The Fair Labor Standards Act (FLSA) is a federal law that establishes rules for minimum wage, overtime pay, and record keeping for work hours. Under the FLSA, “non-exempt” employees are entitled to certain protections, including overtime pay. In contrast, “exempt” employees are not entitled to overtime pay, as their roles meet specific criteria related to duties and salary thresholds.
Starting January 1, 2025, the U.S. Department of Labor has increased the salary thresholds for overtime exemptions under the FLSA to $58,656 per year ($1,128 weekly). To ensure compliance with this regulatory change, UNM will transition all Grade 11 and 12 exempt positions to non-exempt on January 1, 2025. Additionally, part-time positions in grades 13 and above with annual salaries below $58,656 ($1,128 weekly) will transition to non-exempt status.
UNM’s transition plan balances compliance with federal regulations, supporting employees, and minimizing mid-year disruptions to department operations and budgets:
There are pending legal challenges to the overtime rule in federal district courts, however, the outcome of those challenges is uncertain. Currently, the change to the FLSA salary threshold is to take effect on January 1, 2025, and impacted employees, supervisors and departments must prepare for the transition to non-exempt status. If the legal challenges prevent the FLSA changes from going into effect, Human Resources will inform impacted employees and supervisors and the transition to non-exempt will not occur on January 1, 2025.
If your position transitions from exempt to non-exempt status on Jan. 1, 2025, here’s what you can expect:
For more details, view the resources on the Transition from exempt to non-exempt status and the Transition to a biweekly pay cycle.
The University recognizes that the transition to non-exempt status is challenging, and while you will experience differences, this transition does not change your job title, responsibilities, or the value of your position at the University. The transition to non-exempt status will not affect your current base pay rate or benefit or retirement eligibility.
Yes, once you transition to non-exempt status, you will need to document both your hours worked and leave usage using the Standard Timesheet or LoboTime. Please consult your supervisor or timekeeper to understand your department's specific time reporting procedures.
For guidance related to postdoctoral fellows and faculty, please contact the appropriate offices:
Main or Branch Campus: Office for Academic Personnel
HSC Faculty: Faculty Contracts Office or School of Medicine Faculty Affairs and Career Development
Your base salary will remain the same, but your total pay may vary depending on overtime and leave usage. If you work overtime, you’ll receive additional pay at 1.5x your hourly rate for hours worked over 40 in a workweek. Overtime pay will appear in your paycheck for the pay period in which it is earned.
No, when you transition to non-exempt status, you will be paid biweekly instead of monthly. This means you will receive 26 paychecks each year instead of 12.
As a non-exempt employee, you will accrue sick and annual leave more frequently. With every biweekly paycheck, a full-time non-exempt employee accrues 6.47 hours of annual leave and 3.7 hours of sick leave. Over the course of a year (26 pay periods), the total leave accrual for biweekly employees is 168 hours of annual lave and 96 hours of sick leave.
If you are a part-time non-exempt employee, your leave accruals will be prorated based on the actual hours you work and any paid leave you take.
No, you do not need to make changes to your direct deposit. However, if you allocate your direct deposit to multiple accounts, we recommend reviewing your direct deposit allocations to ensure that they still work for your biweekly pay schedule.
Your annual salary is divided by 2,080, which represents the total standard hours worked in a year.
Example:
If you have a full-time (1.0 FTE) position with an annual salary of $52,000, the calculation would be:
52,000÷2,080 = 25, so in this case, the hourly rate would be $25.00.
You can use the Payroll Calculator found in MyUNM. You will need to log in once you click on the link.
Overtime work requires pre-approval from your supervisor as outlined in UAP 3305: Overtime, Section 2. While UNM is obligated to pay employees for all time worked, including overtime for hours exceeding 40 in a workweek, working unauthorized overtime may lead to disciplinary action.
No, your supervisor cannot force you to take comp time in place of overtime pay. For you to receive comp time instead of overtime, there must be a written agreement made in advance between you and your supervisor. If you prefer not to take comp time, you will be paid for your overtime hours. For more details, please refer to UAP 3310: Compensatory Time.
