April Mabry Ronda Bauman TASB HR Services

1
April MabryRonda BaumanTASB HR Services

• Exempt or Nonexempt?
• That is the Question

2
Myth or Reality?

• All salaried employees are exempt.
• Myth
• Employees who earn more than 23,660 per year are
  exempt.
• Myth

3
Myth or Reality?

• Employees who direct the work of two or more
  employees are exempt.
• Maybe
• Employees who hold more than one job in a school
  district can be both exempt and nonexempt at the
  same time.
• Myth

4
Myth or Reality?

• Superintendents secretaries are exempt because
  of the importance of their work.
• Myth
• School districts dont have to worry about the
  Fair Labor Standards Act.
• Myth

5
Myth or Reality?

• The computer employees who know so much and solve
  all of our computer problems are exempt.
• Myth

6
Determining Exemption Status

• The U.S. Department of Labor (DOL) assumes jobs
  are nonexempt.

Employers are responsible for proving the
exemption claimed is valid.
PROVE IT!
7
Exemption Tests

• Executive Test
• Administrative Test
• Professional Test
• Computer Employee Test
• Highly Compensated Employee Test

To be classified as EXEMPT, a position must meet
all of the criteria for one of the exemption
tests.
TAKE NOTE!
8
Exemption Status Depends On

• Salary Level
• Minimum of 455 per week.
• Primary Duty
• Basis of Pay
• Must receive the full salary for any workweek in
  which the employee performs any work.

Ensure the workweek is consistently defined and
documented.

TAKE NOTE!
9
Allowable Deductions from Pay

• Full day
• Personal reasons
• Sickness or disability
• Offset for jury duty, witness fees, military pay
• Unpaid disciplinary suspensions
• First or last week of employment
• Unpaid FMLA leave

• Partial day
• Permission for leave NOT requested
• Permission for leave requested and denied
• Exhaustion of accrued leave
• Unpaid FMLA leave

10
Executive Exemption Test

• Primary duty is management of the enterprise or a
  recognized subdivision of the enterprise.
• Directs the work of two or more full-time
  equivalent employees (FTE).

The principal, main, major, or most important
duty the employee performs.29 C.F.R.
541.700(a)(b)
PRIMARY DUTY IS
11
Executive Exemption Test

• Primary duty is management of the enterprise or a
  recognized subdivision of the enterprise.
• Directs the work of two or more full-time
  equivalent employees (FTE).
• Has authority to hire or fire employees or whose
  recommendation to do so holds weight.

12
Administrative Exemption Test

• Primary duty is the performance of nonmanual work
  directly related to the management or general
  business operation of the employer or employers
  customers.
• Primary duty includes the exercise of discretion
  and independent judgment with respect to matters
  of significance.

13
Administrator in an Educational Establishment

• Compensated at 445 per week OR at least equal to
  the entrance salary for teachers.
• Primarily responsible for performing
  administrative functions directly related to
  academic instruction or training in an
  educational establishment or department or
  subdivision.

14
Professional Exemption Test

• Primary duty is the performance of work requiring
  knowledge of an advanced type in a field of
  science or learning customarily acquired by a
  prolonged course of specialized intellectual
  instruction.

Predominantly intellectual in character requiring
consistent exercise of discretion and judgment.

KNOWLEDGE OF AN ADVANCED TYPE
15
Computer Employee Test

• Compensated at 455 per week OR 27.63 per hour.
• Primary duty consists of one or more of the
  following
• The application of systems analysis techniques
  and procedures to determine hardware, software,
  or system functional specifications.
• Design, development, documentation, analysis,
  creation, testing, or modification of computer
  systems or programs related to user, system
  design specifications, or machine operating
  systems.

16
Highly Compensated Employee Test

• Compensation of at least 100,000 per year.
• Employee regularly performs any one or more of
  the exempt duties or responsibilities of an
  executive, administrative, or professional
  employee.

17
Nonexempt Employees

• An employee is considered nonexempt if the job
  duties do not satisfy one of the exemption tests.

When in doubt, classify as nonexempt.
TAKE NOTE!
18
What red flags do you see?

• Page 12
• Titles that are usually nonexempt
• Low salaries for exempt positions

19
Activity ? Classifying Positions

• Exempt or nonexempt?
• What are the primary duties of the job?
• Place orders
• Track inventory
• Schedule bidding
• What are the daily tasks?
• Place orders
• Answer phones, e-mails
• Follow policy

20
Resources

• April Mabry
• Ronda Bauman
• TASB HR Services
• 800-580-7782
• hrservices.tasb.org