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: Human Resources
: President
: 09/20/2018
: 09/20/2018
: 09/20/2019

Employee Classification Policy

Comment on Policy

AUDIENCE

All University employees.

PURPOSE STATEMENT

The purpose of this Policy is to identify and define the employee classifications and Fair Labor Standards Act exemption status for Thomas More University employee positions.

DEFINITIONS

Employee: one who is paid a salary or wage directly by Thomas More University.

Exempt Employees: employees who are exempt from the overtime provisions of the Fair Labor Standards Act as amended.

Fair Labor Standards Act (FLSA): a federal law governing minimum wage, overtime pay, child labor and record keeping requirements.

Independent Contractor or Consultant: if the worker is not an employee and meets the Internal Revenue Service (IRS) criteria, the worker is an independent contractor or consultant.

Non-Exempt Employees: employees who are covered by minimum wage, overtime, and time card provisions of the Fair Labor Standards Act as amended.  These employees receive overtime pay for any hours worked over 40 in a work week.

THE POLICY

It is the policy of Thomas More University to classify all employees for purposes of employee benefits, as well as categorize all employees for wage and hour requirements in compliance with the Federal Fair Labor Standards Act (FLSA). 

Note: This Policy does not apply to those individuals who are at the University under independent contractual agreements; such individuals are not members of the employee classifications defined in this Policy.

RELATED POLICIES AND APPLICABLE LEGAL OR ACCREDITATION STANDARDS

Federal Fair Labor Standards Act

Hours of Operation Policy
Independent Contractors Policy
Introductory Period Policy
Insurance Benefits Policy
Job Descriptions Policy
Overtime Policy
Time Reporting Policy

PROCEDURES

Human Resources is responsible for coordinating and communicating employment categories, classifications, and FLSA exemption status. The combination of employee category, classification, and FLSA exemption status determines the application of University personnel policies, as well as eligibility for applicable employee benefits.


I. Employment Categories

All Thomas More University positions are assigned to one of the employment categories identified below:

Faculty: Faculty at Thomas More University are those individuals granted faculty appointments (see the Faculty Policy Manual).

Staff: Staff members at Thomas More University include executive, administrative, professional (other than faculty), secretarial, clerical, maintenance, security, and custodial employees. Staff hired into regular Full-time and Part-Time Benefit Eligible positions are subject to the Introductory Period.

Student Employees: Student employees at Thomas More University are degree-seeking students whose employment is normally of a part-time, temporary nature and incidental to the student’s educational program at the University. Student Employees may be compensated via an hourly wage, one-time payment, tuition waiver or reduced room or board charges or a combination thereof depending on the position.

Federal Work Study Student Employees: The Federal Work-Study Program is a federally funded, need-based student work program awarded and administered by the Office of Financial Aid. To be eligible for Federal Work-Study Program employment, students must apply for financial aid and show financial need. Federal Work-Study Students may not exceed a total of 1,300 hours worked in a 12-consecutive month period. The 1,300 hours can be accumulated in any combination during the 12-month period. Federal Work-Study Students are not subject to the re-employment restriction requiring a break-in-service after 12-consecutive months of employment.

Institutional Work Study Student Employees: The University’s work study program is an institutionally funded, need-based student work program awarded and administered by the Office of Financial Aid. To be eligible for employment in the University’s Work-Study Program, students must apply for financial aid and show financial need, be able to meet the qualifications for the position, and be enrolled at least half-time (6 hours) as a student of Thomas More University. Students accepted into the Thomas More University Work Study Program may not exceed a total of 1,300 hours worked in a 12-consecutive month period. The 1,300 hours can be accumulated in any combination during the 12-month period. Thomas More University Work-Study Students are not subject to the re-employment restriction requiring a break-in-service after 12-consecutive months of employment.

International students in lawful F-1 and J-1 status who are enrolled full-time are eligible to work for the University but must not work more than 20 hours per week in accordance with visa restrictions and must ensure compliance with Federal Work-Study requirements.

