Overview: Understanding Exempt to Non-Exempt Status Changes
What Changes
If your job title changes to non-exempt, your exemption status will change from exempt to non-exempt. If you are non-exempt, you will:
- receive hourly pay
- record the hours you work (including start and end times)
- record your leave time
- need to get permission before working hours outside of your approved schedule
- receive overtime pay or compensatory (comp) time off (if eligible)
- earn a premium pay rate (time and a half) for every hour you work over 40 hours in a work week (Sunday through Saturday), or
- earn 1.5 hours of compensatory time credits for every hour you work over 40 hours in a work week
- Hours worked do not include paid time out of the workplace (for example sick leave, vacation time, etc.)
- You must get pre-approval for overtime or compensatory time
What Stays the Same
Changing to a non-exempt status does not change your:
- job responsibilities
- current base pay rate
- benefits
- employment category
- operational area
Impacts to Benefits, Leave and Other Changes
Why Exemption Status May Change
Employees may change exemption status for various reasons. Below are some examples of why your status may change. Employees may change exemption status as a result of a salary change or due to a title change as a result of the TTC Project.
If you do not know why your status is changing please contact your local HR.
Change Due to Salary
The U.S. Department of Labor ruled to increasing the minimum salary threshold to $684 per week, $35,568 per year for a full year worker.
If an employee’s salary is less than $684 per week or $35,568 per year for a full year, in most instances they will be classified as non-exempt according to the U.S. Department of Labor. For more information view the Exempt to Non-Exempt Changes Due to Salary FAQs.
Change Due to Job Title
As a result of the Title and Total Compensation (TTC) Project, you and your supervisor or local Human Resources contact are talking about a possible change to your:
- job title
- position description
- exemption status under the Fair Labor Standards Act (FLSA)
The university reviewed the exemption status for all proposed new job titles as part of the TTC Project. According to U.S. Department of Labor and FLSA guidelines, your proposed new job title is a non-exempt title. For more information view the Exempt to Non-Exempt Changes Due to a Job Title Change FAQs.
Definitions
Exempt status: Exempt positions are considered salaried positions that do not normally receive additional compensation for overtime work. Employers pay you a salary instead of an hourly wage.
Non-exempt status: Fair Labor Standards Act (FLSA) regulations protect your position. By state and federal law, you must receive overtime pay if you work more than 40 hours in a work week. Employers pay you on an hourly basis.