Frequently Asked Questions
General Questions
No, the job your employee is slotted in is classified as exempt or non-exempt in accordance with FLSA standards.
Compensation performs a standard duty test to determine whether or not a job is exempt or non-exempt.
Compensation Study and Phase Reviews
Phase I: UH review focused on career ladder jobs with more than 100 employees.
Phase II: UH review focused on the remaining career ladder jobs.
Phase III: Consultant review will focus on the following (in order of priority);
Focus 1 – Benefits eligible filled and vacant posted positions not benchmarked in Phase I and Phase II.
Focus 2 – Career ladder jobs picked up in Phase I and Phase II.
Focus 3 – Currently unposted positions created and/or vacant within the last three years.
No Change.
Pay Grade change with salary adjustment.
Pay Grade change with no salary adjustment.
Change in FLSA status; i.e. Non-Exempt (hourly) to Exempt (salaries).
No Change.
Salary Adjustment.
Change in FLSA status; i.e. Non-Exempt (hourly) to Exempt (salaries).
Job Review Process
A reclassification is an audit/review of a position that indicates a significant change in job duties and level of responsibility and can result in a change in the job title and pay grade/level (up or down). It is a job or position (as opposed to an individual) that is reclassified; therefore, the position may be filled or vacant when reclassified.
Reclassification: A change in a position's job title and/or grade level based on a significant change in the duties and level of responsibility, as revealed in an audit or review of the job by the Human Resources Department.
- Have the employee complete a JAQ that details the job duties they are currently performing.
- Forward the JAQ to your Business Office for review and consideration.
FLSA
- The Fair Labor Standards Act (FLSA) is a federal law that establishes labor standards for public and private sector employers. The law defines a standard work week, establishes a national minimum wage, and establishes parameters for working minors. In addition, the law guarantees overtime for certain positions.
- The FLSA provides a set of standards to determine which jobs are covered by the act (non-exempt) and which jobs are not covered by (exempt). Non-exempt positions are considered hourly positions and must receive overtime pay or compensatory time for hours worked over 40 in a workweek. Exempt positions are considered salaried positions and do not normally receive additional compensation for overtime work. For more information on FLSA please refer to the US Department of Labor website.
- If an employee’s duties and pay change, or if the regulations are updated, that person’s FLSA status may change from exempt to non-exempt or from non-exempt to exempt.
- Current Guidelines (updated in 2019): minimum $692 a week or $36,000 per year.
- New Guidelines: On April 23, 2024, the DOL issued new guidelines addressing overtime provisions
of the FLSA.
- July 1, 2024, the new minimum salary threshold is $844 a week or $43,888 per year. An employee paid above the salary can be designated as exempt from overtime requirements.
- The University designates jobs as exempt or nonexempt in accordance with the FLSA guidelines. Any change to pay rates or salary must comply with federal and state laws.
- Jobs classified as Exempt must meet the following criteria:
Salary Basis test – Employees are paid on a salary basis
Salary Threshold test- Employees are paid a minimum salary
Duties test – Primary duties are consistent with standards set by DOL.
- If any of the three tests are not met, the job must be classified as non-exempt (hourly) and eligible for overtime/compensatory time.
- It’s important to remember that exempt classification is an option, not a requirement. A position that meets all three test may still be classified as non-exempt (hourly).
- Misclassifying employees can lead to legal consequences for employers. This may include backpay for unpaid wages, fines, and penalties.
- Employees changing from exempt status to non-exempt status will begin entering hours into P.A.S.S via Web Clock for hours worked beginning on July 1, 2024. Employees will receive their regularly scheduled paycheck on July 1, 2024 for time worked in June 2024.
- For time worked July 1st – 2nd employees will receive their paycheck on July 12, 2024. For time worked July 3rd – July 16, 2024, employees will receive their paycheck on July 26, 2024.
- Deductions such as insurance will be split evenly between two bi-weekly paychecks.
- A typical work week is 40 hours of regular time worked between Wednesday through Tuesday. An employee may use available leave accruals (vacation and sick leave) or available Compensatory or Equivalent time to make up the 40 hours in a work week when they do not physically work 40 regular hours.
- Per university policy, normal office hours shall be 8:00 a.m. to 5:00 p.m. Monday through Friday.
- Regular, full-time staff employees are required to work a minimum of 40 hours per week unless on paid leave status. Part-time and temporary employees are expected to work those hours designated by the employing department as necessary to fulfill the requirements of their position. Such hours of work shall be consistent with the FTE of the position.
- Under FLSA all work done for the employer is taken into account to determine whether an employee is exempt or non-exempt.
- The supervisor must provide prior approval for a non-exempt employee to work overtime. All worked time, must be compensated. Supervisors facing scenarios in which an employee works unapproved time, should speak to their assigned Sr. HR Business Partner for guidance.
A list of federal Frequently Asked Questions regarding the rule can also be found on the Department of Labor website.