FLSA status is set based on the job description on file for each job. It is not just based on how one receives pay (salaried or hourly pay). A highly paid employee could be non-exempt based on the job duties. All jobs are non-exempt by default—only becoming exempt if it clearly satisfies the DOL (Department of Labor) requirements for exemption.University Human Resources sets the FLSA status for all SHRA and EHRA positions.  The Graduate School sets the FLSA status for all graduate student employees and post docs.  Division and College HR professionals set the FLSA status for student and temporary employees in consultation with University HR and/or the Graduate School.

No. The term “non-exempt” simply means that the individual holding the position is eligible for overtime and must track hours worked for the purpose of ensuring proper payment. There are many non-exempt jobs that have important responsibilities at NC State. The designation of exempt or nonexempt is a legal designation and does not impact the type or importance of an employee’s work.

No.  SHRA means Subject to the State Human Resources Act and EHRA means Exempt from the State Human Resources Act.  The FLSA is a federal law that governs eligibility for overtime pay, sets the minimum wage, determines child labor laws, and establishes record-keeping requirements.

Yes. Because the FLSA status is determined by BOTH the duties test and the salary threshold, two employees in the same job title can have different statuses.

No. An employee’s title or career band alone is insufficient to establish exempt status.  Rather, whether an employee qualifies for one or more of the FLSA’s duty test exemptions generally depends on the “primary duty” of the employee performing the job and, depending on the exemption, the employee’s salary.  An employee’s primary duty is “the principal, main, major or most important duty that the employee performs.”

The salary threshold of $455/week is set regardless of FTE.  For example, someone making $300 per week at .50 FTE (20 hours per week) still falls below the threshold and would not satisfy the salary threshold test.

The US Department of Labor (DOL) proposed a significant change to the overtime components of the FLSA last year that would have raised the salary threshold to $913/week.  The change was delayed by a federal injunction. Many organizations are expecting changes to the FLSA in the next few years, but it is not yet known at this time what those changes may be or when they may become effective.

Human Resources will communicate changes to current employee statuses to leadership within each college and division. Employees whose FLSA status changes will receive written notification from their supervisors or college/division Human Resources staff.

Only time worked is counted toward the 40+ hours per week required for overtime pay and/or comp time. Time on leave such as annual, sick, bonus,  holiday, military reserve duty, family and medical leave does not count toward the 40 hours per week of time worked that is required to begin earning overtime pay.  See the travel time page for information on when travel time counts toward overtime.

No. Employees may not work any hours beyond their required work schedule without supervisory approval prior to working the hours. If an employee works the additional hours, compensation must be provided in compensatory time or overtime pay;  however, working additional hours without supervisor approval may result in disciplinary action.

No. Hours not physically worked and hours covered by paid or unpaid leave are not counted as “hours worked” for pay computation.

NC State provides additional compensation for certain permanent employees whose regular work schedules occur during evening or night hours.  To qualify for shift premium pay, more than half of the employee’s regular and recurring shift must occur between the hours of 4:00 pm and 8:00 am.  Meal times are not covered by shift premium pay and cannot be counted in determining eligibility for shift premium pay.

Supervisors are responsible for setting work hours and schedules based on the business needs of the University and their unit. Supervisors may change an employee’s hours to meet work demands and coverage needs and should work with Human Resources regarding long-term or permanent schedule changes.

Supervisors must review employee time and leave records and approve them regularly. Delays in timesheet approvals can result in interruptions in employee’s pay and/or leave balances. Supervisors must also monitor employee work efforts. If a supervisor sees an employee working during a lunch period, receives emails during “off” hours, etc., he/she must address this with the employee and let them know that working outside of required hours is prohibited unless approved in advance. If employees deliberately hide the fact that they are working, disciplinary action may be taken.

