Exempt and Non-exempt Employee Classification

The Department of Human Resources Management determines the FLSA status of each job title by applying the tests.

 

Frequently-Asked Questions
What are the occupational categories of these employees?
NON-EXEMPT	As defined by the United States Department of Labor, non-exempt staff positions are those in the following occupational categories: Clerical/Secretarial Technical/Paraprofessional Skilled Crafts Service Maintenance Temporary Employees
EXEMPT	The following occupational categories and positions are exempt from the Fair Labor Standards Act: Executive, Administrative, Managerial Faculty Other Professional Graduate Assistant, Graduate Research Assistant, Intermittent, and other Student Employees
How does an employee know whether their position is exempt or non-exempt.
NON-EXEMPT	At the time of employment, the hiring department should tell an employee that the position is non-exempt. The letter of offer will state whether the department pays overtime or grants compensatory time. The hiring department should tell the new hire the projected extent of overtime work and the time of year it will most likely occur.
EXEMPT	At the time of employment, the hiring department should tell the employee that the position is exempt, and this fact should be included in the letter of offer.
Do these employees earn overtime or compensatory time? The work week at MSU begins at 12:01 AM on Sunday and runs to 12:00 midnight the following Saturday.
NON-EXEMPT	Yes, if they actually work more than 40 hours in a work week. Hours taken as leave with pay, compensatory time off, and approved university paid holidays are not counted as hours worked.   Example: During a work week, an employee     Worked 10 hours each day for 3 days 30 hrs. Took one day of personal leave 8 hrs. There was one university holiday 8 hrs.   46 hrs.
	The employee actually worked 30 hours, not 46, because the personal leave and university holiday hours are not counted as time worked in computing overtime. The employee would receive their regular hourly rate of pay (straight) pay  for all 46 hours in the work week above. If the employee earns compensatory time in lieu of overtime, they would accrue 6 hours of compensatory time.
EXEMPT	No, even though they may work more than 40 hours in a work week.
Are these employees required to keep an accurate record of hours worked?
NON-EXEMPT	Yes. Federal law requires that employers maintain accurate records of hours worked for all employees who work in non-exempt positions on a full- or part-time basis. The time report must accurately reflect time worked on an hour-for-hour basis. CAUTION: A non-exempt employee is considered to be working if they are performing any element of their job. So, if an employee remains at their desk during the lunch hour, but is required to perform tasks such as answering the departmental phone, they are working. Supervisors can ask the employee to leave the work area during the lunch break. An employee should account for all hours not worked by using personal or major medical leave, compensatory time, or leave without pay.
EXEMPT	No
Are part-time employees eligible for overtime?
NON-EXEMPT	MSU non-exempt employees who regularly work less than 40 hours a week are not eligible for overtime or compensatory time unless they actually work more than 40 hours in a work week. Example: John normally works 20 hours per week. If he works 25 hours in a week, he is not eligible for either overtime or compensatory time because he has not worked more than 40 hours in a work week.
EXEMPT	No.
What is the MSU work week? The standard workweek at Mississippi State University begins at 12:01 a.m. on Sunday and ends at 12:00 midnight on the following Saturday. Days off may not be shifted from one week to another in order to avoid overtime compensation.
Most MSU employees work five days a week. Can a department allow employees to work a modified schedule, such as four 10-hour days?
NON-EXEMPT	Yes. The department can allow non-exempt employees to work a modified schedule. The agreed-upon schedule should fit the business needs of the unit and be documented in writing.
EXEMPT	Yes. The schedule must be agreed upon by the employee and the supervisor. Example: An employee is required to work a weekend event. Before the work week begins, the employee and supervisor may agree on an adjusted schedule to offset some of the weekend time the employee will work.
Can a department adjust a work schedule so that the non-exempt employee does not work over 40 hours in a work week?
NON-EXEMPT	Yes. For example, if an employee has worked ten hours each day on Monday, Tuesday, and Wednesday, then eight hours on Thursday, the department may limit the employee to two hours of work on Friday - for a total of 40 hours worked in the work week.
EXEMPT	Not applicable.
How is compensatory time calculated?
NON-EXEMPT	Compensatory time off is calculated at the rate of one and one-half times the hours actually worked in excess of 40 hours during a work week. Example: During a work week, an employee worked 8 hours each day for 6 days, or 48 hours. The 8 overtime hours should be transferred to the compensatory time record at a rate of one and one-half times the number of overtime hours (8 x 1.5 = 12.00). Twelve hours will be transferred to the compensatory time record. Remember, hours of leave time with pay, compensatory time off, and university paid holidays are not counted as time worked in computing overtime. See example above.
EXEMPT	Not applicable.
Can a department require an employee to work extra time in a work week and not record the extra time on the time report?
NON-EXEMPT	No. Not recording actual time worked is a violation of federal law and MSU policy.
EXEMPT	Not applicable.
Can a department require an employee to use their accumulated compensatory time?
NON-EXEMPT	Yes. A department can require an employee to reduce their compensatory time balance by scheduling time off from work. Note: If employees are absent from work more than one day due to illness, the employee may choose to use either major medical leave or compensatory time off after taking the first day (8 hours) from personal leave.
EXEMPT	Not applicable.
Can a department pay an employee for compensatory time?
NON-EXEMPT	Yes. A department may choose to pay an employee for any part of their compensatory time. The payment must be made at the regular rate of pay received by the employee at the time of payment. Also, once the compensatory time balance reaches 240 hours, the employee must be paid for the overtime hours worked over 40 hours in a work week.
EXEMPT	Not applicable.
Is there a limit to the  compensatory time balance an employee can carry?
NON-EXEMPT	Yes. Once an employee has an compensatory time balance of 240 hours, the department must pay overtime for hours worked over 40 in a work week that is in excess of the maximum of 240 hours. Also, if the employee separates from a unit (either leaving MSU or transferring to another MSU unit), the unit is responsible for paying out the remaining compensatory time balance. Compensatory time will be paid at either the average regular rate of pay received by the employee during the last three years of employment, or the final regular rate of pay received by the employee, whichever is higher.
EXEMPT	Not applicable.

Recording Time for Non-Exempt Employees

Notice that Semi-monthly Payroll #12 ends on Friday, June 30, and that Semi-monthly Payroll #13 begins on Saturday, July 1. The payroll periods do not always begin and end with the MSU work week, which begins at 12:01 a.m. on Sunday and ends at 12:00 midnight on the following Saturday.

Recording Time on the Nonexempt Employee Semi-Monthly Time Report