Special Pay Categories

Overtime Pay
Nonexempt Employees
Nonexempt employees are subject to the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). Overtime pay is one and one-half times the regular hourly rate of the employee for any work done in excess of 40 hours in one workweek. A workweek is defined by the Fair Labor Standards Act (FLSA) as a period of 168 contiguous hours during seven consecutive 24-hour periods.

The Fair Labor Standards Act (FLSA) allows employers to set their own workweek as long as it consists of seven consecutive 24-hour periods. At the University, the workweek begins on Sunday at 12:00 a.m. and ends on Saturday at 11:59 p.m. A record of actual hours worked must be maintained for nonexempt employees. The supervisor must authorize overtime before the time is worked.

To determine whether overtime pay is owed to a nonexempt employee for hours worked in excess of 40 in one workweek, only hours actually worked are counted. A bona fide meal period (when a nonexempt employee is completely free from duties) and hours in which the employee received compensation but did not actually work (such as holiday pay, annual leave, or sick leave) are excluded from the calculation

The University does not pay overtime for work exceeding eight hours in a single day unless a contract specifies otherwise. However, if the total hours worked during the workweek exceed 40, overtime will be paid.

To obtain an exception to the convention regarding no overtime pay for work exceeding eight hours in a single day, a supervisor must submit a written request in advance to the Director of the Department of Compensation Administration, with the approval of the appropriate Vice President or Dean, stating the specific instance or period of exception.

Nonexempt employees with a regular workweek of 35 hours will be compensated at their regular hourly rate for hours worked over 35 up to a maximum of 40 in any one workweek. All hours exceeding 40 in a workweek must be paid at the rate of one and one-half times the regular hourly rate.

Nonexempt employees in more than one position who work more than a combined total of 40 hours in a workweek must be paid overtime pay for hours worked in excess of 40 at one and one-half times the employee's regular hourly rate. The regular hourly rate in such situations is calculated by adding all pay from all rates for all hours worked and then dividing that amount by the total number of hours worked in all positions.

When the workweek includes hours for which premium pay is owed, premium pay will be included with other compensation to determine the regular hourly rate on which overtime pay is calculated, unless otherwise provided by law. However, premium pay generally will not be provided for any hours for which the employee is entitled to overtime pay.

Exempt Employees
Exempt employees are not subject to the minimum wage or overtime provisions of the Fair Labor Standards Act (FLSA). Exempt employees are paid a salary for the duties they perform, not a wage based on the number of hours they work. Supervisors must ensure that an exempt employee performs the functions defined in the classification description. Mistakenly categorizing an employee as exempt from the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) when legally the employee does not perform duties within an exempt classification, could potentially lead to liability to the University.