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Fair Labor Standards Act
- The federal Fair Labor Standards Act governs, among other wage and salary matters, employees' eligibility for payment of premium overtime (time-and-a-half).
- Some employees can be designated as "exempt," meaning that they are not eligible for, and we are not required to pay, premium overtime or compensatory time off (CTO). Several criteria must be met for an employee to be considered exempt:
- The responsibilities assigned to the employee must require regular use of independent judgment and discretion.
- The employee's job must fall into one of these 3 categories:
- Executive: the primary duty is management; the employee supervises at least two employees; the employee has authority for hiring, firing, promotions, etc.
- Administrative: the primary duty is directly related to management policies or general business operations; the work is of substantial importance to management.
- Professional: the primary work requires knowledge of an advanced type in a field of science or learning, acquired through a prolonged course of specialized instruction and study.
- Exempt employees track their time in one-day increments and are not eligible for shift differential or other ancillary pay. They are paid a fixed salary per pay cycle, with greater emphasis placed on meeting the responsibilities assigned to the position than on working a specified number of hours. The workweek for full-time exempt employees is normally considered to be 40 hours.
- Non-exempt employees are paid hourly and track their time in 15-minute increments. They must be paid premium overtime and CTO for approved hours worked in excess of 40 in a work week (unless otherwise specified by a union contract), and may be eligible for ancillary pay.
- Check the appropriate contract or policy, usually under the "hours of work" article, for compensatory time off agreement requirements. Necessary forms can be obtained at www.hr.ucdavis.edu/Forms.