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Fair Labor Standards Act (FLSA)

Policy
Procedure
Guideline
Purpose: 

Outlines the application of Fair Labor Standards Act (FLSA) for position designations as exempt (salaried) or non-exempt (hourly) from overtime compensation. 

Applies to: 

All positions

Campus: 
Lawrence
Policy Statement: 

The FLSA establishes standards for minimum wages, overtime pay and exemption therefrom, recordkeeping, and child labor. The FLSA designation of positions as either non-exempt (hourly) or exempt (salaried) is determined by the Department of Human Resource Management (HRM) at the time a position description is created, when a vacancy occurs, or when duties are changed.

The position review by HR determines if the responsibilities, duties, and required qualifications meet the exemption from overtime requirements established by federal law.  The employment categorization of a position (i.e., Faculty, Unclassified Academic Staff, Unclassified Professional Staff, and University Support Staff) does not factor into the FLSA determination, nor do the work hours/schedule assigned to the position. The classification of a position as exempt under FLSA does not determine the level of professionalism required by the position, rather only that the position has met the exemption criteria. The differences between exempt and non-exempt status are noted below.

Exempt:  Positions may be designated as "exempt" (salaried) under the federally defined Executive, Professional, Administrative, or Computing provisions of the law. Individuals appointed to exempt positions are paid on a salaried basis, and are expected to work the hours necessary to complete the work required of the position.  Departments may establish core work hours and/or work schedules for exempt employees. Positions with exempt status are not eligible for overtime or compensatory time.  For time and leave purposes, leave hours are recorded in full or half-work day increments (e.g., 8 hours for full-time appointments or 4 hours for 50% time appointments).

Non-Exempt:  Positions designated as "non-exempt" (hourly) are paid on an hourly basis for hours worked.  Such positions are eligible for overtime and/or compensatory time.  Hours are reported in quarter hour increments for reporting purposes.

Example:

Minutes Worked       Hours Recorded
0-7                               0.00
8-22                             0.25
23-37                           0.50
38-52                           0.75
53-60                           1.00

Exclusions or Special Circumstances: 

Leave taken for persons appointed to exempt positions may be reported on an hourly basis if FMLA or workers’ compensation leave is taken.

Consequences: 

Positions that are incorrectly designated under the provisions of FLSA may leave the University liable to sanctions.

Contact: 

Department of Human Resource Management
103 Carruth-O’Leary Hall
1246 W. Campus Road
Lawrence, KS 66045
785-864-4946
hrdept@ku.edu

Approved by: 
Director, Human Resource Management
Approved on: 
Tuesday, February 12, 2008
Effective on: 
Tuesday, February 12, 2008
Review Cycle: 
Annual (As Needed)
Definitions: 

Exempt (salaried) position: A position that has been designated under provisions of FLSA as meeting the criteria for the Executive, Professional, Administrative, or Computing exemption from overtime. Persons appointed to exempt positions are paid on the basis of getting the job done, regardless of the time required to complete job duties. Such persons are ineligible for overtime compensation.

Non-exempt (hourly) position: A position that is not exempt from the overtime provisions of the FLSA. Persons appointed to non-exempt position are paid on an hourly basis for time worked. Such persons are eligible for overtime compensation at the rate of one and one-half hours for every hour worked over 40 hours in the work week.

Keywords: 
Salaried, exempt, hourly, non-exempt, FLSA
Review, Approval & Change History: 

03/08/2017: Updated the Date Last Reviewed field. 

10/20/2015: Formalizes practice that HRM has authority for FLSA designation for positions. 

01/23/2015: Policy formatting cleanup (e.g., bolding, spacing).

Personnel: Faculty/Academic Staff Categories: 
Workplace Rules & Guidelines
Personnel: Staff Categories: 
Workplace Rules & Guidelines
Personnel: Student Employees Categories: 
Workplace Rules & Guidelines

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