Ask HR: What Is ‘Salaried, Nonexempt’?

SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, answers HR questions each week.

Do you have an HR or work-related question you’d like him to answer? Submit it here.

My job is classified as ‘salaried, nonexempt.’ Though I’ve seen the term many times before, I’ve never understood what exactly it meant. What does that mean? How does it affect my pay?
—Marlene

Johnny C. Taylor, Jr.: Most people are either salaried or nonexempt, but some assume you can’t be both. Well, that’s wrong. “Salaried” means you are paid a weekly rate, and “nonexempt” means you are entitled to overtime pay for any hours worked over 40 in a week. So, let’s say you make $52,000 per year (or $1,000 per week) and you work 50 hours one week. That week, you would earn $1,000 salary plus $375 overtime pay (10 hours at time-and-a-half pay of $37.50 per hour) as both a salaried and nonexempt employee.

These classifications of salary, hourly, exempt and nonexempt are regulated at federal level. However, some states may have different overtime pay requirements, such as daily overtime calculations.

While the term “nonexempt” is often associated with hourly employees, your employer is not necessarily required to pay you on an hourly basis. Instead, nonexempt employees can receive compensation through various methods, including salary, piece rate, commission, etc., provided their total weekly pay meets the minimum wage requirements and overtime is appropriately compensated for any hours worked beyond 40 in a workweek.

Your employer is still obligated to track and record work hours of salaried, nonexempt employees. If you work overtime, your employer must calculate your regular hourly rate based on your salary and pay you accordingly for all overtime hours worked. This ensures compliance with federal and state labor laws regarding compensation for nonexempt employees.

Thanks for asking, and I hope this makes your job designation clearer.

I’m considering putting in for a transfer to another department. What is the best way to inquire about a transfer without burning bridges with my current team and manager?
—Dean

Johnny C. Taylor, Jr.: Navigating an internal transfer while maintaining positive relationships with your current team and manager requires careful consideration and communication. Here’s how you can approach the process without burning bridges:

1. Review company policies. Start by familiarizing yourself with your company’s internal transfer policy and process. Ensure that you meet the eligibility requirements for a transfer, and carefully assess the qualifications and skills required for the position you’re interested in.
2. Initiate a candid discussion. Transparency is vital in this situation. Schedule a meeting with your manager to have an open and honest conversation about your intention to apply for a transfer. Clearly communicate your reasons for seeking the transfer, such as a desire for career growth or a better alignment with your career goals. Emphasize that your decision does not reflect any issues with your current team or manager, but rather a personal career choice.
3. Involve HR. Once you’ve discussed with your manager your intent to transfer, contact your HR department to kickstart the internal transfer process. They can provide guidance on the necessary paperwork and steps to formalize your request.
4. Exercise discretion with co-workers: While being transparent with your manager is essential, consider keeping your intention to transfer confidential from your co-workers until your move is confirmed. This can help minimize any disruptions within your team, especially if you’re not ultimately selected for the transfer. However, if you are chosen for the new position, offer your assistance in training your replacement and supporting your team during the transition period.

Following these steps and maintaining open communication allows you to conduct the internal transfer process smoothly while preserving the valued relationships with your current team and manager. Good luck as you pursue this new opportunity!