Overview: Understanding Non-Exempt to Exempt Status Changes
If your exemption status changes to exempt you:
- do not usually receive overtime pay for working more than 40 hours in a work week
- are paid a salary
With a salary, you receive the same pay every week. Your pay does not change based on the number of hours you work.
What Stays the Same
Changing to exempt status does not change your:
- job responsibilities
- current base pay rate
- benefits (see note on change in vacation accrual)
- 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 will 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 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 statusunder the Fair Labor Standards Act (FLSA)
The university reviewed the exemption status for all proposed new job titles. According to U.S. Department of Labor and FLSA guidelines, your proposed new job title is an exempt title.
Change Due to Salary
The U.S. Department of Labor ruled to increase 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 Non-Exempt to Exempt Changes FAQ.
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.