Federal law requires employers to record hours worked, to pay an hourly wage, and to compensate for hours physically worked over 40 in a workweek unless the position meets specific exemption criteria. These requirements apply regardless of whether an employee is full-time or part-time, is SHRA or EHRA, or is permanent or temporary. Failure to comply with the FLSA regulations carries substantial legal risk.
The federal Fair Labor Standards Act sets guidelines for determining which employees are subject to the overtime provisions of the Act (FLSA non-exempt) and which employees are not subject to the overtime provisions of the Act (FLSA exempt).
The exempt or non-exempt status of any particular employee must be determined on the basis of whether duties, responsibilities and salary meet the requirements for exemption. The employee’s title is of no significance in determining whether the tests are met.
Salary Basis Test
An employee will be considered to be paid on a “salary basis” if the employee regularly receives a predetermined amount of at least $455/week ($23,660 annually). Any employee paid a salary of less than $455 per week, whether full-time or part-time, EHRA or SHRA, does not meet the minimum salary basis to be FLSA-exempt. The salaries of non-exempt employees are calculated on an hourly basis and the employing department is responsible for ensuring employees’ work hours are tracked and maintained through time records. Non-exempt employees are also subject to both minimum wage and overtime requirements.
Exemptions Based on Job Duties:
- Learned Professional
- Creative Professional
- Computer Professional
- Highly Compensated Test