FLSA Changing to Non-Exempt - Human Resources at Ohio State

Compensation

FLSA Changing to Non-Exempt

If you change from being an exempt to a non-exempt employee, you are eligible for overtime pay if you work more than 40 hours in a week.

Four key impacts to you include:

  • Your salary will be converted to hourly pay.
  • You will be paid biweekly instead of monthly.
  • You will use a timekeeping system to track hours worked, and your supervisor or designated approver must approve the timesheet in order for pay to be processed.
  • You must have overtime approved by your supervisor in advance.

Ask your supervisor or unit’s human resources professional about your unit’s overtime practices, such as advance approval, tracking work outside of regular business hours (such as answering emails and phone calls during lunch or in the evenings), and the timekeeping requirements.

Next Steps and Resources for Employees

There are some important next steps related to the transition from monthly to biweekly pay. Important to note:

  • Ask your unit supervisor or HR professional about the timekeeping system used in your unit and training for unit practices on timekeeping and overtime.
  • If you sometimes work during off hours in addition to your standard work day, ask your supervisor or HR professional about tracking those hours.
  • Review the sections of your paycheck using this action list showing what happens under a biweekly schedule.

Payroll Deductions

Some of your payroll deductions will be automatically converted to a biweekly schedule by the university, but only you can adjust others. Ask your human resources professional about the deadline for adjusting your deductions in future paychecks. More information about specific deductions can be found below.

Other Deductions

Benefit deductions for medical, dental, vision, public retirement plans, Flexible Spending Accounts, life insurance and disability will be automatically recalculated for you. No action is required on your part.

If you would like to see the biweekly deduction amounts for health, life insurance and disability, use the HR Benefits Rates tool. Make your selections using the drop-down menus, and choose the biweekly option in the pay frequency menu.

Biweekly deductions for medical, dental, vision, FSA, short-term disability, voluntary group term and dependent group term life insurance are taken from two biweekly paychecks a month. For two months during the year, the biweekly pay schedule contains three pays, and these deductions are not taken from the third pay.

Biweekly deductions for retirement plans are taken with each paycheck.

The amount you currently contribute to your 403(b) or 457(b) Supplemental Retirement Account (SRA) in each monthly pay will be the same amount you contribute in each biweekly pay unless you make a change. For example, if you currently contribute $100 with each monthly paycheck to your SRA, you will contribute $100 with each biweekly paycheck unless you change your election.

You are advised to review the amount of your contribution and take action if you wish to change the amount. Use Employee Self Service for this process. See the SRA calendar to know the deadline for making changes for each pay period.

Bucks for Charity and Campus Campaign deductions will be recalculated for you to adjust to a biweekly schedule for the remainder of the giving year. The current year’s Bucks for Charity deductions end in December. The current year’s Campus Campaign deductions continue through June and roll over to the next fiscal year. Email bucksforcharityFLSA@osu.edu or ccampaign@osu.edu if you want to change the recalculated amounts for these donor deductions.

If you purchased a CampusParc parking pass, parking fees for employees paid biweekly are deducted from the second paycheck of each month. Your deductions will continue with no action required by you.

If you use your financial institution’s personal bill-pay service for making payments, such as for credit card payments, utility bills and home mortgage payments, you are encouraged to review the timing of these payments relative to your new paycheck schedule. To make a change, contact your financial institution and the billing entity as soon as possible, as advance notice may be required.

For Managers of Non-Exempt Employees

Managers with employees who change from exempt to non-exempt can help ensure that they experience a smooth transition to a new FLSA status. This information can help you manage a non-exempt, hourly employee if you have not done so before.

Here are the key impacts for managers:

  • Supervisors or designated approvers must approve an hourly employee’s timesheet in order for pay to be processed. If an hourly employee’s timesheet is not approved, that person will not be paid. This does not apply to Health Systems employees.
  • Supervisors must approve overtime in advance. Check with your unit’s HR professional on overtime approval practices.
  • Share information with your team about your unit’s overtime practices, such as advance approval, tracking work outside of regular business hours (such as answering emails and phone calls during lunch or in the evenings), and timekeeping requirements.