Topics Map > Human Resource System (HRS) > HRS Human Resources Administration
Correcting and Updating FLSA Status in HRS
Overview
This document identifies how to correct the FLSA status for FA/AS/LI hourly employees and employees with one or multiple positions. These employees are paid for the hours worked as recorded through the Time & Labor system.The FLSA Status in HRS is defined on the Job Code table. For most FA/AS/LI Job Codes, the default FLSA Status is EXEMPT. The FLSA Status will default appropriately when the Job Code is entered on the Position. The Pay Basis for most FA/AS/LI employees is either Annual or Academic. Pay Basis: Hourly is only appropriate for a limited group of FA/AS/LI Job Codes. When Pay Basis: Hourly is used with a FA/AS/LI Job Code on the Position, the system only allows FLSA Status: NON-EXEMPT. Due to the Federal FLSA Regulation changes, it is appropriate to pay some FA/AS/LI employees using an hourly Pay Frequency. For FA/AS/LI that should be hourly Pay Frequency, their FLSA Status may need to be changed to NON-EXEMPT on the Position and then on the Job. An hourly Pay Frequency must be setup on the Compensation tab in Job Data using H as the Frequencies and Rate Code: NAHRLY.
Due to the previous Federal Regulation change, the FLSA Status is tied to the person NOT job. Therefore, if an employee has 4 active jobs (Empl Rcds), all 4 jobs must have the same FLSA Status. The FLSA Status should be determined based on the employee's primary job and other jobs should follow that FLSA Status.
Process Considerations:
- When the FLSA status needs to be changed on the Position for someone with a single position. Changing the FLSA status requires the use of Correction access to the Position Data Page. If the FLSA status is changed only on the job data row using correction instead of on the position, the Time and Labor enrollment process will not pick up the employee.
- If there are rows added to the Job Data page after the initial row with the incorrect FLSA value, these rows will also need to be updated with the correct value.
- If the Job Code is changed, the FLSA Status will reset to the default value and must be changed again, if appropriate.
- You can run the FA/AS/LI Hourly Audit Report to see which employees need to be changed. See Running the FA/AS/LI Hourly FLSA Exempt Audit Report in HRS .
- Due to previous FLSA Federal Regulation changes, if an employee has more than one active job record the FLSA Status will need to be consistent through all job records because FLSA Status is based on Person NOT Job. To determine FLSA Status for multiple active job records, review the following:
- Employee's primary job based on the HRS Primary Job Indicator field, Benefits Primary field and/or FTE.
- Employee's combined salary for all active jobs. If the combined salary is below the FLSA Threshold Exemption Amount $43,888 (based on the 7/1/2024 Federal Regulations), then the user needs to determine if the FLSA Status should be Exempt or Non-Exempt. If the employee’s job code is under a default threshold exemption job code, then the FLSA Threshold Exemption reason needs to be added in Job Data regardless of the employee’s salary amount. If the employee is under the threshold amount AND the job code is not under a default threshold exemption job code, BUT, during the assessment, if it is believed the employee should be Exempt, then the FLSA Threshold Exemption reason needs to be added in Job Data for that job. If it is determined the FLSA Status should be Non-Exempt, then the rate of pay may need to be changed from annual to hourly.
- Impact to employee when moving to FLSA "Nonexempt' from FLSA "Exempt"
- Report all time worked including overtime and accrual of compensatory time, including absences must also be reported on a timesheet.
Instructions For Correcting FLSA Status for FA/AS/LI Employees to Non-Exempt
- Navigate to Organizational Development > Position Management > Maintain Positions/Budgets > Add/Update Position Info.
- Search for the Position Number and insert a row with the correct Effective Date, or, if available, use Correct History. Note: If this change is made in correction mode, the incumbent Job Data record will not be updated.
- On the first tab, Description, click the USA flag at the bottom of the page to view the FLSA Status field. Click the drop down and select Nonexempt.
- Save.
- Navigate to the Job Data Page: Workforce Administration > Job Information > Job Data.
- Search for the employee and select Include History. On the Work Location tab, note the Effective Date of the hire row which should contain the position number being corrected.
- Click the plus button to add a new row.
- Enter the Effective Date of the original row.
- Effective Sequence: Enter "1". If there already are additional Job Data rows entered for the same Effective Date, the Effective Sequence number on the new row must be one number higher than the previous row's Effective Sequence number.
- Action: Position Change
- Reason: Change FLSA Status
- Highlight the Position Number and cut the value (Crtl-X), then use the Tab key to move out of the field. This will allow all the fields related to the position to be modified.
- Click in the Position Number field and Paste (Ctrl-V) the position number back into the field.
- Leave the Position Number field using the Tab key. The new position values are refreshed as shown below on the Work Location and Job Information tabs.
