MU Extension new employee orientation

Exempt vs. non-exempt

There are two classifications of job categories:  exempt and non-exempt

Exempt employees

An exempt employee is an employee who, because of his or her positional duties and responsibilities and level of decision-making authority, is exempt from the overtime and minimum wage provisions of the Fair Labor Standards Act (FLSA). Exempt employees are expected, by most organizations, to work whatever hours are necessary to accomplish the goals and deliverables of the position. Thus, exempt employees have more flexibility in their schedules (flex time) to work whatever hours are necessary to accomplish their tasks than non-exempt or hourly employees. Because of this exemption, these employees do not earn compensatory time or overtime compensation for hours worked over 40 in a workweek, and are not required to adhere to strict time and record keeping rules.

An exempt employee at the University of Missouri is typically paid a salary on a monthly schedule.

Non-exempt employees

A non-exempt employee is an employee who, because of his or her positional duties and responsibilities, shall be subject to all FLSA provisions. Non-exempt employees are subject to the minimum wage provisions of the Fair Labor Standards Act (FLSA). Non-exempt employees shall be required to account for time worked and are to be compensated for qualified overtime hours at the premium (time-and-one-half) rate, either in wages or time off. A non-exempt employee at the University of Missouri is paid hourly on a bi-weekly schedule.