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v�//� <br />O i <br />O � <br />" TAGUE oF <br />�-I�INNESOTA <br />�ITIES <br />� <br />CONNECTING & INN4VATING <br />s�NCF ���3 <br />HUMAN RESOURCES & BENEFITS INFORMATION <br />FAIR LABOR STANDARDS ACT (FLSA) <br />DETERMINING EXEMPT VS. NON-EXEMPT STATUS <br />The Fair Labor Standards Act (29 U.S.C.A. §201-219) requires, among other things, that cities <br />compensate covered employees at the rate of time and one-half for hours worked over 40 in one <br />workweek. This Fact Sheet discusses which employees are covered (non-exempt) employees and <br />which are not covered (exempt) employees. Cities should be aware that Police and Fire <br />Department employees have some unique exemptions. See An Overview of the Fair Labor <br />Standards Act (FLSA) and Police and Fire Emplovees and the Fair Labor Standards Act (FLSA) <br />for more information on the FLSA. <br />All cities are covered by the FLSA, but some employees are "exempt" from the overtime <br />provisions of the act. To be "exempt," employees must meet 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 workweek; exempt employees do not earn overtime. Being "salaried" does not <br />mean the same thing as being "exempt." With a few exceptions (e.g., doctors, lawyers), any <br />employee who does not earn $455/week will be considered non-exempt. <br />Duties Test <br />There are generally four types of exemptions used by cities. Employees must meet the criteria <br />outlined 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 employees must: <br />• Be paid at least $455 per week on a salary basis; <br />Have the primary duty of "managing" the enterprise (e.g., the city) or a customarily <br />recognized "department or subdivision" of the city; <br />Regularly supervise two or more employees (at least 80 hours worth of employee work per <br />week); and <br />Have the authority to hire or fire other employees ar have their recommendations on <br />hiring/firing, advancement, promotion or other change of status decisions be given <br />"particular weight." <br />"Managing" includes: spending approximately 50% of work time on management activities like <br />interviewing, selecting and training employees; setting and adjusting employee rates of pay and <br />hours of work; directing employee work; evaluating employee performance; handling employee <br />� <br />l45 UI�IVERS[TY AVE. WEST vHONe: (651) 281-1200 Fnx: (651) 2$1-1299 <br />ST. PAUL, MN SS1Q3-2044 TOLC FREE: �HOO) �JZS-�IiZ WEB: WWW.LMC.pRG <br />