Human Resources
Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act, or FLSA, establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
On November 15, 2024, a federal judge struck down all components of the FLSA changes, specifically the change to the minimum exemption level of $43,888 that was put into effect July 1, 2024, and a second proposed increase of $58,656 for January 1, 2025. With this ruling, the salary exemption level will revert to $35,568.
Additional Important Information
Accurate Timekeeping
The complete and accurate recording of actual working and leave hours is not only a Tennessee Tech policy but, more importantly, a federal law which ensures that employees are paid fairly for the work that they perform.
The FLSA covers students, temporary and staff employees whose positions are designated as “nonexempt” (not exempt from the obligations and requirements for the accurate recording of working time, the right to a minimum wage and overtime pay.)
Tennessee Tech employees whose positions are designated as nonexempt are required by the FLSA to maintain accurate daily records of work time. They must record all actual hours worked as well as paid and unpaid absences. They are not allowed to voluntarily work “off the clock” without compensation, as this is a violation of federal law.
Time records must reflect actual starting and stopping times of work as opposed to the established work schedule.
It is also important to note that since this is a federal law requirement, no exception can be granted regarding this legal compliance requirement.
Online leave reporting instructions can be found on the Tennessee Tech Payroll website at Payroll-Leave reporting (tntech.edu).
After-Hours Network Access
Many Tennessee Tech employees use technology after normal working hours, often by checking email, responding to a text message, or answering a phone call. Employees whose positions are designated as nonexempt and their supervisors should note that the use of mobile and electronic devices after normally scheduled work hours needs to be considered as hours worked – time for which the employee must be compensated.
We encourage employees and supervisors to discuss this requirement to ensure that they have a clear understanding of the supervisor’s expectations regarding the use of technology after normal working hours. Regardless, if an employee whose position is designated as nonexempt uses technology devices to access work email, etc., this time is considered to be either “incidental” or “principal” work activity and must be recorded.
Business Travel
If you are an employee with a nonexempt position who is required to travel on university business, you are required to track your working hours while traveling just like you do during a regular work week. This is important in order to comply with FLSA guidelines.
The table below is a very generalized tool for knowing when business travel is compensable and when it is not. However, special rules apply to special situations.
| Type of Travel | Compensable | Not Compensable |
| Home-to-work commute | ✔️ | |
| Driving during or outside of normal work hours | ✔️ | |
| Traveling as a passenger and performing work-related activities | ✔️ | |
| Traveling as a passenger and NOT performing work-related activities | ✔️ |
Compensatory Time and Overtime Premium
In addition to a regular salary, employees whose positions are designated as nonexempt will receive compensatory time or overtime premium based on their regular rate for any time worked in excess of 37.5 hours during their designated workweek.
If an employee works over 37.5 hours in the designated workweek, they will receive compensatory time or an overtime premium of 1 times their regular hourly rate for all hours worked 37.5 - 40 hours and 1 1/2 times their regular hourly rate for all hours worked greater than 40 hours.
Compensatory Time and Overtime Basics
- Compensatory Time/Overtime is calculated for the period of each workweek, not on a daily basis.
- Only time actually worked, plus holiday time, counts toward compensatory time/overtime. Leave time taken does not count toward the 37.5 hour period for compensatory/overtime purposes.
- If you over 37.5 hours in a workweek, you cannot work fewer than 37.5 hours in the next work week to offset the difference.
IMPORTANT: Employees must request advanced approval from their supervisor before working overtime. If an employee performs unauthorized off-the-clock work, they must still be compensated for their working time. However, the employee may be subject to disciplinary action. Therefore, an employee should alert their supervisor well in advance if there is a specific need to work over 37.5 hours in the designated workweek.
Compensatory Time
As a public employer, the University may offer compensatory time off in lieu of the earned overtime premium pay. Compensatory time should be accrued in lieu of overtime payment provided that the employee has agreed, absent extraordinary circumstances.
Non-Exempt employees earn one times their Base Pay for any hours worked 37.5 – 40.0 hours per week. Non-Exempt employees earn one and one-half times their Base Pay for any hours worked over 40.
Pursuant to T. C. A. 8-50-801, an eligible employee who is compensated for overtime work by receiving compensatory time shall be entitled to use annual leave before having to use compensatory time when the employee has accumulated an annual leave balance that is within two (2) days of the maximum allowable balance of annual leave. Otherwise compensatory time should be used prior to sick and annual leave usage.
