Federal Wage and Hour Laws Specify Exemption Status
Non-Exempt and Exempt Job Classifications
All positions are designated as either "exempt" or "non-exempt" in accordance with federal wage and hour laws.
A non-exempt designation indicates that employees in these classifications are paid on a hourly basis and not exempt from the provisions of the laws, including overtime pay requirements. Hours worked in excess of 7.5 (or 8) hour per day or 37.5 (or 40) per week are considered overtime. All employees not classified as exempt must, earn compensatory time or be paid overtime.
An exempt designation indicates that employees are exempt from these overtime provisions. Exempt employees are paid on a salaried basis and are not entitled to receive overtime compensation or compensatory time.
Criteria for Exemption
Under the FLSA regulations, a position is classified as exempt (salaried) only if the position meets the following tests:
- Salary Basis – salary is not reduced for quality or quantity of work
- Salary Test – no less than the federally required semi-monthly rate; cannot be prorated for part-time. Exceptions to the salary level test are provided for employees who fall into specific categories – primarily teachers, doctors, lawyers, academic administrative personnel and outside sales. Those categories of employees do not need to meet the salary level test.
- Duties Test – determined by Human Resources based on the job description on file and guidelines provided by the Department of Labor.