Graduate Assistants: Graduate Assistants are full-time degree-seeking Thomas More University graduate students employed by the University to perform institutionally related services. Graduate Assistants are exempt employees and are assigned individual duties consistent with the needs of the department and the experience and qualifications of the student. They are not benefit eligible and are only entitled to those benefits required by law for their specific positions.

Workship Student Employees: Workship is part-time student employment in exchange for tuition at Thomas More University. Workship students must work an average of 20 hours per week for 52 weeks per year and must maintain academic and employment requirements as outlined in the workship contract.

II. Employee Benefit Classifications

The University classifies employees for benefits as follows:

Regular, Full-Time Benefit Eligible Employees: Employees who are regularly scheduled to work at least 37.5 hours per week and who maintain continuous regular employment status. All regular full-time employees are eligible for all employee benefits, as outlined in the University’s Insurance Benefits Policy. Such employees may be “Exempt” or “Non-exempt” as defined in Section III below.

Regular Part-Time Employees: Employees who work an average of between twenty and less than 37.5 hours per week throughout a 12-month period and who maintain continuous regular employment status. Regular part-time employees will be eligible for benefits only as specifically outlined under the provisions dealing with benefit plans.

Part-Time Benefit Ineligible Employees: Employees who work less than 20 hours per week throughout a 12-month period for an indefinite period or for a period specified within a written employment term.

Temporary / Stipend Employees: Employees whose service is intended to be of limited duration such as during peak periods. These employees may provide either full or part-time services. While temporary employees receive all legally mandated benefits (such as workers’ compensation insurance and Social Security), temporary and stipend employees are not eligible for other University employee benefits. Employment beyond any initially stated period does not in any way imply a change in employment status. Temporary and stipend employees retain that status unless and until notified of a change in writing by Human Resources.

All employees, regardless of classification, are expected to comply with the policies of Thomas More University.

III. FLSA Categories

Pursuant to the provisions of the U.S. Fair Labor Standards Act (FLSA), the University categorizes employees for wage and hour requirements as follows:

Non-Exempt Employees - Employees who are covered by minimum wage, overtime, and time card provisions of the Fair Labor Standards Act as amended. These employees receive overtime pay for any hours worked over 40 per week.

Exempt Employees - Employees who are exempt from the overtime provisions of the Fair Labor Standards Act as amended. Generally, Exempt employees occupy executive, administrative, or professional positions and receive a salary rather than an hourly wage. Exempt employees may be expected to work more than the standard work week based on the employee’s position.

A. Exempt/Non-Exempt Evaluation Process

A status of Exempt or Non-Exempt is assigned to each employment position at the time of hire by Human Resources. Human Resources is the sole determiner of Exempt/Non-Exempt classifications for University employment positions, with decisions subject to review and approval of the Chief Financial Officer or his/her designee. Changes in Exempt or Non-Exempt classifications are communicated to the employee and his/her supervisor by Human Resources and do not take effect until such written communication has been received by them. 

B. Statutory Tests for Exempt/Non-Exempt Status
Human Resources utilizes FLSA overtime tests to determine whether an employment position at the University is Exempt or Non-Exempt. See https://www.dol.gov/featured/overtime.

Under the Patient Protection and Affordable Care Act (PPACA), all Regular Part-time Benefit Ineligible staff employees who work less than 30 hours per week shall record and report all hours worked to determine health benefits eligibility. For faculty assigned a part-time or per-course teaching load, Human Resources will use a formula that applies a ratio of work hours to credit hours taught to determine whether a part-time faculty member is eligible for health benefits. The ratio the University will use is 2.25 hours of credit for each credit hour taught. This crediting method takes into account time for preparation, teaching, grading, and similar activities needed to teach a course.

IV. Independent Contractors

Professionals or business persons who perform services for the University under terms and conditions substantially under their own control and direction are, under certain circumstances, not considered employees, but independent contractors. All determinations on whether or not an individual should be considered an independent contractor are made in accordance with the University’s Independent Contractor Policy.

REFERENCING THE POLICY

HISTORY

This is a new policy, replacing language in the Staff Manual (May 2014).

APPENDIX

There are no appendices to this policy.

APPROVALS

Laura Custer, Director of Human Resources

Dr. Kathleen Jagger, Acting President