S E C T I O N 3 0 0 : C O M P E N S A T I O N
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Subsection .300: Exempt Classifications
Compensatory Time, Terminal Pay
300.300 Exempt Classifications Definitions as stated in the Fair Labor Standards Act
1. Executive Exempt
a. Primary Duty: Manages a department or enterprise 50% or more of the time.
b. Supervision: Customarily and regularly directs work of two or more employees.
c. Authority: Has the authority to hire or fire or recommend hiring and firing; or whose recommendations on these and other actions affecting employees is given particular weight.
d. Discretion: Must customarily and regularly exercise discretionary powers.
e. Nonexempt work: Must be less than 40% of the weekly hours.
2. Administrative Employees
a. Basic Definition: In order for an employee to be employed in a bona fide administrative capacity, all the following tests must be met:
(1) Primary Duty (generally 50% or more of time): Performs office or non manual work relating to management policies or general business operations of the employer or the employer’s customers, or regularly and directly assists a proprietor or an executive or administrative employee, or works under only general supervision along specialized or technical lines, requiring special training, experience, or knowledge, or executes, under only general supervision, special assignments and tasks;
(2) Discretion: Customarily and regularly exercises discretion and independent judgment, as distinguished from using skills and following procedures, and must have the authority to make important decisions; and
(3) Nonexempt Work: Nonexempt work performed by administrative employees in retail or service establishments must be less than 40% of their weekly hours; for other establishments, nonexempt work performed by administrative employees is limited to 20% of their weekly hours.
3. Professional Employees
This exemption includes the learned, the artistic, and the teaching professions. A professional employee must meet all these tests to be exempt:
a. Basic Definition
(1) Primary Duty (generally 50% or more of time): Performs work requiring knowledge of an advanced type in a field of science or learning, customarily obtained by a prolonged course of specialized instruction and study; or work that is original and creative in character in a recognized field of artistic endeavor and the result of which depends primarily on the employee’s invention, imagination, or talent; or teaches, tutors, instructs, or lectures in the activity of imparting knowledge and is employed and engaged in this activity as a teacher certified or recognized as such in the school system or institution by which he or she is employed; or
(2) Other Duties: Performs work predominantly intellectual and varied (not routine) which cannot be standardized in point of time; and
(3) Discretion: Consistently exercises discretion and judgment; and
(4) Nonexempt Work: Limited to 20% of a professional employee’s weekly hours worked.
300.310 Compensatory Time
Exempt employees normally work a forty (40) hour workweek/one-hundred-sixty (160) hours per pay period. However, from time to time, exempt staff members may be required to work additional hours to complete their assigned duties and responsibilities. Exempt employees will receive “compensatory time off” at the rate of one hour off for each hour worked in excess of one-hundred-eighty (180) hours worked in a pay period. Such compensatory time may be taken in forty (40) or less hour increments with the advance approval of the supervisor and may be used as an additional holiday, to extend a vacation, etc. Compensatory time may not be carried over from one calendar year to the next, and employees will not be paid for unused compensatory time at the time of termination of employment.
An exception to the one-hundred-eighty (180) hours compensatory time benchmark is holiday time. When exempt employees work on a holiday they may take compensatory time for the entire time worked.
300.320 Salary Reduction Guidelines for Exempt Employees
Employees exempt from the overtime requirements of the Fair Labor Standards Act shall not have their predetermined salary reduced during a workweek in which they performed any work except for major violations of safety rules of major significance intended to prevent serious danger to the workplace, to other employees, or to the public. Accrued sick leave and vacation or personal leave time will be used for absences of a day or more. Exempt employees will not have their salaries reduced for less than a full day absence.
300.330 Compensatory Time - Terminal Pay
Upon resignation or termination, an exempt employee shall not be entitled to any payout of unused Compensatory time.