This FAQ addresses commonly asked questions about the federal Fair Labor Standards Act (FLSA), including its applicability to Community Action Agencies (CAAs). It provides an overview of key FLSA principles and discusses the exemptions CAAs most frequently use to classify employees as “exempt” from minimum wage and overtime pay, including specific exemption issues for Head Start teachers.
A new Overtime Rule issued by the U.S. Department of Labor (“DOL”) will take effect on July 1, 2024, and is estimated to make an additional 1 million workers eligible for overtime pay in the initial update in July, and an additional 3 million workers eligible for overtime pay in the subsequent update in January. See CAPLAW’s FAQ, Complying with the New Overtime Rule Under the FLSA, for more information about the impact of the Overtime Rule and strategies for implementing the changes.