Most employers have employees that are protected by the federal Fair Labor Standards Act (FLSA). Among other things, this law sets the minimum wage and overtime rate at which some employees must be paid. The purpose of this policy is to define the various classifications of employment and, for employers subject to the FLSA, to describe which employees are exempt and non-exempt from the FLSA’s requirements.
Your policy should include only the classifications your organization uses. It’s important to note any employee classifications that aren’t eligible for benefits. If limited benefits are available to part-time or temporary employees, those benefits can be described in a separate policy.
Additionally, if your organization has employees that may earn the right of tenure, you’re highly encouraged to add a provision to this policy that mentions tenured employees as a classification. It would likely be beneficial to also provide information about tenure, such as eligibility, review, and limitations.
You’re encouraged to ask a local attorney how specific labor laws in your state may affect your organization’s position classifications for employees. Sometimes state or local laws are more stringent than federal laws.
The following definitions have been established to standardize terminology and provide common understanding in our references to employees:
Employee - A person who receives wages or salary from (name of organization) and whose work this organization controls and directs.
Full-time Employees - Those who regularly work 40 hours or more weekly and who maintain continuous regular employment status. Regular full-time employees are eligible for benefits offered by (name of organization).
Part-time Employees - Those who regularly work less than 40 hours weekly and who maintain continuous regular part-time employee status. Part-time employees may be eligible for certain benefits offered by (name of organization). Part-time employees are generally classified as non-exempt employees.
Temporary Employees - Those whose services are intended to be for a short period of time or of limited duration, or for an indefinite period when there is no intent by (name of organization) to provide regular status. (Name of organization) may either hire temporary employees directly or may use an agency to supply temporary employees. Temporary employees are not eligible for benefits. If a temporary employee is subsequently hired as a regular full-time or part-time employee, date of hire will be determined by the date on which the employee becomes a regular employee.
Regular Employees - Those whose services are intended to be for an indefinite period and who work regularly scheduled hours on an ongoing basis, either full- or part-time.
Exempt Employees - Those who are exempt from the provisions of the Fair Labor Standards Act. They typically perform executive, administrative, or professional duties within the organization. Exempt employees must be paid on a salary basis (meaning no deductions from weekly pay for quality or quantity of work), and that salary must meet a minimum salary level. As of January 1, 2020, the minimum salary was $684 per week ($35,568 per year). Exempt employees are not eligible for and do not receive overtime payment.
Non-exempt Employees - Those who are not exempt from the provisions of the Fair Labor Standards Act. Non-exempt employees are eligible for overtime payment as set forth in (name of organization’s) overtime policy.
This is a sample handbook policy only. Your organization is responsible for compliance with all applicable laws. Accordingly, this document should not be used or adopted by your organization without first being reviewed and approved by a licensed attorney in your area.
This sample policy is published with permission from Working Together—A Guide to Employment Practices for Christian Employers.
© 2022 Brotherhood Mutual Insurance Company. All rights reserved. www.brotherhoodmutual.com/working-together. Updated 9/2021.