III. Employment Policies
H. Fair Labor Standards Act
Reed College is covered by the Fair labor Standards Act (FLSA), which is the federal law addressing certain wage requirements, hours of work, and overtime. Our obligation as an institution is to comply with the terms of the FLSA, which includes some specific and significant areas impacting Reed College staff. Included in these areas are:
- Executive, administrative, and professional employees are considered exempt under the FLSA and must be paid on a salary basis. Exempt employees are compensated not for the amount of time spent on the job, but rather for the general value of the services performed. The Act requires that their predetermined pay not be subject to reduction because of variations in the quantity of work performed. Exempt employees lose their exempt status when they are paid on an hourly basis or when the exempt employee's salary is reduced for a partial day absence from work.
- The Act forbids covered private employers from granting compensatory time to their non-exempt employees in lieu of overtime compensation.
- The Act requires that overtime be figured on the basis of a single work week (Sunday through Saturday) so that hours cannot be averaged over more than a week.
- There are no maximum hours limitations (e.g., restrictions on the number of hours an employee may work in one workday, workweek, or work period) for adult non-exempt employees under the FLSA. The Act merely requires overtime pay for the time worked in excess of 40 hours per week. Thus, employers can require overtime work of employees, as long as they are duly compensated for the time worked.
- Paid vacation, holiday and sick time is not included in calculating a non-exempt employee's regular rate of pay for overtime purposes. Thus, an employee would receive straight time for 48 hours of work in a single work week if on one 8-hour day the employee was on paid sick time.
- The Act requires employers to maintain and preserve for at least three years the payroll or other records setting forth the daily hours worked and total hours worked for each work week for each non-exempt employee.
last revised: 2/13/2012
last reviewed: 2/13/2012