2:1 Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal law that covers most employers. Its provisions define and control minimum wages, maximum hours, overtime pay, equal pay for both sexes, child labor and recordkeeping.

The FLSA identifies two types of employees: exempt and non-exempt.

Exempt employees (Princeton's monthly-paid staff). Exempt status applies only to certain types of employees - i.e., executives, administrators, professionals, highly skilled employees in computer-related occupations, and other types of employees, such as full-time students and apprentices as classified by the law. There are special requirements, restrictions and tests that are applied for each type of exemption. Exempt staff are excluded from the requirements of the FLSA for minimum wage, maximum hours and overtime pay. However, requirements regarding equal pay, child labor and recordkeeping still apply.

Non-exempt employees (Princeton's biweekly-paid staff) are covered by ALL of the Act's provisions which are described below.

Minimum Wage (applies to non-exempt employees only).

The law requires employers to pay to each of its employees covered under this provision of the Act the federal minimum wage or the state minimum wage, whichever is greater. (The New Jersey State minimum wage is greater.)

Maximum Hours and Overtime Pay (applies to non-exempt employees only).

The law requires employers to pay all employees covered under this provision of the Act one and one-half times their regular rate of pay for any time worked in excess of 40 hours in the same defined workweek. (New Jersey state maximum hours and overtime rate is the same as the federal rate).

Neither federal law nor New Jersey State law require that hours worked in excess of eight in any one workday be compensated at an overtime rate. Princeton University has chosen to pay overtime based on hours worked in one workday as an additional benefit to its employees.

Equal Pay (applies to non-exempt AND exempt employees).

The Equal Pay Act of 1963 is an amendment to the FLSA. It requires that male and female workers receive equal pay for work requiring equal skill, effort and responsibility, and performed under similar working conditions. Some exceptions may apply. (See: Appendix A: Equal Pay Act of 1963).

Child Labor (applies to non-exempt AND exempt employees).

In general, the law forbids employment of children under the age of 14, and only permits children ages 14 and 15 to work under very narrow limitations. Princeton University policy does not allow for the employment of children ages 14 and 15.

The law also applies certain restrictions to workers ages 16 and 17.

Recordkeeping (applies to non-exempt and exempt employees).

Employee records must be kept on file for inspection and review by the Department of Labor. Records required for non-exempt employees include accurate time sheets that show the hours worked each day and each workweek. Records of absences must be kept for both exempt and non-exempt employees.

Employers are required to keep these records for the amount of time specified by federal or state law, whichever is greater.

The above information is a summary only and is in no way intended to be legal advice. Furthermore, this should be read in concert with University policies and procedures. Requests for further information should be directed to your Human Resources Region Manager.