Establishing Rates of Pay
While the Office of Student Employment does not set wage scales for University departments, it must ensure that regulations prescribed by the Fair Labor Standards Act are enforced. Specifically, FLSA regulates minimum wage rates, overtime wage rates and methods of paying student employees.
The University must pay student employees at least the state's minimum wage rate. Minimum wage is currently $7.85 per hour in the State of Ohio.
Overtime wage rates are prescribed by FLSA to be one and one-half an employee’s hourly rate of pay. Overtime must be paid to any employee who works more than 40 total hours in a seven-day period. While it is rare that a student employee will work enough hours to require overtime wages to be paid, you must pay the overtime rate should the employee work more than 40 hours in a seven-day period.
FLSA also regulates the method by which employees are paid. Student employees must be paid an hourly rate of pay. FLSA prohibits paying student employees a stipend in nearly every circumstance. Stipends can only be used for career-related employment, usually reserved for residency programs for graduate students.