Employment Classifications Policy

Responsible Unit: Human Resources | Executive lead: CHRO 
Created: 8/12/2019 | Reviewed/Revised: 5/18/2023| Effective: 6/13/2023 
Compliance: Fair Labor Standards Act (FLSA), NWCCU 2.F.1 
Approving Body: PAC | Classification: Institution-wide 


Policy:  
In order to determine eligibility for benefits and overtime status and to ensure compliance with federal and state laws and regulations, PNWU classifies its employees in the following ways:. 
 
Exempt. Exempt employees are paid on a salaried basis and are not eligible to receive overtime pay. Exempt employees are typically those in professional, administrative, or executive roles as described and defined by the U.S. Department of Labor 

Nonexempt. Nonexempt employees are paid on an hourly basis and are eligible to receive overtime pay for overtime hours worked pursuant to the provisions of applicable federal or state wage and hour laws. 

Full-Time Benefits Eligible. An employee is considered full-time and benefits eligible at 0.7 FTE and above (working 28 hours per week or more). 

Part-Time Benefits Eligible. An employee is considered part-time and benefits eligible at 0.69 – 0.5 FTE (working between 27 – 20 hours per week).  

Part-Time Benefits Ineligible. An employee is considered part-time and not eligible for benefits if they are below 0.5 FTE (working less than 20 hours per week). 

Per Diem. Employees who work on an as-needed basis. Per Diem employees do not work a consistent schedule and are not eligible for employment benefits other than those required by law.  

Temporary. An employee who is employed on a temporary or limited basis, as designated by PNWU, whether or not that employee is regularly scheduled to work, or works full-time or part-time during the period of temporary employment.  Temporary employees are not eligible for benefits. 

Definitions: 
Full Time Equivalent (FTE). FTE is the unit of measure given to an employee to calculate workload. FTE is based on a 40-hour work week. Thus 1.0 FTE = 40 hours per week, 0.8 FTE = 32 hours per week, 0.5 FTE = 20 hours per week, etc.  

 
Procedure: 
N/A 

Related documents: 
https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime
https://www.healthcare.gov