Fair Labor Standards Act Revisions
Background
National news casts have given a lot of time to the revisions to the "white collar exemptions" to the Fair Labor Standards Act (FLSA) which went into effect August 23, 2004 . These revisions have caused some changes for some employees at the University of Memphis .
The FLSA provides that time records must be kept and overtime paid for all employees except those whose duties meet certain tests. Types of exemptions include professional, executive, administrative and certain types of computer positions. Teachers are exempt under the professional test.
One of the most significant changes is the minimum salary requirement for employees who are exempt from the overtime provisions of the law. An employee must make a salary of at least $455 per week ($1,972 per month or $23,660 per year) to continue to be exempt. This is an absolute amount, so if an employee works half time and makes half this amount, that employee is no longer exempt. Teachers are excluded from this minimum salary requirement. Employee's duties must also pass one of the exemption tests.
Impact on University of Memphis
Several different groups of employees have been affected at UofM
• Employees in several categories have been asked to provide current information on their duties and to complete a questionnaire to ensure that they retain their exempt status.
• Some part-time monthly regular employees have been changed to hourly because they do not meet the new salary requirement.
• Some temporary monthly employees are being changed to hourly because they do not meet the new salary requirement.
Graduate Assistants
• Graduate Teaching Assistants: No Change
• Graduate Assistants - Instructions Assistance: If the GA has contact with students, same as Teaching GAs. If there is no student contact, same as Service GAs.
• Graduate Research Assistants: If the GA is working on research for which they will receive a benefit, i.e., graduate project, class credit, publication credit, then no change. If other research, same as Service GA 's
• Graduate Assistants - Service: These employees are non-exempt.
Positions that Change from Exempt to Non-Exempt
Employees whose positions change from exempt to non-exempt must follow the rules listed below.
• Must keep time records
• Must be paid overtime for any hours over 40 in a work week
• Must be paid at least minimum wage for each hour worked
Regular employees will be grandfathered on the monthly pay plan to keep the same benefits. Both regular employees and non-exempt Graduate Assistants will be paid under the provision in FLSA for paying a "salary for fluctuating hours" to non-exempt employees.
Timeframe
The revisions became effective August 23, 2004; however, some changes can not be implemented until after the TBR meeting in September. Changes will be made retroactively.