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HR Compensation: FLSA/EEO Designation

Date approved:
April 2012
Approved by:
Date to be reviewed:
March 2013
Reviewed by:
University Executive Administration
Date revised:
Revision number:
Compliance Committee:
As Scheduled


To help employees understand the guidelines in both the federal Fair Labor Standards Act (governing who can be compensated as an "exempt" employee and who must be compensated as a "non-exempt" employee) and the EEO-1 Job Classification Guide (governing who is a manager, professional, etc, as determined by the Equal Employment Opportunity Commission).


2.1 The Fair Labor Standards Act ("FLSA") of 1938 provides that employees:

  1. Must be compensated at no less than the prevailing minimum wage;
  2. Must be compensated at a rate no less than their prevailing hourly rate of pay plus an additional one half hour for all hours worked in excess of forty (40) in the workweek ("overtime"). There is no requirement of additional compensation for Saturday, Sunday, holidays or off hours.
  3. Positions are either "Exempt" from the overtime requirements of the FLSA or "Non-Exempt".
    • "Exempt" position are paid a salary and are exempt from minimum wage and the overtime requirements of the FLSA per prescribed US Department of Labor determinations. They are not compensated for any hours worked in excess of forty (40) in the workweek;
    • "Non-Exempt" positions are paid an hourly rate of pay, must account for all days and hours at the workplace and are eligible for overtime.

2.2 Positions identified under the following classes may be "Exempt" from overtime provided that they meet the government's definitions and requirements of the FLSA ("exempt" status):

  • Executive
  • Administrative
  • Learned Professional
  • Creative Professional
  • Computer Professional
  • Outside Sales

2.3 All positions are considered "non-exempt" unless they meet the FLSA criteria for an exemption. Consequently unless a position is designated "exempt", the employee in that position will be designated as a "non-exempt" employee and compensated for all hours worked in excess of forty (40) in the workweek (overtime). The workweek is defined and will not be changed except by University directive.

2.4 Pay grades are designated "Exempt" or "Non-Exempt". All positions placed in an "Exempt" pay grade are considered "Exempt"; all positions placed in a "Non-Exempt" pay grade are considered "Non-Exempt".

2.5 "Exempt" status is determined according to the FLSA criteria and is not determined arbitrarily.

2.6 The University commonly refers to all Exempt positions as "Administrative" and all Non-Exempt as "Staff".

2.7 The Equal Employment Opportunity Commission (EEOC) has developed a Job Classification Guide to aide in reporting employees by position/classification on the EMployer Information Report EEO-1. This same classification system is also used by the COllege & University Professional Association (CUPA) to report employees by position. Either one or both of these reports is mandated by the federal government if the University is a recipient of federal funding.

2.8 The EEOC data defining position titles may not coincide with the University's definition of that title or the FLSA.

2.9 "EEO" status is determined according to the EEOC guidelines and is not determined arbitrarily.

2.10 Position titles are identified per one of the following classification:

  • Executive/Senior Level Officials and Managers
  • First/Mid Level Officials and Managers
  • Professionals
  • Technicians
  • Sales Workers
  • Administrative Support Workers
  • Craft Workers
  • Operatives
  • Laborers and Helpers
  • Service Workers

2.11 Job descriptions will note both the FLSA nd EEO determinations for each position.

2.12 Approval

  1. Both exempt/non-exempt status and EEO status must be approved by Human Resources.
  2. Compensation practices governing non-exempt employees are established by the Payroll Department. All timesheets must be approved by an employee's supervisor before Payroll can process an employee's pay; all hours worked in excess of forty in the workweek must be pre-approved by the employee's supervisor prior to the work being performed. Any questions regarding payroll practices must be directed to the Payroll Department.


The Director of Human Resources has the authority to change, modify or approve exceptions to this policy subsequent to review by the Chief Financial Officer and the University's Executive Administration team with the approval of the University President.


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