MSU Human Resources >> Flsa >> Fair Labor Standards Act

Fair Labor Standards Act


The Fair Labor Standards Act (FLSA) is a federal law, passed in 1938, that establishes certain labor related standards (including overtime pay, recordkeeping, and minimum wage) for employees in the private sector and in Federal, State, and local governments.  The Department of Labor (DOL) issues and enforces FLSA regulations.  Employees covered by the act are considered non-exempt and are eligible to receive the statutory minimum wage and time-and-one-half overtime pay for hours worked in excess of 40 in any defined work week. Employees not covered by the act are exempt and do not earn overtime pay.  An employee is classified as exempt under what are referred to as the white collar exemptions, only if the employee meets both of the following tests:

  • Salary Level Test – the employee makes above a certain salary level, currently $23,660 annually; and
  • Duties test – duties consist of certain executive, administrative or professional functions.

Exceptions to the salary level test are provided for employees who fall into specific categories – primarily teachers, doctors, lawyers, academic administrative personnel and outside sales. Those categories of employees do not need to meet the salary level.

As noted, exempt employees are not eligible to earn overtime under the FLSA.  Some of MSUs collective bargaining agreements, however, do provide the ability to earn overtime for certain employees covered by the agreement.  These employees include:

  • APA levels 11 and below
  • APSA levels 11 and below
  • Non-Union employees levels 11 and below whose conditions of employment follow the APA/APSA contract

For additional information, please refer to the collective bargaining agreements or the overtime and time tracking chart.

The DOL, on May 18, 2016, issued final regulations that modified the current regulations; however implementation of those modified regulations were suspended due to a temporary injunction issued by a U.S. District court judge.  See the memo issued to Deans, Directors, Chairs, Human Resources Representatives and Fiscal Officers for details regarding MSU's response to the injunction.

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