In addition to HR guidelines, various federal and state laws place constraints on compensation. The law sets out certain work rules and establishes minimum wage and overtime compensation. The law also governs child labor (work by persons under the age of 18). The Internal Revenue Code governs how and when taxes are deducted from paychecks. Below is a brief summary of legal regulations that affect salary and that are most relevant to Ithaca College.
Exempt/Non-Exempt Status and Overtime Pay
Federal and state laws require that overtime must be paid for certain, but not all jobs. The federal law is the Fair Labor Standards Act. The term “exempt” refers to jobs that are excluded from these overtime requirements. This means that employees are not entitled to overtime pay if the job is “exempt” regardless of how many hours are worked.
The term “non-exempt” refers to jobs that are not exempt from legal overtime requirements. This means that employees in non-exempt jobs are entitled to overtime pay for all time worked beyond 40 hours in a week.
In accordance with legal requirements, whether a job is classified as exempt or non-exempt depends on the content of the job. It does not depend on how the employee (or the supervisor) wants the job to be classified. Human Resources makes the final determination as to whether a job is exempt or non-exempt, based on an analysis of the job as compared to federal regulations.
If a job is classified as non-exempt, employees are entitled to receive overtime compensation for each hour worked beyond 40 hours in a workweek. The overtime rate of pay is 1½ times the regular hourly rate for each hour worked. Prior to working beyond the normally scheduled hours, employees must get approval from the supervisor.
In some instances, overtime may be a condition of employment or continued employment. In other situations, a job’s work schedule may be different from the typical College workweek, based on the needs of the department. Supervisors are responsible for letting employees know the needs of the department and each employee’s expected schedule.
Pay for All Time Worked (non-exempt staff only)
Federal and state laws require that staff in non-exempt jobs must be paid for all the time they work. If an employee works more than 40 hours in a workweek, he/she will receive extra pay. Time worked up to 40 hours will be paid at a straight time rate; time worked in excess of 40 hours will be paid at an overtime rate.
Employees who come to work early and begin working prior to the regular start of a shift must record this time on the timesheet in order to be paid.
In order to adhere to the budget, supervisors must inform employees in advance of restrictions in the number of overtime hours worked.