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3.30 / Exempt and Non-Exempt Employees

Purpose:
The purpose of this statement is to set forth University policy with regard to determinations made regarding University compliance with the Fair Labor Standards Act.

Preamble:
The Fair Labor Standards Act was enacted by Congress in 1938. It requires that certain types of employees [those who are non-exempt from application of the law] be paid a minimum wage and an overtime wage of one and one-half times the employee's regular rate for all hours worked in excess of forty in any workweek. The Fair Labor Standards Act exempts certain classifications of employees [those who are exempt from application of the law] from its minimum wage and overtime provisions and these employees generally work whatever hours each week are required to perform their duties and responsibilities without consideration for overtime pay or time off.

Policy Statement:

1.  The determination of what positions are exempt and non-exempt from application of the Fair Labor Standards Act (FLSA) is to be made by the University's Office of Human Resources.

2.  Positions will be reviewed annually by the Director of Human Resources, or the Director's designee, to assure compliance with FLSA guidelines. The Director or designee will also request selected positions for review, and after consultation with the appropriate Vice President, update or revise the FLSA status as required. 

3.  Advance review by the Office of Human Resources to determine FLSA status is required with regard to the creation and/or establishment of any new position at the University.

4.  The Office of Human Resources shall also review any proposed changes made to the duties and responsibilities of a previously existing position to determine the FLSA status of the revised position.

5.  Before a vacant position can be advertised, the hiring department must provide an updated position description to the Office of Human Resources for an FLSA review and determination. 

6.  Any questions or concerns about the determinations made by the Office of Human Resources regarding the FLSA status of a position shall be reviewed with the University's Vice President for Administration and Finance.

7.  Unless overtime pay is approved, in advance, by their Budget Officer, employees who are not exempt from the FLSA shall receive compensatory time off at the rate of one-and-one-half hours for each hour worked over 40 hours in any workweek. For the purpose of this act, the University's workweek begins at 12:01 a.m. Sunday and ends at midnight the following Saturday. Compensatory time off shall not exceed a total of 120 hours (80 hours of actual work time) at any point in time and should be used in a reasonable period of time, generally within a twelve-month period from when accrued. Any accrued compensatory time shall be paid to the employee upon termination of employment. Use of compensatory time should be scheduled with the unit's budget officer. Hours worked in excess of eight hours in one day may be used at straight time within the same regularly scheduled forty-hour workweek. For example, within the same workweek an employee works eight hours for three days, ten hours one day and six hours the last day. No compensatory time credit is established in this example because the hours total 40 hours for that workweek. Non-exempt employees must complete biweekly an "Exception  Reporting" form which is to be approved by the immediate supervisor then forwarded to the unit's payroll representative for entry onto the University's timekeeping system on a biweekly basis.

Implementation:
This policy shall be included in the WSU Policies and Procedures Manual and shared with appropriate constituencies of the University.

The Vice President for Administration and Finance shall have responsibility for publication, dissemination and implementation of this University policy.

Effective Date:
July 14, 2008

Revision Date:
September 1, 2010
August 15, 2011

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