EXEMPT VS. NONEXEMPT EMPLOYEES
The Department of Labor classifies employees in one of two categories--exempt or nonexempt. The following summarizes the primary differences in the two categories.
Exempt employees hold positions that are not protected or covered by the Fair Labor Standards Act. Individuals in this category earn a minimum of $23,660 annually or $455 per week, regardless of the percent of full time (FTE) worked. Exempt employees have established core hours and are expected to work their full work week schedule as defined by their supervisors. Exempt employees are required to report time taken off for vacation or sick leave purposes in half-day increments on their monthly exception time reports. Exempt employees are ineligible for overtime compensation and are paid on a monthly basis.
Nonexempt employees are employed in positions covered by the Fair Labor Standards Act and are protected under this umbrella of legislation. Like exempt employees, nonexempt employees have a defined work schedule and core hours as determined by their supervisors. Nonexempt employees are required to report all hours actually worked, as well as all hours taken for vacation and sick leave purposes on their time sheets. Nonexempt employees are eligible for overtime compensation for all hours actually worked in excess of the employees’ standard full-time work week schedule.
Employees are deemed nonexempt or exempt based on the position held and the actual key duties and responsibilities being performed by the incumbent in that position. Each position is reviewed carefully by the university’s compensation administration team, and a thorough analysis of the job is conducted.
Questions regarding a position’s exempt or nonexempt status should be directed to Cheryl Avera, Director of Compensation and Records, or to Eva Morris, Compensation Analyst, in Workforce Management Organization.