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Fair Labor Standards Act

According to the federal Fair Labor Standards Act (FLSA), employees are considered either exempt or nonexempt based on:

• Salary level
• Duties and responsibilities assigned to the position
• Level of supervision received
• Whether or not specialized training or education is required to perform the duties
• If discretion and judgment must be exercised regularly as part of the duties
• Amount of time and effort spent performing various duties

Salary and Wages

If you are nonexempt, the university is required by federal law to pay you a regular hourly wage. The university is also required to pay you overtime at the rate of one and one-half times your regular hourly rate for all hours over 40 in a given workweek you work at the university. You also come under the minimum wage requirements of the law. Time records are required to be submitted for all nonexempt staff members.

If you are exempt, the university is required to pay you a salary. The nature of exempt positions may require exempt employees to work more than 37.5 hours in a given workweek. Carnegie Mellon is not required by law to pay additional compensation to exempt staff if they work over 37.5 hours in a workweek. Salary levels for exempt staff should reflect the total compensation for all services provided.

The state and federal minimum wage and overtime requirements apply to all of our employees, including minors, contract employees and temporary employees. Note that the Pennsylvania minimum wage is $7.15 as of July 1, 2007. For work locations not in Pennsylvania, the salary is not to be below the federal minimum wage or state/local minimum wage, whichever is higher. All wages should be within the salary grade range for their job class code.

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For more information:

• Staff Handbook: A Human Resources Guide - Compensation section
• Fair Labor Standards Act (.pdf) - helps managers understand and follow guidelines set by the FLSA

© Carnegie Mellon Human Resources 2004