To determine if an employee is exempt or nonexempt under the FLSA, three main items are considered: their job duties, their pay frequency, and their salary level.
Job Duties: We check if their main tasks fit into categories like executive, administrative, or professional work. If yes, they might be exempt.
Pay Frequency: Exempt employees are paid on a salary basis and receive a predetermined salary amount for each pay period, regardless of the number of hours worked. Nonexempt employees are paid on an hourly basis and must track their time worked.
Salary Level: The new minimum threshold salary set for July 1, 2024, must be at least $844 per week ($43,888 annually) to qualify for most exemptions.
Overall, classification as exempt or nonexempt under the FLSA depends on a combination of job duties, salary basis, salary level, and other factors outlined in the FLSA regulations. It is essential for UAB to carefully evaluate these factors to ensure proper classification and compliance with federal labor laws.