Yes, you can flex your time. Employees should coordinate with their supervisors to arrange flexible scheduling. For instance, if you work stay one hour late to finish a project, with your supervisor’s approval, you can adjust your work schedule to account for that additional hour at some point during the week to balance your hours.
No, you cannot adjust your hours across two different work weeks. UNM defines the work week as starting at 12:01 a.m. on Saturday and ending at 12:00 midnight the following Friday. Any hours worked in excess of 40 during a work week are considered overtime and compensated at 1.5x your pay rate. As a non-exempt employee, with supervisor approval, you can flex your work schedule but the adjustments must occur within the UNM defined workweek to avoid overtime.
Employees and managers should be mindful of UAP 3500- Wage and Salary Administration, Pay Rate for Shift Work. Employees who work at least half their hours on either a second or third shift based on Mountain Time (MT); 4:30pm or after are compensated with a shift differential and paid a differential, in addition to a nonexempt employee's base pay rate to employees
Yes, you can work during the evening or on weekends. However, as a non-exempt employee, you must be paid for all hours worked, including overtime pay for any hours exceeding 40 in a workweek. If your total hours worked—including evening and weekend hours—exceed 40 hours in a week, you must obtain pre-approval from your manager to work those additional hours. Considerations should be given toward Shift Differentials to ensure the proper rate is paid for Shift Work, visit UAP 3500 Wage and Salary Administration, Section 5. Pay rate for Shift Work for more information
Any work outside your scheduled hours, like answering emails or attending meetings, must be tracked and reported. If you exceed 40 hours per week, this time may qualify for overtime pay. Check with your supervisor to ensure you’re following departmental procedures.
Yes. If you work eight (8) or more hours in a workday, you are expected to take a meal break of either:
For more details, refer to UAP 3300: Paid Time. Skipping a meal break should be the exception, not the norm, and requires prior approval from your supervisor.
Each workday should include one paid 15-minute rest period during each half of the workday.
For more details, refer to UAP 3300: Paid Time.
Yes, as a non-exempt employee, you are paid only for the actual hours worked. If you arrive 2 hours late in the morning, you will need to either work an additional 2 hours during the regular work week or take annual or sick leave, as appropriate and approved by supervisor to account for the missed time. The number of hours an employee works and reports should be equivalent to their FTE. Full-time employees need work and/or report 40 hours of time/leave each week.
No, non-exempt employees must be paid for all hours worked, regardless of whether the work is performed during regular hours or on their own time. A non-exempt employee can not hold a volunteer position at UNM, even if it is another department.
Yes, your supervisor can adjust your schedule within the same work week (Saturday to Friday) before any overtime is accrued.
Example: If you work 9 hours from Monday through Thursday, totaling 36 hours, your supervisor may allow you to work only 4 hours on Friday. This adjustment will ensure that you are only paid for 40 hours for that work week.
Please keep in mind that supervisors cannot avoid paying overtime by adjusting your schedule in a different work week.
Yes, holidays recognized by UNM are counted as hours worked. If you work more than 40 hours in a week that includes a holiday, you will receive overtime pay for those extra hours. Also, if you're a non-exempt employee and you work on a holiday, you’ll earn time-and-a-half for those hours, plus you will get additional time off in lieu of the holiday. For more information, check UAP 3405: Holidays.
No, annual and sick leave do not count as hours worked. If you take sick or annual leave during a work week, it won’t count towards your overtime calculation unless your actual work hours exceed 40.
No, your benefits eligibility will not be affected. Benefit eligibility is determined by your full- or part-time status (FTE) which does not change with your transition to non-exempt status.
Yes, your benefit deductions will change from monthly to biweekly. If you are enrolled in benefits, your premium deduction amounts will be automatically updated. For additional guidance on the impact to your benefits, please see the What to Expect guide.
No, the contribution rules for the New Mexico Educational Retirement Board (NMERB) will remain the same.
Yes, for employees currently participating in the UNM 403(b) and/or 457(b) Voluntary Retirement plans, you must take action to reduce your current contribution amount to your desired biweekly contribution amount. This is not automatic and requires your action to change it from the amount you have been contributing monthly to a new biweekly rate.
