What is FLSA status in SAP PA-EC - Enterprise Compensation Management?

SAP Term: FLSA status

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Exempt status defines an employee who, based on duties performed and manner of compensation, shall be exempt from the Fair Labor Standards Act FLSA minimum wage and overtime provisions. FLSA status indicates exempt "E" or non-exempt "N" job.

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• Key Concepts: 
  FLSA status stands for Fair Labor Standards Act status. It is a classification of an employee's job position that determines the employee's eligibility for overtime pay. This classification is based on the type of work performed and the amount of time spent performing it. 
  
  How to use it: 
  In SAP, FLSA status is used to determine an employee's eligibility for overtime pay. The FLSA status is set in the Enterprise Compensation Management (ECM) component of SAP. The ECM component allows users to set up and manage employee compensation plans, including setting up FLSA statuses for each employee. 
  
  Tips & Tricks: 
  When setting up FLSA statuses in the ECM component, it is important to ensure that the correct FLSA status is assigned to each employee. This will ensure that employees are correctly classified and eligible for overtime pay when applicable. 
  
  Related Information: 
  For more information on setting up FLSA statuses in SAP, please refer to the SAP Help documentation on Enterprise Compensation Management (ECM).