Why salary matters: Required salaries for exempt positions
Here is important information for hiring supervisors, business managers, account clerks, payroll clerks, and other staff members about required salaries for exempt positions at Purdue.
A monthly salary amount of $1,971.67 must be paid before any non-teaching position can be classified as exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). This requirement is as fundamental as the requirement to pay the minimum wage of $7.25 per hour to nonexempt employees.
Although additional factors may affect the exemption status, the monthly salary requirement must be met before any other factors can be considered.
The FLSA minimum salary requirement applies to:
The minimum salary cannot be prorated based on capacity utilization level (CUL) and is the minimum payment required, regardless of the CUL.
The minimum salary cannot be met by combining income from Purdue and another source, and it cannot be met by combining pay for two concurrent appointments. Each appointment must meet the salary test on its own.
Excluded from the requirement to meet the FLSA salary test are Purdue employees engaged as teachers, as well as those licensed or certified to practice law or medicine who are employed in their corresponding field.
A monthly audit is performed to identify any positions classified as exempt that may have fallen below the minimum salary test requirement. For these positions, the monthly salary must be increased to the minimum or the position must be reclassified to a nonexempt position, regardless of any contract that may be in place. All employees in nonexempt positions are required to complete timecards, and overtime must be paid for all hours over 8 in a day and/or 40 in a week.
Those with questions about the salary test may contact their compensation analyst, their HR team representative, or their regional campus HR office.
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