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Administrative Manual - 204 Classification and Compensation

204.01 Fair Labor Standards Act

  1. POLICY

In determining the status of its various job positions, JSA shall conform to the provisions of the Fair Labor Standards Act (FLSA, or Wage-Hour Law). All positions shall be evaluated to determine whether it is appropriate to designate their status as exempt or nonexempt from the minimum wage and overtime pay provisions of the FLSA. Additionally, JSA will assign each job position to a classification series.

  1. DETERMINATION OF EXEMPT/NONEXEMPT STATUS
    1. Basis

The Fair Labor Standards Act (FLSA) requires all covered employees to be paid at least the federal minimum wage and stipulates how their overtime payments are to be calculated. The overtime provisions of the Act, however, do not apply to certain executive, administrative, and professional employees if they meet the tests set for each category.

    1. Definitions
      1. Exempt - An employee who is exempt from the overtime provisions of the FLSA.
      2. Nonexempt - An employee who is not exempt from the overtime provisions of the FLSA.
      3. Classification - The identification of positions in regard to: (1) kinds of duties performed and responsibilities; (2) level of duties performed; (3) requirements as to education, knowledge, experience and ability; and (4) ranges of pay.
    2. Basic Rules
      1. Bona fide executive, administrative, and professional employees (engineers and scientists) and outside sales people are exempt from the minimum wage and overtime requirements of the Act if they meet the tests set for each category.
      2. Any employee who earns at least the minimum weekly salary specified and who also meets all of the duties and responsibilities outlined is exempt from the minimum wage and overtime pay requirements of the law. An honorific title does not make an employee exempt, nor is the employee exempt simply because payment is on a salary rather than an hourly basis.
    3. Position Analysis
      Prior to assigning any JSA position to a classification, an analysis is conducted in accordance with the rules discussed above, to determine whether the position is exempt or nonexempt. Once the status of the position has been determined, the position is then assigned to a classification.


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