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FLSA Changes 2024: FAQs

Pay changes per the Fair Labor Standards Act (FLSA)

In April, the U.S. Department of Labor (DOL) issued a final rule to alter the overtime pay regulations under the Fair Labor Standards Act (FLSA). The rule increases the minimum salary threshold to $43,888 on July 1, 2024. In order to be in compliance with the final rule, СƬƵ will be implementing updates to assignments for employees who are earning less than $43,888 and currently exempt from overtime. Click here to learn more about timeline and overall impact on affected employees.

Please see FAQs for impacted employees below.

See Manager and Supervisor FAQs here

General

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is a federal law administered by the Department of Labor (DOL). Among other things, the FLSA establishes minimum wage and overtime pay affecting employees in the private sector and in federal, state and local governments.

What is the difference between an exempt and a non-exempt employee?

Employees whose employers are governed by the FLSA are either "exempt" or "non-exempt” from overtime. Non-exempt employees are eligible for overtime pay and other FLSA requirements, while exempt employees are not.

Changes

What are the changes?

In late April of 2024, the Department of Labor (DOL) announced that more United States workers would become eligible for overtime. Specifically, the change will increase the salary threshold below which employees are eligible for overtime to $43,888 annually.

When will the changes take effect?

The new regulations are effective July 1, 2024, but organizations can decide to implement prior to this date.

What does this mean for СƬƵ employees?

Under the new federal rules, if an employee’s annual salary is below the new minimum salary threshold of $43,888 annually, the employee will be considered non-exempt and therefore eligible for overtime and/or compensatory (comp) time.

Employees who are presently exempt from overtime and receive an annual full-time salary under $43,888 will now be considered unclassified and non-exempt. As a result:

  • These employees will become eligible for 1.5 times the hourly rate for all hours worked in excess of 40 hours in a workweek. Sick, vacation and personal time count as hours worked.
  • Non-exempt employees will track their hours in the university’s timekeeping system.
  • Their payroll schedule will switch from semi-monthly (two times a month) to bi-weekly (every two weeks) effective June 23, 2024.
What does a workweek mean?

A workweek is any set of seven consecutive 24-hour periods during which an employee is expected to perform their duties. Under the FLSA, it is mandatory for an employer to establish the definition of their workweek. СƬƵ defines its workweek as starting on Sunday and ending on Saturday.

How do I know if this federal change will impact my job?

The impacted employees will be notified via email by mid-June.

Can I choose to stay exempt from overtime?

Unfortunately, no. This is a federal requirement and there could be penalties for СƬƵ if we are not in compliance.

Where can I go for more information?

Contact the Human Resources Compensation team at compensation@kent.edu. For time reporting questions, contact Payroll at payroll@kent.edu.

Pay

If I am impacted by this change, will this change how I get paid?

Yes. Your annual salary will be converted to an hourly pay rate. You will be paid biweekly (every 2 weeks for a total of 26 pays in a year) instead of semimonthly (2 times a month for a total of 24 pays in a year). The important thing to remember is over a 12-month period, you will earn the same amount as you have been.

How is my hourly rate calculated based on my current annual salary? 

Once the FLSA changes take effect, your annual salary will be divided by 2080 hours (80 hours per pay x 26 pays) to determine your hourly rate.  Note that your current salaried appointment is based on 86.67 hours per pay x 24 pays.

When will this change happen to my pay?

The following changes will occur:

  • You will be paid your last semi-monthly paycheck on June 28, 2024, for days worked June 16, 2024, through June 22, 2024. Please note that this paycheck will be for only one week of pay (5 days).
  • You will begin recording your daily hours worked in TimeClock Plus starting the week of June 23, 2024.
  • You will receive your first bi-weekly paycheck on July 12, 2024, for days worked June 23, 2024, through June 29, 2024. Please note that this paycheck will only be for one week of pay (5 days).
What is СƬƵ doing to help me adjust to this pay change?

СƬƵ is providing two options to affected employees. You will have the voluntary option to be paid for 40 hours of your accrued vacation leave and/or receive 40 hours of advanced pay. Accrued vacation payout of 40 hours will occur on the last semi-monthly paycheck on June 28, 2024. Advanced pay of 40 hours will occur with your first biweekly paycheck on July 12, 2024. Please note that the 40 hours of advanced pay must be paid back over 10 payrolls in 2024. Also, these options are voluntary and you may choose to not do any of the options.

Can I choose both options of the pay options available to cover the transition from semi-monthly to bi-weekly?

Yes. You may choose both options. Please note that the accrued vacation payout of 40 hours will occur on the last semi-monthly paycheck on June 28, 2024. Advanced pay of 40 hours will occur with your first biweekly paycheck on July 12, 2024. Please also note that the 40 hours of advanced pay must be paid back over 10 payrolls in 2024.

How do I make this request for a payout of my accrued vacation or advanced pay?

The emailed notification you receive in June will provide you with information regarding how to make your election. Keep in mind this is voluntary and you may choose neither option.

What is the deadline for me to make a decision about a payout of my accrued vacation leave and/or advanced pay?

Your request must be received no later than the end of the day (5 p.m.) on June 18, 2024.

Overtime

Can I work overtime whenever I choose?

No. According to administrative policy 6-07.9, all overtime must be authorized by the properly designated administrative authority (e.g. a supervisor or manager). While overtime worked without supervisor approval must be paid, you should check with your supervisor to find out what the process is in your department for overtime approval.

Can I work “off the clock” and just not claim any overtime?

