Exempt vs. Non-exempt - Fair Labor Standards Act (FLSA) Overtime Regulations

The Fair Labor Standards Act (FLSA) is a federal law enforced by the Department of Labor (DOL) that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees. Regarding overtime pay, employees are to receive overtime pay (or comp time in the public sector) at 1.5 times the employee’s regular rate for hours worked over 40 in a workweek, except for those designated as exempt from overtime pay.

Qualification

To qualify as exempt, an employee must satisfy all of the following three tests:

  • Be paid on a salary (not hourly) basis, AND
  • Job duties must meet the duties test for one or more of the exemption categories, AND
  • Have a salary above the minimum salary threshold.

For more information about the current exemptions, see DOL Fact Sheet #17A.

UNI complies with FLSA regulations. Merit staff are always non-exempt. Faculty whose primary duty is teaching are always exempt. Professional & Scientific (P&S) may be exempt or non-exempt, based on the criteria listed above. Questions regarding exempt vs. non-exempt status should be referred to HRS Employment staff.

A Closer Look

As of July 1, 2024 the minimum salary threshold is $844 per week ($43,888 annually). Staff who do not meet this minimum salary threshold or the other two tests noted above will be non-exempt and will receive their pay on an 'hourly' basis. These staff are eligible for overtime (or comp time) at a rate of 1.5 times the employee's regular rate of pay for hours worked over 40 in a workweek (Sunday through Saturday at UNI).

Faculty and instructional academic staff whose primary duties are teaching are exempt and are not impacted by the salary threshold test. Those who support teaching activities without actual teaching as primary duties are subject to the FLSA including the salary threshold test. For more information on this exemption, see DOL Fact Sheet #17D.

For more information, please contact hrs-employment@uni.edu or (319) 273-2422.

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