Understanding exempt and nonexempt status: How is time and leave impacted?

Kansas State University's new time and leave system supports accurate time tracking, leave management, and transparency for both exempt and nonexempt employees. In preparation for the new time and leave system, all employees should understand how the Fair Labor Standards Act, or FLSA, affects their classification and time management.

The FLSA is a federal law that governs minimum wage, overtime pay and recordkeeping for most U.S. workers. A key component of the law is the classification of positions as either exempt or nonexempt. Understanding your position's FLSA classification helps ensure fair compensation and compliance with labor laws.

What does "exempt" mean?

Employees in exempt positions are not covered by FLSA provisions for overtime and minimum wage. These employees are typically salaried and fall into specific categories defined by the Department of Labor, or DOL.

To qualify as exempt, a position must:

• Earn a fixed salary of at least $684 per week.
• Be paid consistently, regardless of hours worked. At K-State, all exempt employees are paid on a salary basis.
• Perform specific job duties that meet the DOL's exemption criteria. HR Compensation and Organizational Effectiveness determines exemption based on a review of job duties and alignment with FLSA exemption criteria.

Exempt employees do not receive overtime pay for hours worked beyond 40 in a workweek, do not report hours worked, and must use paid time off in half or whole day increments.

What does "nonexempt" mean?

Employees in nonexempt positions are covered by FLSA protections and must be paid at least the federal minimum wage. They also receive overtime pay for hours worked beyond 40 in a workweek.

Nonexempt employees:

• Are paid an hourly rate for each hour worked. Time is recorded in quarter-hour increments. At K-State, all nonexempt employees are paid hourly, and accurate records of all hours worked must be maintained.
• Receive overtime pay, typically 1.5 times their regular rate for hours worked over 40 per week. Employees in benefit-eligible positions have the option to elect compensatory time instead of overtime pay for hours worked over 40 per week.
• Use paid time off in quarter-hour increments.

Read more about FLSA and overtime, and review travel and training scenarios on the HR website.

If you have questions about your position's FLSA classification or how your time and leave is managed, contact your unit's HR liaison or your supervisor.