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Division of Human Resources

Minimum Wage and Overtime Compensation

When it comes to minimum wage, official workweek and overtime compensation, the first thing to consider is whether an employee is exempt or non-exempt.

Exempt employees are not subject to the minimum wage, overtime or record keeping requirements of the law, whereas non-exempt employees are subject to these requirements of the Fair Labor Standards Act (FLSA).

All non-exempt employees of the university must receive at least the current minimum wage. Compensation is based on 40 hours per week or 2,080 hours per year.

The regular rate of pay can include base pay, longevity pay, temporary salary adjustments, administrative salary supplements, grant salary supplements, on-call pay and shift differentials.

Overtime pay or compensatory time is given to non-exempt employees whose actual work hours exceeds 40 hours in a week. Employees must receive approval from the authorized supervisor prior to working overtime or they may be subject to disciplinary action.

Overtime pay is 1.5 times the regular hourly rate. Compensatory time is earned at 1.5 hours for each hour worked over 40. Leave time taken does not count as time worked when calculating overtime. For questions about compensatory time, visit our Frequently Asked Questions page [pdf].

The Wage and Hour Division of the U.S. Department of Labor has outlined specific requirements that must be met in order to qualify for exemption. These requirements may be found at www.dol.gov.

Currently, employees earning less than $23,660 per year ($455 per week) are considered non-exempt and must be paid for overtime worked.  On January 1, 2020 this standard will be raised to $35,568 per year ($684 per week).

Employees earning more than the minimum threshold may be considered exempt, if their job duties are considered Executive, Professional or Administrative, Computer Professional, or Highly Compensated. Use our FLSA: Exemption Test Questionnaire [pdf] to help determine the correct exemption status.

Non-exempt employees are required to report all hours actually worked. Review our timekeeping procedures to learn where to enter time, the definition of an official workweek and what is considered compensable time.

For additional information about minimum wage, overtime or record keeping requirements, please refer to Policy HR 1.84.


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