Test | $684 a week or $35,568 a year |
| Highly Compensated Worker Test | Salary test set at $107,432 |
| Special Pay | Allows up to 10% of minimum salary to be met by non-discretionary bonuses, incentive pay, or commissions. |
For questions regarding the overtime changes, please contact your HR Consultant or call Human Resources at 540/568-7247.
Helpful References for Supervisors and Employees
- FAQ's - Supervisors
- FAQ's - Employees
- Overtime Guidelines for Supervisors
- General Understanding of Worktime
- FLSA and Travel Time for Non-Exempt Employees
- Time and Attendance Reporting
- Policy 1303- Provisions for Granting Overtime and Compensatory Leave
- Distinguishing Between Overtime Leave and Compensatory Leave
- Record of Overtime Pay
- Record of Overtime Leave Earned
- Record of Compensatory Time Earned
