Understanding the FLSA

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. 

Auburn and AUM Threshold

On April 23, 2024, the Department of Labor (DOL) announced a significant change to the FLSA’s minimum salary threshold for overtime eligibility. While this change was vacated by a federal judge on Nov. 15, 2024, Auburn and AUM implemented an overtime exemption threshold of $44,000.

At Auburn and AUM, employees who make below the $44,000 threshold: 

  • Receive overtime premium for all hours worked over 40 in a workweek.  

  • Must record their time worked through Kronos.  

  • Are paid biweekly (every two weeks) rather than monthly.   

If you have any questions after reviewing this website, please contact your HR Liaison or email univhr@auburn.edu.  

$44,000

The overtime exemption threshold for Auburn and AUM, effective Nov. 15, 2024 

Learn More!

ElevatED features courses on the FLSA that were created by our Compensation and HR Development teams.

Important Links

History
Exempt or Nonexempt
Time Reporting
Payroll Scheduling
Business Travel
After-Hours Digital Access
Overtime Premium
Common Questions

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:

1. Minimum Salary Threshold (MST) Test

  • Employees who earn less than the MST have their positions designated as nonexempt.

  • They must:

    • Keep accurate records of hours worked

    • Receive overtime premium (1 1/2 times their hourly rate) for hours worked beyond 40 in a designated workweek

2. Duties Test:

Employees earning more than the MST threshold may be exempt if their primary job duties pass one or more of the following exemption tests:

Under the FLSA, certain positions may be exempt from minimum wage and overtime pay provisions if the job duties meet specific criteria.

For the teacher exemption, this applies to employees whose primary duty is teaching, instructing, or lecturing in the activity of imparting knowledge, and who are employed by educational establishments. This means their positions would remain exempt.  

To qualify for the executive employee exemption, all of the following tests must be met:

  • The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $846.15 per week.

  • The employee’s primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise.

  • The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.

  • 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:

  • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $846.15 per week. 

  • 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.

  • 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:

  • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $846.15 per week

  • 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.

  • The advanced knowledge must be in a field of science or learning.

  • 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:

  • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $846.15 per week.

  • 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. Employees with a nonexempt position must record all hours worked.  

IMPORTANT: Since this is a federal law requirement, no exception can be granted regarding this legal compliance requirement. 

At Auburn and AUM, most employees record their time through Kronos -- either at a computer or at a timeclock located in their building.  

If you are an employee with a nonexempt position, here are a few things to remember. 

  • At Auburn and AUM, the workweek begins at 12:01 a.m. on Sunday and ends at midnight the following Saturday.  

  • For many employees, Monday through Friday are the regularly scheduled working days, and working hours are 7:45 a.m. to 4:45 p.m. However, you may not have this schedule.  

  • On occasion, a department may ask you to work outside of your normal schedule. If you have questions about your schedule, please contact your supervisor or HR Liaison. 

  • The time you submit must reflect when you started and stopped performing actual work rather than your established work schedule. For example: your normal schedule is 7:45 a.m. to 4:45 p.m., but on Tuesday you worked from 8 a.m. to 6 p.m. You must record 8 a.m. to 6 p.m.  

For more information, visit the TigerTime website or email tigertime@auburn.edu.

Employees with One Job

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.

  • Submit your AU user identification and password.

  • Click “Record Timestamp”.

Employees with Multiple Jobs 

To clock in or out at a terminal

  • Press the corresponding blue button for “Active Multiple Jobs”.

  • Swipe your employee badge.

  • Select List.

  • Select a Job via the up/down arrows.

  • Enter to select.

  • To clock out, swipe your employee badge.

-If you do not select a job, your pay may be incorrect

At the computer

  • Visit autime.auburn.edu. 

  • Submit your AU user identification and password.

  • Select a Job (if necessary).

  • Click Record Timestamp.

  • You must clock out for lunch. You are encouraged to take at least 30 minutes, and preferably an hour, away from your desk or workstation for lunch. 

