FLSA Guidance
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in private sector and in Federal, State, and local employment.
Exempt Status
Under the final rule to update the FLSA regulations, a position must satisfy three criteria to qualify as exempt from overtime:
- The incumbent is paid on a salary(not hourly) basis: must receive a predetermine, fixed salary that is not subject to reduction due to the variations in quantity or quantity of work performed.
- The salary must be at least $684/week, or $35,568 annually (the minimum salary requirement or salary threshold).
- The position’s primary duties must be consistent with executive, professional, or administrative positions as defined by Department of Labor (DOL). This is commonly referred to as primary duties test.
Non-Exempt Status
Employees who do not meet the above criteria are considered "non-exempt" and wage and hour rules apply, which are outlined on the Bureau of Labor and Industries (BOLI) website.
Supervisors must ensure the following for non-exempt employees:
- Established hours worked;
- Meal and rest breaks are taken in accordance with Oregon law;
- Account for travel time;
- Account for remote access – tracking when employee is working from home or remotely; and
- Account for use of cell phone and/or email during non-work hours.
Supervisors must maintain accurate time records, even if no overtime worked, so that the non-exempt employee is compensated for actual hours worked and paid overtime premium for hours worked in excess of 40/week.
