Part-Time Exempt Employees

Can the minimum salary required under FLSA be prorated to reflect the part-time status of an employee?

The minimum salary required under FLSA is $35,568 per year or $684 per week.There is no provision to prorate the salary requirement of $684 per week when an employee’s hours are reduced. The employee must receive a salary of at least $684 in each week in which they perform any work regardless of the number of days or hours worked to qualify for the exemption.

How should overtime be calculated for part-time employees?

Under the FLSA, overtime premiums need not be paid to employees until they work in excess of 40 hours a week. There is no requirement in the FLSA to pay overtime for hours worked in excess of 8 hours per day. At MSU, hours that are worked in excess of the employee’s schedule should be paid at straight time. Employees should be paid overtime or granted compensatory time for hours worked in excess of 40 hours per week.

If an exempt employee’s salary doesn’t meet the minimum salary required under FLSA, what title code should they use?

When an exempt employee’s hours are reduced or is hired at reduced schedule and the employee’s salary doesn’t meets the minimum salary required under FLSA ($35,568), the employee will become non-exempt under FLSA. Departmental employees responsible for HR paperwork should contact your Human Resources Business Partner to set up a title code that is non-exempt professional to be used for the employee. The title code will begin with “PN” instead of “P”, be in 30 EEO Code, and have an EClass of HP. This will allow the employee to appear on your payroll voucher.

What are the requirements of an employee who is non-exempt professional?

The employee must track hours worked by completing a time sheet, semi-monthly time report and be paid overtime or granted compensatory time for all hours worked in excess of 40.