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o� <br />AGUEoF <br />�I NN ESOTA <br />G[TIES <br />� <br />CONNECTING & INNOVATING <br />Stt�lC1: i913 <br />HUMAN RESOURCES & BENEFITS INFORMATION <br />FAIR LABOR STANDARDS ACT (FLSA) <br />DET�RMINING EXEMPT VS. NON-EXEMPT STATUS <br />The Fair Labor Stanclards Act {29 U.S.C.A. §201-219) requires, �mong other things, ttiat cities <br />compens�te coverect eniployees at the rate of time and oi�e-half for hot�rs worked over 40 in one <br />workweek. This Fact Sheet discusses which employees are covered (iion-exempt) employees aud <br />which are not covered (exempt) employees. Cities should be aware that Police and Fire <br />De��rt�nent employees have some unique exemptions. See An Overview of tlie Fair Labor <br />Standarcls Act (FLSA) and Police and Fire Emplovees aud tlie Fair Labor Standards Act (FLSAI <br />for mare infonnation on the FLSA. <br />All cities are covered by tlie FLSA, but some employees are "exempt" froin the overtime <br />provisions of the act. To be "exempt," employees must ineet both of two separate tests: 1) duties <br />test; and 2) salary basis test. Non-exempt employees must be paid overtime for all hours worked <br />over 40 in one tvorkweek; exempt employees do not earn overtime. Being "saiaried" does not <br />mean the same tliing as being "exempt." With a few exceptions (e.g., doctors, la�vyers}, any <br />employee �vl�o does not earn $455hveek will be considered non-exempt. <br />Duties Test <br />Tliere are generally four types of exemptions used by ciiies. Employees inust meet the criteria <br />outliued in one of the following four exemptions (Executive, Administrative, Professional and <br />Computer) in order to meet the "duties" test and be considered exempt. <br />Executive Duties <br />Executive ernployees inust: <br />• Be paid at least $455 per week on a salary basis; <br />• Have the primary duty of "n�anaging" the enteiprise (e.g., the city) or a custoinarily <br />recognized "depai�tineut or subdivision" of tlie city; <br />• Regularly supervise t�vo or more employees (at least 80 hours �vorth of employee work per <br />week); and <br />• Have tlie authority to hire or fire otlier employees or have their recommendations ou <br />hiringJfiring, advaucemeut, promotion or other change of status decisions be given <br />"particutar weight." <br />"Managing" includes: spending approximately 50% of work time on management activities like <br />inteivie�ving, selecting and training employees; setting and adjusting employee rates of pay and <br />liours of work; directing employee work; evaluating employee perfoiYnance; handling employee <br />`.. <br />145 UNIVERSITY AVE. WGST rHONe: (G51> 281-1200 Fnx: (G51) 281-1299 <br />ST. PAUL, MN 55103-2044 ro�� FREe: (800) 925-1122 �ves: w►vtivi�.lc.oRr, <br />