FLSA Status in Oracle Fusion HCM

In Oracle Fusion HCM (Human Capital Management), the FLSA (Fair Labor Standards Act) status is a classification that determines whether an employee is exempt or non-exempt from the overtime pay provisions under the Fair Labor Standards Act, a federal labor law in the United States.

The FLSA status is crucial for organizations to ensure compliance with labor laws and regulations related to overtime pay and minimum wage requirements. The FLSA status of an employee helps organizations determine whether the employee is eligible for overtime pay when they work more than the standard number of hours in a workweek.

In Oracle Fusion HCM, the FLSA status can be set for employees as part of their worker or assignment details. The available FLSA status classifications are typically:

1. Exempt: Employees classified as exempt from FLSA regulations are not entitled to receive overtime pay, regardless of the number of hours worked. Exempt employees often include salaried professionals, executives, and certain administrative or managerial roles.
2. Non-Exempt: Employees classified as non-exempt are eligible to receive overtime pay for any hours worked beyond the standard workweek (usually 40 hours). Non-exempt employees typically receive an hourly wage and must be paid overtime at a rate of 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek.

In Oracle Fusion HCM, HR administrators or managers can assign the appropriate FLSA status to each employee based on their job role, responsibilities, and labor law requirements. This information helps in accurate payroll calculations, time tracking, and reporting related to overtime pay.

It’s important for organizations to correctly set and maintain the FLSA status of their employees in Oracle Fusion HCM to comply with labor laws and ensure fair compensation for their workforce. Additionally, organizations must also adhere to any regional or local labor laws that may apply in addition to the FLSA regulations