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”) took effect on July 1, 2024, and temporarily increased the salary levels required for exemptions discussed in this FAQ. However, the Overtime Rule was struck down nationwide on November 15, 2024, by a U.S. District Court for the Eastern District of Texas. This court action returned all salary levels to pre-July 1, 2024 threshold amounts, as reflected in this FAQ.