5.1.2: Employment Classification Definitions

All positions, whether full-time, part-time, or temporary, carry a classification of either exempt or non-exempt as determined by the Fair Labor Standards Act (FLSA). The FLSA is a Federal law, administered by the U.S. Department of Labor, which specifies minimum wage and overtime requirements for employees considered to be subject to, or non-exempt from its provisions.

Non-exempt employees are employees, who based on the duties performed and the manner of compensation, are required to account for time worked, sick leave and vacation on an hourly and fractional hourly basis. The FLSA requires that these employees be paid overtime at a rate of “time and ½” for actual time worked in excess of 40 hours per week.

Employees not covered by the law, as determined by the duties performed and the manner of compensation, are considered to be exempt from the FLSA minimum wage and overtime provisions. Generally, an exempt employee is a person who holds an executive, professional, or administrative position. Exempt employees are paid an established monthly or annual salary and are expected to fulfill the duties of their positions regardless of the hours worked. They do not receive overtime or compensatory time for working more than 40 hours in a work week. The final determination is made based on guidelines outlined in the law.

For the purpose of salary administration, employment and other personnel matters, every employee is classified under one of the following categories: