Fair Labor Standards Act (FLSA) - November 2019 Employees Update

Sep 18, 2026

Uploaded by Aldword

Presentation overview of the Fair Labor Standards Act (FLSA) and how 2019 regulatory updates affect employee overtime eligibility. Explains the FLSA’s core overtime rule and the shift in the salary threshold for exemption status, including the effective date of January 1, 2020. Covers impacts on specific roles, required pay and timesheet processes, and the FLSA exemption test elements. Clarifies exempt vs. nonexempt meaning, stating duties stay the same while overtime eligibility changes, and emphasizes compliance rather than professional status changes.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages15

Reading Time38 min

AccessFree to download

What is FLSA?

How has the FLSA changed?

What is the impact to NMSU?

What’s the process for making the change?

What is the FLSA exemption test?

Employee impact of FLSA Changes

Further Clarification

Fair Labor Standards Act NOVEMBER, 2019 Dr. Gena Jones; Asst VP HRS Human Resource Services Fair Labor Standards Act (FLSA) What is FLSA? The Fair Labor Standards Act (FLSA) is a federal law administered by the Department of Labor. Specifically, the FLSA governs overtime provisions, which ensure employees receive pay at a rate no less then time-and-a-half for all time worked in excess of 40 hours in a work week. How has the FLSA changed? Currently, the salary threshold for exemption status is $23,660 per year ($455 per week) . On September 24, 2019, the Department of Labor announced a final ruling to increase the salary threshold to $35,568 per year ($684 per week), effective January 1, 2020 . The threshold of $35,568 is only one element of the exemption test to determine the appropriate exemption status. What is the impact to NMSU? • There were about 368 possible impacted positions (Gr. 05 & 06) . • Pay adjustment from on-time to lag pay will result in a delayed paycheck after conversion (e.g. Conversion January 1, next paycheck January 31) . • Eligibility for OT for some positions. • Employees will need to submit a timesheet each pay period accounting for the hours worked on a daily basis. HRS is working with Administration and Finance to determine feasible options to address the lag pay. More information to come. What’s the process for making the change? Over the past month, HRS has reviewed the impacted positions: • HRS reviewed positions in grade 06 and below. • Application of the “FLSA exemption test” to each position. • The most recent information provided in position classification actions and postings were reviewed to determine if the positions meet the exemption tests. What is the FLSA exemption test? Completion of a questionnaire to determine the exemption status of a position (executive, professional, administrative, certain computer related jobs) . To qualify for an exemption, at minimum the following elements must apply: 􀀹Scope of the work: Example--The primary duties consist of performing office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers. 􀀹The work includes the exercise of discretion and independent judgment with respect to matters of significance. 􀀹Is pay at least $35,568 per year ($684 weekly), effective Jan. 1, 2020? Employee impact of FLSA Changes • Exempt vs Nonexempt-these terms refer to the eligibility to earn overtime. Compensation at an hourly rate does not define the job role. Professional staff can be compensated at an hourly rate of pay without a change to job duties or levels of authority and responsibility. • Nonexempt employees are eligible to earn overtime • Exempt employees are not eligible to earn overtime • No changes in duties, responsibility or authority – the job duties and responsibilities will not change with a conversion to nonexempt. The change is to eligibility for overtime. • Timesheet – employees will need to submit a timesheet each pay period accounting for the hours worked on a daily basis. Further Clarification…. • The change in FLSA exemption status is not an indicator of your professional status or decreases the importance and value of your work. • Conversion to non-exempt is a matter of compliance. All jobs contribute to the institution’s success. • Your roles and responsibilities may be further clarified by your supervisor.

FAQs

What does the FLSA require regarding overtime pay?

The FLSA is a federal law that governs overtime provisions. It ensures employees receive pay at a rate no less than time-and-a-half for time worked over 40 hours in a work week.

What change to the salary threshold is effective January 1, 2020?

The Department of Labor increased the salary threshold for exemption status to $35,568 per year ($684 per week), effective January 1, 2020.

Will converting between exempt and nonexempt change job duties or authority?

No. The presentation states there are no changes in duties, responsibility, or authority; the change is eligibility for overtime. Employees must also submit timesheets each pay period.

Sep 18, 2026

Uploaded by Aldword