Wage-Hour Definitions

The University Wage-Hour provisions conform to the requirements of both the Fair Labor Standards Act (FLSA) and the State's "Policy on Hours of Work and Overtime Compensation." It covers SPA employees, both permanent and temporary. Deans, directors, department heads and other supervisory personnel are responsible for assuring compliance with Wage-Hour provisions. Violation of University Wage-Hour provisions may result in disciplinary action. Any violation may result in fines by the Federal Department of Labor, Wage & Hour Division.

See "Related Subjects" below for examples of how to apply these definitions in the Time Information Management (TIM) system.

The work day is the 24-hour period beginning at 12:00 a.m. midnight and ending at 11:59 p.m.

Working more than eight hours in a work day does not necessarily constitute overtime. Overtime occurs only for time worked in excess of 40 hours in a work week.

For work shifts that cross the day-divide, the day of the week on which the majority of the hours on the shift occur shall be considered the work day for the purposes of determining work schedules, work weeks, overtime eligibility, and holiday pay eligibility.

The University's work week is from 12:00 a.m. Monday to 11:59 p.m. Sunday.
The standard work week for full-time SPA employees is 40 hours with an eight-hour daily work schedule (excluding meal period).

All time during which an employee is "required, suffered or permitted" to work is considered hours worked (work time). Ordinarily, all hours from the beginning to the end of the work day are considered work time, except for periods when the employee is relieved of all duties for meal periods or other absences accounted for by approved leave.

Break periods are not required by the Fair Labor Standards Act (FLSA). However, as operational requirements permit and working conditions warrant, management may allow employees to take one 15-minute paid break during any work period of four consecutive hours. In certain occupations, as deemed necessary for safety and health reasons, management may allow more than one break period per four hours as needed or require break periods at specific times of the day.  Break periods are counted as work time.

Break periods may not be combined with a defined meal period or with another break period, may not be used to report to work late or leave early, may not be used in conjunction with any type of leave. Break periods do not accrue. If breaks are not taken during their specified time frames, they are lost.

Neither Federal law nor University policy require a meal period for each employee.  However, a typical employee work schedule provides for a meal period as determined by management and based on operational needs.  Management may set defined meal periods for all employees as operational needs may warrant.

A "meal period" is defined as at least 30 consecutive, uninterrupted minutes free from work-related duties. (Management may approve meal periods of greater length; the standard University meal period is one hour.)

Management may allow employees to take their meal periods at their work stations or may require employees to take their meal periods away from their work stations.

If an employee is required (or is permitted) to perform work during his/her meal period, and if that work does not allow for 30 consecutive, uninterrupted minutes for the meal period, then all of the time that had been considered the meal period must be considered work time. 

Management may approve adjustments the length of an employee's meal period to accommodate the employee's work/life events, so long as operational needs continue to be met.

Minimum Hourly Rate

The minimum hourly rate for student employees (including College Work-Study Program students) is the State of North Carolina minimum wage ($6.15 an hour, effective January 1, 2007).

The minimum hourly rate for temporary and permanent SPA employees is lowest hourly rate on the State Salary Plan ($10.61 per hour, effective July 1, 2007).

Hourly Rate

The hourly rate for a permanent employee is calculated by the Payroll Department.  The rate is set based on the employee's annual salary divided by the number of regularly scheduled work hours in the fiscal year (July 1 through June 30).  Because the total number of work hours may vary from year to year, the hourly rate for the employee will also vary from year to year.  This method ensures that employees receive their full annual salary amount each fiscal year.

Regular Rate

The employee's regular rate is determined by dividing the employee's straight-time earnings for the work week (including any shift premium pay, on-call pay and longevity pay) by the total number of hours worked during that week.  The regular rate is used in calculating overtime compensation.

The federal Fair Labor Standards Act sets guidelines for determining which employees are subject to the overtime provisions of the Act (FLSA non-exempt) and which employees are not subject to the overtime provisions of the Act (FLSA exempt).  Non-Exempt and Exempt status with respect to overtime is not to be confused with SPA or EPA status as defined by the State of North Carolina Personnel Act.

SPA Non-Exempt Employees: Employees who are subject to the State Personnel Act ("SPA" employees) and who are not exempt from the overtime provisions of the Fair Labor Standards Act (FLSA non-exempt) receive overtime compensation, calculated at the rate of time-and-one-half for all time worked in excess of 40 hours during a single work week. These employees are generally called "SPA non-exempt" when discussing human resource policy issues.

All SPA temporary and student employees are non-exempt. A "student" is any person currently attending courses, or who is registered for classes for the next regular Fall or Spring semester, and who is not interested in (or available for) permanent, full-time employment at this time.  Permanent employees who are also students are not considered students for the purposes of this policy.

SPA Exempt Employees: Employees who are subject to the State Personnel Act ("SPA" employees) and who are exempt from the overtime provisions of the Fair Labor Standard Act are not eligible to receive time-and-one-half compensation for overtime hours. These employees are generally called "SPA exempt" when discussing human resource policy issues.

The exemption status is based on the nature of work and is determined by staff in the Office of Human Resources at the time a position is established or reclassified.

Work schedules for each employee are defined by management based on operational needs. Each supervisor is responsible for managing hours worked through such measures as:

• Establishing and communicating work schedules for employees. Schedules should be established to meet departmental operating needs, but whenever possible should be flexible enough to meet employees' needs as well.
• Managing work time so that Non-Exempt employees do not perform unscheduled work that results in an overtime liability. Because of wage-hour concerns, Non-Exempt employees must perform work only during their regular work schedule unless changes have been approved in advance by management or in the case of a bona fide emergency.
• Approving as appropriate any change of an existing work schedule, including overtime work, paid leave, flexible work schedules, or leave without pay.  In most cases, changes should be approved in advance.

Hours worked by an employee without management's permission or knowledge normally will be counted as hours worked if department management knew or should have known of this work.

Employees do not have the discretion to change their work schedules without advance approval of their management. Failure to follow an established work schedule may result in disciplinary action, up to and including dismissal.

See also "Flexible Work Arrangements" in the Related Subjects section below.

Official Records: The University's official wage-hour records ("Employee Time Records"), required by the Fair Labor Standards Act, are retained by the Office of Sponsored Research, PARS Section.  Department management has direct responsibility for maintaining accurate work time and leave records for its employees.  A falsified "Employee Time Record" violates State and University policy. Anyone who knowingly prepares, certifies, or approves a falsified record is subject to disciplinary action, up to and including dismissal.

Time Information Management (TIM) System:  Implementation of the Time Information System (TIM) to track work hours, special pay, and leave for University employees began its phased implementation in August 2007. All leave programs for both SPA exempt and SPA non-exempt employees are currently tracked through the TIM system.  Employee groups not yet moved into the TIM system for time record and special pay purposes follow the recordkeeping structure defined below. 

SPA Non-Exempt Employees: A Form PR-7, "Employee Time Record", is required for each Non-Exempt employee and must be retained in the operating department for four years. The Employee Time Record also must be used for temporary and student employees. Both the employee and his/her supervisor are expected to review the Time Record for accuracy and compliance with Federal, State and University policies. Work time is to be recorded to show the days the time was worked. Non-work time is accounted for through leave, holidays, or other reasons and is recorded according to policy and to instructions on the "Employee Time Record".

SPA Exempt Employees: Exempt employees are not required to complete Employee Time Records. Departments may establish their own procedures for accounting for hours worked or special pay for exempt employees.

If you have questions about this policy, contact the Employment, Classification and Compensation Specialist in the Office of Human Resources assigned to work with your department.