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Aug08

Non-Exempt Salaried Staff in Higher Ed

We have some positions that are 9, 10 or 11 month. They will not meet exempt status under the new FLSA regs. If we reclassified to non-exempt salaried, can their pay be spread over 12 months to prevent them from going without pay for the months that they do not work?

The federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Under the FLSA, employees are classified as either non-exempt or exempt.

Non-exempt employees must be paid for all hours worked and are subject to overtime and minimum wage requirements prescribed by the FLSA.

Conversely, exempt employees receive a fixed predetermined salary for any week during which work is performed regardless of the quantity or quality of such work. Exempt employees are excluded from overtime pay provisions.

Though uncommon, a non-exempt employee can be paid a salary.

Even when a non-exempt employee is paid on a salary basis, he is still classified as non-exempt and must be treated as such per FLSA regulations. So, the employee’s time actually worked must be accurately recorded and the appropriate overtime rate must be paid for any hours worked over 40 in a given workweek.

The FLSA doesn’t require wage payments on specified dates or at specified frequencies.  However, the FLSA does require that employers pay employees due wages on the regular payday for the pay period in which the hours were worked. Also, courts have interpreted the regulations to require prompt payment of wages, though “prompt” is not clearly defined. Moreover, some states have pay date requirements for non-exempt employees.

Thus, spreading a non-exempt salaried employee’s wages over a time period is not advisable. It’s best to pay the employees on the regularly scheduled pay date for the pay period.

This entry was posted on Monday, August 8th, 2016 at 6:50 pm and is filed under
Compensation.
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