  • You do not have to clock out if you are taking a short break. Depending on your schedule and your unit’s business needs, your supervisor may authorize two 15-minute breaks during the workday. For example, you may be able to take one mid-morning break and one mid-afternoon break. 

  • You are not allowed to work “off the clock”, even if you are asked to do so. This includes scenarios like:  

  • Clocking out for lunch and continuing to work 

  • Checking work-related email before bed, or  

  • Waiting for a work-related package while off the clock.  

For each of these examples, the work that you performed must be accurately recorded, and you must be compensated for your time. 

Payroll Scheduling

At Auburn and AUM, employees with nonexempt positions are paid every two weeks. 

Employees with nonexempt positions: 

  • Are paid for fewer hours per pay period (80 hours plus any overtime that is earned, compared to 173.33 hours per period), but 

  • Are paid more frequently (26 times per year rather than 12) 

IMPORTANT: a designation change from exempt to nonexempt does not result in reduced compensation. In fact, if you are an employee with a nonexempt position who works more than 40 hours within the designated workweek, you will receive overtime premium for all hours worked over 40.  

Payroll Schedules

  • The designated workweek is from 12:01 a.m. Sunday to midnight Saturday.

  • With rare exceptions, full-time employees are expected to work at least 40 hours in the workweek unless they are utilizing leave.

  • If you are an employee with a nonexempt position who works less than 40 hours in a workweek, your accrued leave must be used to make up the difference on your paycheck. 

Business Travel

If you are an employee with a nonexempt position who is required to travel on university business, you are required to track your working hours while traveling just like you do during a regular work week. This is important in order to comply with FLSA guidelines. 

The table below is a very generalized tool for knowing when business travel is compensable and when it is not. However, special rules apply to special situations. Please contact your HR Liaison or supervisor if you have more specific questions. 

Type of Travel

Compensable

Not Compensable

Home-to-work commute

✔️

Driving during or outside of normal work hours

✔️

Traveling as a passenger and performing work-related activities

✔️

Traveling as a passenger and not performing work-related activities

✔️

  • Regular Working Days: The employee’s regularly scheduled working days; typically Monday through Friday, or, as otherwise practiced in the work unit.

  • 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.

  • Non-Working Days: Those days which are not Regular Working Days, typically Saturday and Sunday.

  • Working Time: Time which will be accounted for as those hours for which the employee will be compensated.

  • Home to Work Travel: Travel between an employee’s home and the regular work location. This time is not compensable to the employee.

  • Travel Status: The process of being in-transit to and/or from a destination.

  • Working Travel Time: Time during Travel Status, which will be accounted for as those hours for which the employee will be compensated.

  • 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.

  • 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.

  • 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.

  • Principal Activity: The primary duty(ies) or tasks of the employee’s job for which the employee will be compensated.

  • Incidental Activity: Those activities performed by the employee which are related to the Principal Activity(ies) of the job regardless of when they occur.

  • 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.

Travel Guide Examples for Employees with a Nonexempt Position

An employee who regularly works at a fixed location in one city is given a special one day assignment in another city and returns home the same day. 

AS A DRIVER 

Time spent driving for work inside OR outside the normal work hours should is compensable.  

Time

Activity

Paid or Unpaid

7:20 a.m. – 7:40 a.m. 

Driving to AU Campus from home

Unpaid

7:45 a.m. – 9 a.m. 

Driving to location 

Paid 

9 a.m. – 12 p.m. 

Conference/ Meetings 

Paid

12 p.m. – 1 p.m.  

Break for Lunch 

Unpaid

1 p.m. – 4:45 p.m. 

Conference/ Meetings 

Paid

4:45 p.m. – 6 p.m.  

Driving back to AU campus

Paid

6 p.m. – 6:20 p.m.

Driving from AU Campus to home

Unpaid 


AS A PASSENGER 

Time

Activity

Paid or Unpaid

7:20 a.m. – 7:40 a.m. 

Driving to AU Campus from home

Unpaid

7:45 a.m. – 9 a.m. 

Riding to location 

Paid 

9 a.m. – 12 p.m. 

Conference/ Meetings 

Paid

12 p.m. – 1 p.m.  

