Compensation and Classification Tools and Procedures

This page provides tools for compensation and classification reviews and changes, as well as information to consider about work time flexibility, mobile devices and more in relation to Fair Labor Standards Act (FLSA) exemption status.

The single most important issue is to classify employees correctly as exempt or non-exempt under the FLSA. Campus units should contact UHR Compensation and Classification for assistance in determining exemption status and for approval of any change that results in employees going from FLSA non-exempt to exempt due to a change in duties. Michigan Medicine and other EVPMA units should contact [email protected]

Important Mobile Device Guidelines Regarding Classification

Under the FLSA, non-exempt employees must be paid overtime compensation for work they perform for their employer’s benefit in excess of 40 hours in any workweek. Work performed remotely, such as responding to e-mails on a smartphone or drafting a report on a laptop at home, is counted as work time for overtime purposes, and may push an employee’s work hours in a given week beyond the 40-hour threshold. An employee need not have been asked to work beyond the 40-hour workweek to be entitled to overtime pay.

Recent court cases have emphasized that FLSA violations can unexpectedly occur when non-exempt employees work outside the office using mobile devices. It is important for units to communicate clear policies spelling out the authorization employees must obtain before working remotely using their mobile devices. Please view the information on Creating a Mobile Device Policy in the following section to learn more.