FLSA - Harvard University



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Fair Labor Standards Act (FLSA)

• The Fair Labor Standards Act (FLSA) is a Federal Act enforced by the US Department of Labor. It’s primary objective is to eliminate detrimental working conditions. The FLSA sets out guidelines on several wage-related issues, including minimum wage levels, child labor, record keeping and overtime pay.

• The FLSA provides methods of determining which employees in an organization qualify for overtime pay. Those positions that qualify for overtime pay are called non-exempt (the employee is not exempt from the overtime provisions of the Act). Those positions that do not qualify for overtime pay, are called exempt (the employee is exempt from the requirement of overtime pay).

• In some states, there are both federal and state exemption requirements. Compliance with both federal and state requirements is mandatory. Where state and federal regulations vary, the regulations imposing the higher standards generally apply. Massachusetts’s law tracks the FLSA.

• To determine whether a position is exempt or non-exempt (overtime eligible), there are four "tests" which employers can use: Executive, Administrative, Professional and Outside Sales. These tests and the specific elements within each guide employers in determining the proper FLSA classification for each of their positions.

• The law assumes that positions are non-exempt and makes it the responsibility of the employer to prove and establish the case for exempt status. An individual employee cannot "waive" non-exempt status.

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