Break for Lunch 

Unpaid

1 p.m. – 4:45 p.m. 

Conference/ Meetings 

Paid

4:45 p.m. – 6 p.m.  

Riding back to AU campus

Unpaid

6 p.m. – 6:20 p.m.

Driving from AU Campus to home

Unpaid 

 

IMPORTANT

  • Time spent riding as a passenger in a car inside the normal workday hours is compensable. 

  • Time spent riding as a passenger outside the normal workday hours is not compensable, unless the passenger is actively engaged in work related activities while riding. 

Travel that keeps an employee away from home overnight. 

Example 1

Monday 

Time

Activity

Paid or Unpaid

7:45 a.m. - 9 a.m.

Work at normal work site

Paid

9 a.m. - 11:30 a.m.

Driving to airport for 1 p.m. flight 

Paid 

11:30 a.m. - 12:30 p.m.

Lunch break

Unpaid

12:30 p.m. - 3 p.m.

Boarding plane and performing work-related activities during flight 

Paid

3 p.m. - 5 p.m.

Flight lands at 3 p.m.; rent car and drive to hotel

Paid

 

Tuesday

Time

Activity

Paid or Unpaid

7:20 a.m. - 7:45 a.m.

Driving to conference

Unpaid

7:45 a.m. - 12 p.m.

Conference

Paid 

12 p.m. - 1 p.m.

Working lunch

Paid

1 p.m. - 4:45 p.m.

Conference 

Paid

4:45 p.m. - 6 p.m.

Voluntary social mixer

Unpaid

6 p.m. - 7:30 p.m.

Dinner with coworkers

Unpaid

 

Example 2

Wednesday 

Time

Activity

Paid or Unpaid

7:45 a.m. - 11 a.m.

Working at office

Paid

11 a.m. - 1 p.m.

Driving to airport for a 3 p.m. flight 

Paid 

1 p.m. - 3 p.m.

Performs work-related activities in airport while waiting on flight

Paid

3 p.m. - 5:30 p.m.

Flight - relaxing and reading a book 

Unpaid

5:30 p.m. - 8 p.m.

Flight lands, baggage claim, and car rental

Unpaid

8 p.m. - 8:45 p.m.

Drives to hotel

Paid

 

Thursday

Time

Activity

Paid or Unpaid

7:20 a.m. - 7:40 a.m.

Driving to conference

Unpaid

7:45 a.m. - 12 p.m.

Conference

Paid 

12 p.m. - 1 p.m.

Lunch on own

Unpaid

1 p.m. - 4:45 p.m.

Conference 

Paid

4:45 p.m. - 5:45 p.m.

Voluntary social mixer

Unpaid

6 p.m. - 7:30 p.m.

Dinner with coworkers

Unpaid

 

IMPORTANT

  • Time spent traveling outside of typical working hours as a passenger on an airplane, train, bus, or car is not compensable. 

  • Time spent working or traveling on non-work days (Saturday and Sunday) during typical work hours (7:45 a.m. to 4:45 p.m.) is compensable.

Same Day Travel 

  • Normal commute times to and/or from the office or place of work are not compensable. 

  • Meal breaks are not compensable unless the employee is actively working through the meal period. 

Commute Time 

  • Generally, the commute from home to the work site is not compensable.   

  • If an employee must report to a meeting place, where they are receiving materials, or equipment, or instructions before traveling to the work site, time is compensable once the employee reaches the meeting site.  

Travel 

  • If travel occurs during normal work hours on non-working days (i.e. Saturday or Sunday for an employee who works regularly Monday through Friday) the time is also compensable. 

  • Time the employee spends traveling overnight away from home outside of regular working hours as a passenger on an airplane, train, boat, bus, or automobile and the employee is free to relax, is not considered compensable time. 

  • To the extent that an employee performs work while traveling, e.g. preparing for a meeting, reviewing documents, making telephone calls, this time constitutes hours worked even if the travel time would otherwise not be compensable. 

After-Hours Digital Access

Many Auburn University employees use technology after normal working hours. This includes checking email, responding to a text message, or answering a phone call.  The use of mobile and electronic devices after normally scheduled work hours is hours worked – time for which the employee must be compensated.  

