Carnegie Mellon University

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is the basic federal law that affects all employees at Carnegie Mellon. It covers four key areas:

— Minimum wage

— Overtime

— Equal pay for equal work

— Child labor

There are also specific record keeping requirements.

The FLSA groups employees into two categories: exempt and non-exempt. An exempt employee is exempt from the minimum wage, overtime and certain corresponding record keeping provisions of the law. A nonexempt employee is covered by all the provisions of the FLSA. The Staff Compensation Manual [pdf] includes information on the FLSA and required compliance procedures. Questions regarding the FLSA can be directed to your HR Manager.

Practical Tips for Managers

Tell your employees if they are exempt or nonexempt and entitled to overtime at the time the job offer is made. Make sure all your employees are aware of their status.

Communicate clearly what you expect in terms of work hours and habits for all your employees, both exempt and nonexempt.

Require nonexempt employees to have any overtime work approved in advance.

Stay attuned to the daily activities of your employees, such as arrival and departure times, lunch periods, etc.

Nonexempt employees are required to record their actual hours worked in Workday.

As a manager, you are responsible for verifying that the hours reported are consistent with what is expected as well as what you have observed. Make sure you and your employees are aware of payroll deadlines.