No. When an employee works “off the clock,” it means that they are working hours that are not recorded and are unpaid. These hours would also be excluded from any overtime calculation. It is against Ohio state and federal laws for an employee to work off the clock.

Can my supervisor require me to work overtime?

Yes. Under the Fair Labor Standards Act (FLSA), your supervisor can require you to work overtime.

Comp Time (Compensatory Time)

Can I take any earned overtime as compensatory (comp) time?

Yes. If you have been approved to work in addition to your typical 40-hour week, you can tell your supervisor that you would like to receive compensatory (comp) time instead of the overtime pay. Note that comp time is earned at 1 ½ hours for every hour worked.

If I accept comp time, when do I have to use it? For example, do I have to use it in the following week or can I use it anytime?

You can use comp time whenever you choose. However, you will need to obtain pre-approval from your supervisor in order to use it. Please see administrative policy 6-07.9 for more information regarding comp time.

Is there a limit to how much comp time I can accrue?

Yes. For each hour over 40 hours in a work, you will receive one and one-half hours of comp time. Comp time may be accrued up to a maximum of one hundred twenty hours (eighty hours of overtime actually worked).

If I reach the maximum of one hundred twenty hours of comp time, what happens when I work additional overtime?

Any additional overtime will automatically be paid per administrative policy 6-07.9.

Is comp time subject to the “use it or lose it” rule?

No. Your comp time will never expire. It will be paid out to you if you leave the university, retire or move to a position that is not eligible for overtime. It will be paid out to you at your current hourly pay rate.

If you go over the maximum of 120 hours, the amount over 120 will be paid out to you on your next paycheck and you can’t earn any more comp time until you use or cash some out.

You can cash out comp time by emailing Payroll@kent.edu with the following information:

  • The amount you wish to cash out
  • Which payroll to add it to
  • Your СƬƵ Banner ID

Flex Time

My supervisor has asked me to change my work schedule to avoid working overtime. Can I choose to work overtime instead?

No. Your supervisor has the right to alter your work schedule so that you do not work more than 40 hours in a workweek.

I’m used to having some flexibility with my work schedule. Will that continue if I am now eligible for overtime?

Yes. In coordination with your supervisor, flex scheduling is allowed within the same workweek. For example, let’s say a typical schedule is eight hours a day (during the day), and your department needs you to work a special event for four hours during the evening. The schedule may be changed, with the approval of your supervisor, to give you 4 hours off at another time during the same workweek.

Recording Hours

Do I have to punch a time clock (clock in and clock out) every day?

Yes. You will utilize the TimeClock Plus system to track your hours. Typically, you will use your computer/laptop to record your hours. There will be training for you about how to use the system and user guides. You can access the TimeClock Plus system through.

Will I have to clock in and out for lunch every day?

You will need to ask your supervisor if you will need to clock in and out for lunch every day. Your supervisor may have configured an automatic lunch deduction for you so that an hour or 30 minutes is automatically deducted.

How will I report overtime?

You will not do anything special to report overtime. Your work time will be recorded in TimeClock Plus so at the end of each day, you can see what your hours are for the workweek. Overtime will be calculated once you accrue more than 40 hours in the workweek. Keep in mind that sick, vacation, and personal leave also count towards your 40 hours in a workweek.

How will I report exception time (vacation, sick, and personal time)?

You will use TimeClock Plus to report leave time. Payroll will have training sessions, a recorded session for those unable to attend, and user guides to help you navigate the system.

Leave Time

How will vacation and sick time accrual change for employees who will become eligible for overtime?

Your annualized vacation and sick leave accrual amounts will remain the same. However, since you will be moving from being paid 24 times a year (semi-monthly) to being paid 26 times a year (bi-weekly), the amount you receive with each pay will be slightly different than what you have been receiving. The important thing to remember is over a 12-month period, you will receive the same amount as you have been.

For more information regarding vacation accrual, click here.

With my change to non-exempt status, will I have to take a payout of my leave time accruals (i.e., vacation and sick)?

No. Your leave accruals will not be paid out to you. They will remain in your leave banks and can be utilized as needed and with the approval of your supervisor as applicable.

Medical Insurance

Will medical benefits change for employees who will become eligible for overtime?

Your medical benefits will not change as a result of this change. You don’t need to take any actions related to your medical benefits.

How will my medical insurance and premiums/contributions be affected with the change from semi-monthly (2 times a month) to bi-weekly (every 2 weeks)?

There will be no change to your medical insurance. Your benefit contributions will still be the same amount as they were.

Miscellaneous

Am I required to sign a new employment agreement with my change to a non-exempt assignment?

Yes. Your conditions of employment are changing since you are moving from being paid semi-monthly (2 times a month) to bi-weekly (every 2 weeks). Also, you will be paid based on an hourly pay rate. Your new employment agreement will be sent to you no later than the week of July 1.

Is this a demotion?

No, it is not. You play a key role at СƬƵ. This is not a demotion and has nothing to do with your value to the University. We value your contributions and hard work. This change is due to the updated FLSA rules and has nothing to do with your performance or contributions. Your job title and job duties will not change.

I heard that with the new FLSA changes there is a two-part implementation. The first is effective July 1, 2024 and the second is effective January 1, 2025. When will I be notified if I am affected by the January 1, 2025 change?

Our primary focus is the July 1, 2024, change. Once that change has been fully implemented, we will be working on the January 1, 2025, change. The January 1, 2025, change has been challenged in the courts. The University will continue to work to ensure we are compliant with the January 1, 2025, change but monitor the outcome of pending litigation or regulation changes and make adjustments as needed.

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