Employees and supervisors should discuss the use of technology after normal working hours and whether it is allowed.  

Example: Kennedy checks her email work messages for 15 minutes before going to bed. She is working and should be compensated for this time. However, her supervisor and/or department can prohibit her from checking work messages during non-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.

If you work over 40 hours in the designated workweek, you will receive overtime premium of 1 1/2 times your regular hourly rate for all hours worked more than 40 hours.  

Example: Kennedy's annual salary is $41,600, or $800 per week, but she works 42 hours in a designated workweek. She would receive $60 in premium pay:

  • First 40 hours $20 per hour x 40 hours = $800

  • +2 OT premium hours at $30 per hour (1 ½ x $20 normal hourly rate) = $60

  • Pay for Designated Workweek =$860

Overtime Basics

  • 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.

  • If you over 40 hours in a workweek, you cannot work fewer than 40 hours in the next work week to offset the difference.  

IMPORTANT: You must request advanced approval from your supervisor before working overtime. If you perform unauthorized off-the-clock work, you must still be compensated for your working time. However, you may be subject to disciplinary action. Therefore, you should alert your supervisor well in advance if there is a specific need to work over 40 hours in the designated workweek. 

Compensatory Time

As a public employer, some University departments offer compensatory time off in lieu of the earned overtime premium pay. Some departments may choose not to offer compensatory time, but instead, pay premium pay for all overtime hours worked. Please contact your HR Liaison for additional information about what is offered in your department.  

Compensatory time is paid at 1 1/2 times the hourly rate for all hours worked in excess of 40 hours during the designated workweek. 

Example: If Kennedy's department offers compensatory time and she chooses to receive it in lieu of overtime pay, she would receive 3 hours of compensatory time (2 hours x 1 1/2 times hourly rate).

Up to 240 hours of compensatory time (for 160 overtime hours worked) may be accumulated by an employee if the department offers compensatory time. Once the maximum compensatory time is accumulated, any additional overtime worked must be paid as overtime in the current pay period.

IMPORTANT: The employee has the right to receive overtime premium pay, even if compensatory time off is offered. A department cannot require an employee to receive compensatory time in lieu of overtime pay.

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. Also, an employee cannot continuously switch back and forth between overtime premium pay and compensatory time off.

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.

What does the Minimum Salary Threshold include? 

The Minimum Salary Threshold includes the established base salary of the primary job. It does not include benefits, supplemental pay, etc.

What is the employee's responsibility under the FLSA? 

Employees must track their time through Kronos.

What is the supervisor's responsibility under the FLSA? 

Supervisors must 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? 

Yes. Supervisors and managers who earn less than the proposed minimum salary threshold will 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 employee's responsibilities regarding timekeeping?  

Employees whose positions are designated as nonexempt must maintain accurate daily records of work time. They must record actual hours worked (actual starting and stopping times of work as opposed to the established work schedule) as well as paid and unpaid absences.

Example: If Kennedy's schedule is from 7:45 a.m. to 4:45 p.m., but she works from 8 a.m. to 11:30 a.m. and from 12 p.m. to 6 p.m., then she must record these hours.

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.

Can supervisors change the work schedule weekly, or must they set fixed hours? 

Supervisors have the right to establish an employee's schedule as it may periodically fluctuate based on special projects, events, or other pertinent reasons. However, these changes should be the exception.

What about lunch and breaks? 

  • 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.

  • 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.

What 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, please contact the HR Liaison or Employee Relations.

if you are being redesignated from exempt to nonexempt, how does this change impact leave amounts and accruals?

Regarding vacation time accrual, an impacted employee will continue to accrue the same total of 160 hours per year, but it will now be distributed across 26 pay periods instead of 12. This means the employee will receive 6.16 hours every two weeks, totaling 160.16 hours over 26 pay periods.

if you are being redesignated from exempt to nonexempt, how does this change impact parking?  

The employee's current parking pass will remain valid until the next scheduled registration period.

Last updated: 12/09/2024