FLSA Resources for Managers

To some employees, transitioning from exempt to nonexempt may feel like their stature at the university has changed, which can have an impact on morale.

Talking points for discussing with employees:

• Explain the intent of the law - it is intended to protect workers. Remember that FLSA is a federal law with which the university must comply.
• Remind the employee that most other employees likely would not know another's exempt or nonexempt status.

Because employees moving from exempt to nonexempt will need to track their hours in quarter-hour increments, many employees will perceive a loss of flexibility.

Talking points for discussing with employees:

• Clarify your expectations about working flexibly. For instance, will employees be expected to work 8:00 AM - 5:00 PM, or can they work 9:00 AM - 6:00 PM? Which schedule deviations will need to be cleared by you and which will not?

Related to Concern 1 regarding employee morale and status, employees may perceive that transitioning from exempt to nonexempt will negatively impact their career.

Talking points for discussing with employees:

• Explain that moving from one exempt status to the other should not have any impact on future career opportunities.

To some employees, transitioning from nonexempt to exempt may trigger concerns about regularly working more than 40 hours per week. Although no additional pay is required to compensate exempt staff for additional hours worked, departments should not regularly expect an employee to work significantly more than 40 hours in a week. Routinely working long hours may eventually lead to burn out, resentment and loss of productivity.

Talking points for discussing with employees:

• Clearly articulate schedule expectations – what does a “normal” week look like? How will each of you address or communicate about alterations to the expected work schedule?
• Encourage your employee(s) to communicate concerns and seek clarity when needed.

Because employees moving from nonexempt to exempt may be accustomed to earning overtime, they may regret the shift to being salaried if the expectation is that they complete the same work for “less” money. Even if the workload is reduced, they may be used to having additional earnings.

Considerations:

• Is it necessary for the employee to regularly work more than 40 hours in a workweek?
• If so, you may consider a few avenues:
  • Is it possible to increase the employee’s base salary to account for the loss in overtime earnings?
  • Is it possible to adjust the employee’s workload?
  • Are there efficiencies that could be gained by streamlining or reducing redundancies?

One of the most practical differences for newly exempt (salaried) employees to adapt to is in using paid leave. Unlike nonexempt (hourly) staff, exempt employees will use paid leave in four (4) hour increments.

Talking points for discussing with employees:

• Provide direction for using the timekeeping process in place within your department. Enlist the help of your HR Liaison if you need direction or assistance.

This activity is considered worked time, and must be recorded and paid. Depending on the number of hours the employee has worked that week, this may also trigger overtime pay for any hours over 40 in the workweek, regardless of whether you approve the overtime or not. Remember, employees must be paid for time worked. As a manager, you will need to be clear about your expectations about working overtime, reminding employees that checking email at home is considered working.

In this case, the employee would not receive overtime pay because the total hours worked in the workweek did not exceed 40 hours. FLSA is based on the total hours worked (approved or not approved) in the workweek, not the number of hours worked per day.

Travel for nonexempt employees is often considered work time, but the rules can be complex. For instance, the rules for what is considered work time are different for travel during the day than for overnight travel. In general, know that travel time should be tracked, and may be compensable time. To learn more about travel, refer to the FLSA FAQs, PPM 4220.080 and/or consult with your Human Resources liaison.