The Minnesota Department of Health changed the Fair Labor Standards Act status of approximately 14 MGEC-represented employees from “exempt” to “non-exempt”, effective the pay period beginning May 8th. This change allows affected employees more rights under federal law about how their time is compensated and is part of a larger effort at the agency that has resulted in changed FLSA statuses for over 100 employees.
For non-exempt employees, all hours that are spent in service of the employer are strictly compensable hours. If hours are worked, they need to be recorded in time sheets – and they will be paid. If non-exempt employees go over 40 hours in a week (which, remember, for the State runs from Wednesday-Tuesday) then the excess hours will be paid at one and a half times the employee’s regular rate. And thanks to new language negotiated by MGEC in the last round of bargaining, those hours include benefitted time – sick, holiday, vacation, and comp time are now included in the 40-hour overtime threshold. So, if you put in hours on an upcoming holiday, Juneteenth – a holiday on a Wednesday, as an example, those hours will push your workweek over 40 hours when you get to the next Wednesday. If you worked 4 hours on the holiday you will be compensated 6 hours for going over 40 hours the following Tuesday. And while schedules can change periodically, changing them for the purposes of avoiding overtime is not permitted.
This will be an expansion of employee rights, but there may be items of concern as the transition progresses. While any overtime will be paid, it also needs to be approved by your supervisor. An example might be that you’re required to attend a city council meeting on a Tuesday evening. If it runs late, it’s possible that you will need to incur unanticipated overtime because you won’t be allowed to balance your hours. To prevent issues, make sure your supervisor is aware of your circumstances. And know that MGEC is here to ensure you’re treated fairly. Supervisors – both inside and outside MGEC – may need to make adjustments as this rolls out.
FLSA designation is up to the employer. But incorrectly assigning employees to the wrong status can create liabilities for the employer, particularly if the misclassification will result in the employees not being paid as they are owed. MGEC is aware that while some employees will see this change, others in the same job title will not. We intend to engage with MMB to ensure that classifications are appropriate.
MDH ran two informational sessions about this change, the last of which was on May 8th. If you weren’t able to view them, the department has them available to watch online.