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Employee Classifications and Related Policies

Andrea Tibbetts

Created on July 18, 2025

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Transcript

EMPLOYEE CLASSIFICATIONS

Understanding employee classifications and related policies

All employees are classified as either exempt or nonexempt in accordance with the Fair Labor Standards Act (FLSA). This classification affects how employees are paid and their eligibility for overtime compensation.

EXEMPT EMPLOYEES

  • Paid salary
  • Submit weekly timecards only if required by a grant
  • Ineligible for overtime

NON-EXEMPT EMPLOYEES

  • Paid hourly
  • Submit weekly timecards
  • Eligible for overtime

TIMEKEEPING

EXEMPT EMPLOYEES

  • Only those on restricted grants must track and submit timecards

NON-EXEMPT EMPLOYEES

  • All work time must be logged accurately in the system, including any overtime worked regardless of whether it was pre-approved
  • A standard work week include 37.5 hours of work plus 2.5 hours (30 minutes/day) meal break

OVERTIME

EXEMPT EMPLOYEES

  • Ineligible for overtime

NON-EXEMPT EMPLOYEES

  • Overtime paid for hours worked above forty per week at 1.5x regular rate of pay
  • Overtime must be approved in writing in advance by manager
  • No work may be done outside of work hours if such activity would result in overtime (including checking email and chats)

BREAKS

NON-EXEMPT EMPLOYEES & EXEMPT EMPLOYEES

  • Some key staff members may be required to work during the summer and/or winter breaks based on business needs
  • Employees who work during these breaks should take this time at another point in the year to make up for days worked during break