Fair Labor Standards Act (FLSA) Overview
Classification Titles with FLSA Status
Analysis Tool for FSLA Exemption (pdf)
State Personnel Manual, Hours of Work and Overtime Compensation (pdf)
Effective August 23, 2004 the U.S. Department of Labor (DOL) implemented new regulations for the administration of the Fair Labor Standards Act (FLSA). The new regulations provided updated criteria for employers to use in determining which employees are subject to or exempt from the overtime provisions of the Act.
Employees who are subject to overtime and record-keeping stipulations mandated by the FLSA regulations are considered non-exempt; employees who have an exempt FLSA regulations status are not covered by the overtime and record-keeping requirements of the Act. The Department of Labor considers all employees subject to overtime and minimum wage requirements unless their positions have been specifically determined to be exempt. This exemption is based on an evaluation of the employee's duties and responsibilities, which may offer an exemption if the position is considered executive, administrative, professional, or in certain computer-related occupations.
The Department of Labor and US Courts interpret the FLSA
regulations by first assuming that employees and positions are nonexempt.
Therefore, the employer is required to demonstrate that exempt status can
be substantiated based on the Department of Labor's narrow exemption criteria.
At NC State the Division of Human Resources' Department of Classification and Organizational Services makes the
determination of FLSA regulations status.
The determination is based on the nature and the requirements of work performed and is not directly related to job title, salary grade, or EPA/ SPA (Exempt from or Subject to the State Personnel Act) status. Determining whether a position meets the criteria of these exemption tests is the responsibility of NC State Division of Human Resources. Failure to comply with the FLSA regulations carries substantial legal risk.
The standards of the Fair Labor Standards Act are enforceable for both SPA and EPA employees, as well as, part-time and full-time employees. An employee cannot be exempt from the minimum wage, overtime and specific recordkeeping requirements of the Fair Labor Standards Act unless the employee's position meets specific DOL requirements regarding job duties and salary as follows.
Salary Basis - Regularly receives a predetermined minimum amount of at least $455/week ($23,660 annually).
Job Duties - In addition to the salary basis requirements, most employees must perform duties and responsibilities in certain job categories, as defined by the Department of Labor, (e.g., executive, administrative, or professional) in order to qualify for an exemption from FLSA regulations. All criteria for the specified exemption must be met simultaneously to qualify for the exemption.