- On Job Information tab, click the USA flag at the bottom of the page to review the FLSA Status field updated.
- Save.
Reviewing and Updating FLSA Status for Employees
Changes to FLSA Status will need to be completed if the status appears inconsistent with the employee's primary job record and/or job responsibilities.
- Navigate to Job Data: Workforce Administration > Job Information > Job Data.
- Search by Empl ID and Empl Rcd.
- Review ALL Active job records and the FLSA Statuses associated with each record; if only one active job record exists, skip bullet 1 and 3 below.
- Determine the primary job of the employee and note the FLSA Status
- Ensure that the Primary FLSA Status is consistent with FLSA regulations:
- If the employee makes more than $43,888 annually ($844/weekly) based on all active jobs, then the FLSA Status can be Exempt.
- If the employee makes less than $43,888, based on all active job records AND the Primary Job code is exempt from FLSA regulations - aka Doctor, Teacher, Lawyer, etc, then the FLSA Status can be Exempt. However, the FLSA Threshold Exemption field in Job should be updated. See Updating FLSA Threshold Exemption Field in HRS .
- If the employee makes less than $43,888, based on all active job records AND the Primary Job code is NOT exempt from FLSA regulations, then the FLSA Status should be Non-Exempt
- Review other active FLSA job statuses to ensure they are consistent with the primary job's FLSA status. If the FLSA Statuses are accurate AND consistent, no further action required. If inconsistent or inaccurate due to FLSA Regulations, proceed to step 4 below.
- Copy the Position Number(s) for the employee where the FLSA Status is inconsistent with the employee's primary job.
- Navigate to Add/Update Position Info: Organizational Development > Position Management > Maintain Positions/Budget > Add/Update Position Info
- Search for the Position Number.
- Click the plus button to insert a new row.
- Enter the Effective Date, which should be the first date of the following pay period. Ex: If this report was run on 7/22/2024, then the Effective date in Add/Update Position should be 7/28/2024.
- Reason should be 070 - Change FLSA Status
- Select the USA flag at the bottom left.
- Update the FLSA Status to Nonexempt or Exempt, as appropriate.
- Select the Specific Information tab.
- Ensure that Update Incumbents box is checked.
- Select the Budget and Incumbents tab.
- Select Save
- Select Job Data link in the Current Incumbents section to be taken to the Job Data page.
- Insert a new row with an Effective Date that matches the date used in Position.
- Update the Effective Sequence to 1
- Action = Pay Rate Change
- Reason = Different Pay Basis
- Select the Job Information tab in Job Data
- Select the USA Flag, ensuring the correct FLSA Status pulled in properly.
If it did not, go to the Work Location tab and insert a row with the current date as the Effective Date. Cut (Ctrl-X) the Position Nbr, exit the field and Paste (Ctrl-V) the Position Nbr. This should refresh the FLSA Status field. - Go to Compensation tab.
- Update the Compensation Rate to the appropriate rate (annual or hourly).
- Change Frequency to H for hourly or B or 9B for annual
- Click the Default Pay Components button to ensure all related codes (visible and hidden) are updated appropriately
- Update the Rate Code to NAHRLY for hourly, or NAANNL for annual
- Enter in Comp Rate (based on hourly or annual rate)
- Converting Hourly to non C-Basis Annual: Take most recent hourly Comp Rate x 2080 (number of hours for a full-time employee) = New Comp Rate
- Converting Hourly to C-Basis Annual: Take most recent hourly Comp Rate x 1560 (number of hours for a full-time C-Basis employee = New Comp Rate
- Converting 9B C-Basis Annual to Hourly: Take most recent Comp Rate ÷ 1560 (number of hours for a full-time C-Basis employee) = Hourly Rate. If any digits appear after the 2nd decimal, round up. Ex: $17.121348 would be $17.13.
- Converting non C-Basis Annual to Hourly: Take most recent Comp Rate ÷ 2080 (number of hours for a full-time employee) = Hourly rate. If any digits appear after the 2nd decimal, round up. Ex: $17.121348 would be $17.13.
- Select the Calculate Compensation button
- Select Save
Additional Resources
Related KBs:
- Managing Position Data in HRS
- The Compensation Tab in HRS
- Comp Rate Frequency in HRS
- HR Report List for HRS
- Analyzing the FLSA Exempt Compliance Report in HRS
- Running the FA/AS/LI Hourly FLSA Exempt Audit Report in HRS
- Running and Analyzing the FLSA Exempt Compliance Report in HRS
- Running the Single Active Record FLSA Query in HRS
- Reviewing and Updating FLSA Status for Employees With Multiple Job Records in HRS
- Updating FLSA Threshold Exemption Field in HRS