To review your current contribution amount and make updates, go to Retirement@work platform using your UNM credentials and make your contributions adjustment prior to January 9. This change will be reflected on your first biweekly paycheck on January 17.
Part-time non-exempt employees are paid for all hours worked including overtime for any hours worked over 40 hour per work week. As a part-time employee, it is unlikely that you will routinely need to work over 40 hours in a work week. However, if you do, you will receive overtime compensation.
No. To be considered exempt, an employee must earn an actual annual salary of $58,656 ($1,128 weekly) to meet the FLSA salary threshold. The salary threshold is not prorated for part-time employees.
Employees must receive written or verbal approval from their supervisor for overtime before they work beyond 40 hours in a week. Many departments already have established procedures for approving overtime. If you need assistance in developing a procedure, please speak with your department administrator or contact your HR Consultant (see Find My Consultant).
As a supervisor, it is also your responsibility to ensure your employees understand the overtime approval process prior to their transition to non-exempt status on January 1, 2025.
Even if overtime wasn’t pre-approved, you are required to pay for those hours. However, an employee’s failure to follow overtime procedures can be addressed through performance management processes. For support with the performance management process, contact your HR Consultant (see Find My Consultant).
The transition to non-exempt status is difficult and employees might struggle with the change in work expectations. However, UNM is required to pay for all time worked by non-exempt employees. To support employees with this change, supervisors should discuss work expectations with the employee, including setting expectations about working outside the normal work schedule without prior approval.
Yes, an employee can flex their works schedule to avoid overtime with approval from their supervisor. For instance, if an employee stays one hour late to finish a project, with your approval, you can change the employee’s work schedule by an additional hour at some point during the week to balance your hours.
Considerations should be given toward Shift Differentials to ensure the proper rate is paid for Shift Work, visit UAP 3500 Wage and Salary Administration, Section 5. Pay rate for Shift Work for more information
Set clear expectations about work hours, encourage employees to disconnect after work hours, and monitor timekeeping records closely to ensure compliance.
Asking your employee to work through lunch is permissible provided that it is the exception, not the norm, and there is a valid business reason. However, it is important to remember that non-exempt employees must be paid for all hours worked and working through a lunch break may result in overtime or, to avoid overtime, the need to adjust the employee’s work schedule during the workweek.
The transition to non-exempt status will take effect on Jan. 1, 2025. Make sure employees are informed of their new status, work expectations, overtime approval processes and timekeeping procedures before that date.
It is recommended that supervisors hold one-on-one conversations with each impacted employee to discuss the transition to non-exempt status, set work expectations, and address the employee’s concerns about the changes.
It is also beneficial to meet with others who work closely with an employee transitioning to non-exempt status to set expectations for working with non-exempt employees. For example, it is recommended that colleagues or collaborators who work closely with non-exempt employees understand that employees are not expected to respond to after-hours email or work requests without authorization from their supervisor.
The most important step to support employees is for a supervisor to keep in close communication, explain the change, set work expectations, and establish time reporting and overtime approval procedures.
It is also important for supervisors to assess the impact of the change on their business operations to ensure continuity of work and support employees. Supervisors are encouraged analyze the workload of impacted employees to ensure that assigned tasks can be achieved within a 40-hour work week, cross train employees to ensure equitable distribution of work tasks, and identify and reward process efficiencies.
The transition to non-exempt status means that supervisors will need to consider the current demands on an employee’s work time and workplace norms that cause an employee to work outside of their standard work schedule. When establishing work expectations, supervisors must be mindful to consider current requirements for employees to attend afterhours meetings, work with constituents in different time zones or work locations, department structures establishing lunch or break periods, protocols for use of laptops/cell phones, travel time requirements, and departmental expectations to work on deliverables outside of work hours.
To ease the transition, supervisors are encouraged to:
Many departments are faced with limited budgets and ability to afford to pay overtime on a regular basis. To limit overtime costs, it is essential that supervisors assess that workload demands are reasonable for a 40-hour work week and to set clear expectations for employees to communicate when demands may result in work outside of their standard work schedule.
UNM is required to comply with the FLSA and must pay overtime regardless of the source of funding.
