Higher Education and Overtime Pay: Urgent Updates Under the Fair Labor Standards Act

Overtime pay

In the world of labor law, the question of overtime pay can be particularly tricky for educational institutions. Teachers, administrators, and other school personnel may be subject to special exemptions under the Fair Labor Standards Act (FLSA), which governs overtime pay requirements. Understanding who qualifies for overtime pay can save schools from costly legal issues and ensure employees are properly compensated for their work.

Who is Exempt from Overtime Pay in Educational Institutions?

The U.S. Department of Labor (DOL) provides specific guidelines for how overtime applies to employees working in educational settings. In order to qualify for an exemption, the employee must be paid on a salary rather than an hourly basis, must not receive a weekly wage less than the standard level set by 29 CFR 541.600, and must participate in a primary duty of work that is executive, administrative, or professional.

The most common exemption in educational settings applies to teachers. As defined under the FLSA, a teacher is generally exempt from overtime pay if their primary duty involves teaching, tutoring, or instructing students. However, there are some important factors to consider when determining whether an employee qualifies for this exemption:

  1. Primary Duty of Teaching: For the exemption to apply, teaching must be the employee’s primary responsibility. In other words, the majority of their time should be spent on direct educational activities such as classroom instruction, preparing lesson plans, or engaging with students in other academic contexts.
  2. Employees Who May Be Exempt: In addition to classroom teachers, other roles in educational institutions may also qualify for the exemption. This includes principals, administrators, and certain academic personnel whose work directly relates to teaching. In general, the more closely an employee’s duties align with the teaching or instruction of students, the more likely they are to qualify for the exemption.
  3. Excluded Roles: Some roles within educational institutions do not qualify for the overtime exemption. For example, employees whose primary duties involve administrative work, such as budgeting, human resources, or maintenance, may not be exempt from overtime pay. Additionally, student-employees such as graduate teaching assistants, research assistants, and student residential assistants may not be protected by overtime requirements due to a primary role of teaching, a lack of employment relationship, or alternative benefits systems established. 

Key Points to Keep in Mind for Employers

  1. Review Employee Job Descriptions Regularly: Since the exemption is based on the employee’s primary duties, it is important to review job descriptions and ensure that they reflect the actual duties performed. If an employee’s duties change, they may no longer qualify for the exemption.
  2. Monitor Work Hours: Even exempt employees are required to adhere to certain labor laws. For example, while teachers may not be entitled to overtime pay, they still need to be given appropriate rest periods and have access to other benefits provided under the FLSA.
  3. Seek Counsel to Ensure Legal Compliance: Ensuring that employees are correctly classified can help avoid costly lawsuits and penalties. Educational institutions should consult with legal counsel to ensure that they are in full compliance with both state and federal wage and hour laws.

What Does the Exemption Mean for Employees?

For employees working in educational institutions, understanding whether or not they are exempt from overtime pay can guide informed decisions about rights and compensation. If you are a teacher, administrator, or other academic personnel, it’s important to understand that while you may not be entitled to overtime pay, you still have access to other labor protections under the FLSA, such as minimum wage and appropriate rest breaks.

If you are in a role that doesn’t directly involve teaching or instruction, you may not be exempt from overtime pay. In this case, your employer is required to compensate you for any hours worked over 40 in a workweek at a rate of at least one and a half times your regular hourly wage.

Conclusion

Navigating the complexities of overtime laws for educational institutions can be challenging, but understanding the FLSA’s teacher exemption is a crucial step for both employers and employees. By reviewing job duties, maintaining clear records, and seeking legal advice when necessary, schools and their staff can ensure that they are compliant with labor laws and avoid costly mistakes.

If you have questions about the overtime exemption or need assistance in classifying employees properly, contact EPGD Business Law today. We specialize in wage and hour law and can help you navigate the complexities of employment law to ensure your institution stays in compliance.

 

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Founding partner Eric Gros-Dubois established EPGD Business Law in 2013. With over a decade of experience expanding the firm and leading it to its current success, Eric now primarily manages the corporate division of EPGD. Given Eric’s educational background, holding both a JD and MBA, combined with his own unique experience of starting a business from scratch and growing it to a multi-million dollar firm, he brings a specialized and invaluable perspective to those seeking legal assistance for themselves and their businesses. Having now instilled his same values in our team of skilled corporate associates, Eric leads a firm that is always ready, willing, and equipped to handle any and every legal matter that a business owner may have.

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*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.
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