FAQ: FLSA Overtime Changes (updated 6/12/2024)

The Department of Labor recently amended the Fair Labor Standards Act (FLSA). Effective July 1, 2024, to be Exempt from overtime, employees must earn an annual salary of at least $43,888. Beginning January 1, 2025, FLSA regulations state that Exempt employees must earn an annual salary of at least $58,656.

Some salaried Truman employees who had previously been Exempt will now become Non-exempt and eligible to receive overtime for hours worked in excess of 40 hours per week.

As a public institution, Truman is allowed to offer compensatory time (comp time) to these employees rather than overtime pay. These employees will now be classified as Salaried/Comp Time Eligible.

These new FLSA updates have already been challenged in court, meaning the new regulations could be postponed or repealed. For now, the University will prepare to implement these changes, and employees who will be affected will be notified. Human Resources will keep employees and their supervisors apprised of any new developments.

Slides from Supervisor Trainings

Slides from Employee Informational Meeting

What does this mean for these employees?

Employees should work with their supervisors to flex their time so they do not work more than/less than 40 hours in a week. For example, if an employee works late on a Tuesday, they should leave early or come in late later in the week. If that employee needs to work an event on Saturday, they should take time off earlier in the week in preparation for that time. Truman’s workweek is Sunday through Saturday.

Employees who need to be absent from work for personal reasons should make up time during the week. If that is not possible, they should use personal leave time. Previously, these employees could take time off only in half-day or full-day increments; they will now report leave time in TimeClock in 15-minute increments.

Salaried/Comp Time Eligible employees are now Non-exempt under FLSA and will need to count their hours each week.

Does this mean these employees now have to clock in and out each workday on TimeClock?

No. Employees who are Salaried/Comp Time Eligible will use TimeClock to report hours worked in excess of 40 hours per week and to request time off.

However, these employees and their supervisors must have a plan for keeping track of hours if the employee intends to work anything other than their standard 40-hour schedule so there is some form of documentation.

Employees will use TimeClock to report time in excess of 40 hours in a week or to request leave time. This must be done as soon as possible after the close of the workweek. Employees cannot use excess time or makeup lost time in the following week. All time must be reported in the Sunday through Saturday workweek.

How is the earned comp time reported?

Comp time earned should be reported through TimeClock in 15-minute increments. Any time worked above 40 hours will be calculated as time-and-a-half. Employees can accrue a maximum of 90 hours of comp time (60 hours of time worked above a 40-hour workweek). The Payroll Office will payout accrued comp time each January.

Here are instructions for reporting comp time in TimeClock.

  1. Log in at the following URL: https://beryl1.truman.edu/app/manager/#/ManagerLogOn
  1. Once logged on, the employee will need to click the Hours tab and click Time Sheets.
  1. The employee should select their name and click Next. Click the “Display Weekends” box so the full week is present. On the date in which they have worked above 40 hours, they will click Add on the date and click Edit. The amount of time worked above 40 will need to be entered in the “Hours” box. This should be reported in 15-minute increments. Change the job code from “Default Job Code” to “6 – Comp Time Earned” and click Save. Click Next and then click Process.
  1. Comp time should be recorded and appear under accruals.Employees will now have an option to use comp time when leave is requested through TimeClock.

How does this change the way leave is reported?

Salaried/Comp Time Eligible employees will now use leave in 15-minute increments. To report leave, the employee will select the desired category (i.e. sick, vacation, comp time, etc.) then manually change the hours and minutes to reflect the appropriate amount of leave time. Any issues reporting or using leave time should be reported to Payroll.

How will these employees report time while traveling? 

The University has created a guideline, based on DOL regulations, for Non-exempt and Salaried/Comp Time Eligible employees to use to determine what hours spent traveling are compensable.

That policy is on the Human Resources website: https://hr.truman.edu/fair-labor-standards-act-travel-guidelines/.

What about times when these employees are on call?

The DOL distinguishes between employees who are “engaged to work” (paid) instead of “on call” (unpaid).

If an employee is “engaged to work,” that employee is tied to the workplace and cannot leave. Even if engaging in personal activities (like reading a book or surfing the internet while they wait for work), the employee would still be compensated.

If employees are “on call,” they are free to leave their home or work place and engage in personal activities without hardship. That time is non-compensable. If an on-call employee who is Non-exempt or Salaried/Comp Time Eligible is called in to work, they will earn a minimum of three hours and should include those hours with other hours worked that week.

What about checking email? Does that count as work time? 

The DOL does have a De Minimis Work rule whereby taking a call, sending an email or a short in-person conversation that takes a minimal amount of time would not be compensable. However, any activity that takes more than a few minutes or if the employee is regularly checking and responding to emails and phone calls would be considered compensable work time.

In what ways can departments hold the line on comp time? 

When possible, supervisors should consider assigning only Exempt employees on-call shifts, evening/weekend work, and travel so Non-exempt employees do not need to work in excess of 40 hours in a week.

However, when Salaried/Comp Time Eligible employees must work evenings, travel or take on-call shifts, that time should be assigned earlier in the week to allow the employee to adjust time for the remainder of the week. Weekend work should be planned to allow the employee to make adjustments to their schedule during the workweek.