Basic Information on FLSA and the Redfinition Process

What do the terms “non-overtime eligible” or “exempt” mean?

The terms “exempt” and “non-exempt” are confusing to many people.  They denote what the employer’s duty is with respect to the payment of overtime. 

Non-overtime eligible or exempt means that the employee is exempt from the provisions of the Fair Labor Standards Act (the “FLSA”) that require the payment of overtime. An employee in such a position is often called “exempt”.

What do the terms “salaried overtime eligible” or “non-exempt” mean?

Salaried overtime eligible or non-exempt means that the employee is not exempt from these provisions of the FLSAand such an employee must therefore be paid overtime for hours worked beyond 40 hours in a workweek. 

What factors determine whether an employee is salaried overtime eligible or not?

Generally, under the FLSA, employees who work over 40-hours in a workweek are overtime eligible unless their primary job duties fall within one of the four main categories of exemption available under the law: Executive, Administrative, Professional, and Outside Sales. The determination as to whether an employee's job duties fall within one of the exempt categories is not always clear.  Minimally, to be exempt from overtime the employee, typically, must be paid at least $455 per week and spend a significant portion of time performing job duties described below.

An Executive category employee's primary duty is the management of a department or subdivision in which the employee is employed; who regularly supervises or directs the work of two or more employees; and who has the authority to hire or fire employees or whose recommendations are given significant weight in employment decisions.

An Administrative category employee primarily performs office or non-manual work directly related to management or the general business operations of the employer and who exercises discretion and independent judgment in matters of significance (for example someone who applies management policies).

A Professional category employee performs work primarily requiring advanced knowledge in a field of science or learning and the advanced knowledge must customarily be acquired by a prolonged course of specialized intellectual instruction (e.g., doctors, lawyers, CPA's ). 

Alternatively, an employee could be classified as a professional if his/her primary duty is one requiring invention, originality or talent in a field of artistic or creative endeavor.  Certain categories of computer employees such as programmers, systems analysts and software engineers can be classified as Professional employees, as well, and be exempt from overtime.

How was it determined that my position would become overtime-eligible?

In light of the Department of Labor (DOL) final regulations amending the overtime pay exemption tests under the FLSA, the Department of Human Resources conducted a review of M&P titles and their definition under the Fair Labor Standards Act (FLSA).  Working with the General Counsel’s Office and outside experts, a review of salaried staff positions in the entry-level M&P grades was performed in order to determine whether the employees who hold these jobs should be eligible for overtime pay.

As a result, the University is making a number of salaried, entry-level managerial and professional positions eligible for overtime. The University has determined that most positions in the following job titles in the entry M&P salary grades will become salaried overtime-eligible effective July 1, 2006:

Title                                                               

Accountant 1                                                           
Administrative Associate                           
Clinical Practice Specialist                                   
Coordinator 1                                               
Crew Rigger                                                 
Alumni Affairs Officer 1                             
Assistant Audio Visual Producer             
Grant Administrator                                    
C&IS Support Specialist 1                         
C&IS Support Specialist 2                         

If an employee or supervisor believes the decision to redefine the employee’s position as overtime eligible is incorrect, he or she should contact the appropriate Human Resources representative. The Human Resources Representative will then decide whether further review is necessary.

What changes are being made?

At Yale, full time M&P employees who become overtime-eligible as a result of this review will be paid overtime beginning July 1, 2006 for hours they are required by their supervisor to work beyond their regularly scheduled hours (either 37.5 or 40 hours). In addition, full-time M&P employees will receive a one-time overtime payment covering that part of the period from the August 23, 2004 effective date of the new regulations through June 30, 2006 during which they have been in a redefined position.

Part-time M&P employees will receive a one-time payment for hours worked beyond their normal schedule covering that part of the period from the August 23, 2004 effective date of the new regulations through June 30, 2006 during which they have been in a redefined position.

What happens if I request a review and Human Resources determines that my position should remain exempt?

In that event, you will have to return the one-time overtime payment for the period beginning August 23, 2004. Your job title might also change in order to avoid confusion with newly overtime-eligible positions.

What is the deadline for submitting a request for review of my position redefinition or the calculation of my one-time payment?

We are providing the opportunity to request a review of either your redefinition into an overtime-eligible position or the calculation of your one-time overtime payment until July 31, 2006.