What is the difference between exempt and non-exempt employees?

Resources

Policies, Procedures, Laws, Contacts Info, How To, and FAQ's
PPSM Policy 2 - Definition of Terms Wages and the Fair Labor Standards Act (FLSA)

ANSWER

Exempt employees

  • Paid an established biweekly, monthly or annual salary and are expected to fulfill the duties of their positions regardless of hours worked.
  • Not eligible to receive overtime compensation or compensatory time off
  • Exempt titles are identified in University-wide title and pay plans.

Non-exempt employees

  • Required to account for time worked on an hourly and fractional hourly basis
  • Required to be compensated for qualified overtime hours at the premium (time-and-one-half) rate.
  • Non-exempt titles are identified in title and pay plans.

Common Compensation and Classification Questions

Definitions

Exempt employees are defined as employees who, based on duties performed and manner of compensation, are exempt from the Fair Labor Standards Act (FLSA) minimum wage and overtime provisions. Because of hourly pay practices, an employee appointed to a per diem position in an exempt title is treated as a non-exempt employee subject to FLSA minimum wage and overtime provisions.

Non-exempt employees are defined as employees who, based on duties performed and manner of compensation, are subject to all FLSA provisions. Because of hourly pay practices, an employee appointed to a per diem position is treated as a non-exempt employee subject to FLSA minimum wage and overtime provisions.