The FLSA does not require meal periods or breaks. However, meal periods and breaks should be used to promote a healthy and productive workforce. At NC State,  meal periods are recommended for employees who have shifts of six or more hours.  Although the FLSA does not require breaks and meal periods, it does provide rules for determining compensation.  Breaks (lasting no more than 15 minutes) are considered as compensable work hours that would be included in the sum of hours worked during the workweek and considered in determining if overtime was worked. Unauthorized extensions of authorized work breaks need not be counted as hours worked when the employer has expressly and unambiguously communicated to the employee that the authorized break may only last for a specific length of time, that any extension of the break is contrary to the employer’s rules, and any extension of the break may result in disciplinary action. Bona fide meal periods, commonly one hour in length, but can be shortened to 30 minutes with supervisor approval, serve a different purpose than breaks and, thus, are not work time and are not compensable. During meal periods, non-exempt employees should be relieved of all work duties and responsibilities.  It is recommended that non-exempt employees spend their  meal period away from the place of work (or at least workstation) to avoid potential interruptions of the meal period.  If a meal period is interrupted by work (e.g. a request from the supervisor to perform work), the entire meal period may become compensable time.  Note that a request by itself may not violate the meal period (i.e. simply asking for a report), and an employee during a meal period may reply to the request when the meal period ends without violating the meal period.

Non-exempt employees may make arrangements and obtain approval from their supervisor to work from home, to check messages at night, or to change their daily schedules to different hours. However, all time worked must be accounted for and recorded as time worked. Supervisors may deny requests to work outside of standard schedules as well as work from alternate locations. All overtime and any alternative work arrangements must be approved in advance by the employee’s direct supervisor.

Time spent traveling is considered “time worked” if you are required to do any of the following:

1. Travel during regular working hours:
   • Time spent by an employee in travel as part of his/her principal activity, such as travel from job site to job site during the workday or travel to and from a training event.
   • When an employee is required to report at a meeting place to receive instructions, perform work there, and/or pick up tools or a vehicle, the travel time from the meeting place to the workplace is part of the day’s work and must be recorded as time worked.
2. Travel as a passenger out of town (same work day):
   • An employee who travels out of town for one day must be paid for all hours spent traveling, except for bona fide meal periods and any travel time from home to the local rail, bus, plane terminal, or meeting place to join university provided transportation.
3. Travel as a passenger out of town (overnight) during regular working hours:
   • An employee who travels overnight on business (e.g. more than one day) must be paid for time spent in travel (except bona fide meal periods) during their regular working hours on regular workdays as well as non-work days (e.g. Saturday, Sunday, University holidays).
   • If an employee drives a vehicle, the travel time is considered time worked, regardless of whether it occurs during regular working hours or outside of working hours.
   • If an employee performs work while traveling as a passenger, the travel time is considered time worked, regardless of whether it occurs during regular working hours or outside of working hours. This work must be approved by the supervisor.

Time spent traveling is not compensable for the following:

• Travel from home to work or to designated starting location
• Travel from worksite or designated ending location to home
• Travel as a passenger outside of normal working hours when traveling out of town overnight (it is paid as straight time but doesn’t count toward “hours worked” for overtime purposes)
• Time when you are completely relieved from duty
• Unusually long or extended waiting periods that occur prior to an employee’s initial departure time or between actual periods of travel if the employee is free to rest, sleep, or otherwise use the time for his/her own purposes

When an employee’s travel involves two or more time zones, the time zone from the point of first departure must be used to determine compensable travel status. For example, if an employee travels from his/her primary location in Raleigh, NC to Los Angeles, CA, the Raleigh, NC time zone (eastern) must be used to determine hours in travel status. However, on the return trip home to Raleigh, NC, the Los Angeles, CA time zone (pacific) must be used to determine hours in travel status.

Required attendance at training sessions, workshops and other meetings, whether before, during or after the employee’s regular work schedule, is considered work time. Voluntary attendance at training sessions, workshops and other meetings is not considered work time. Attendance is voluntary only if the employee is not led to believe that working conditions or continued employment would be adversely affected by nonattendance.