Let’s answer this through an example: an employee has an annual salary of $45,000 (which is below the new minimum salary threshold of $913/week or $47,476 annually for 100% FTE) but works a 0.75 appointment, and thus has an annualized salary of $60,000 per year (which is above the new minimum salary threshold), under the DOL guidelines, the employee will now be non-exempt (hourly). In short, if the annual salary of an incumbent is below $913/week, the employee must be classified as non-exempt.
In other words, an employee’s annualized salary (for those who work less than a 1.0 appointment) is not taken into consideration when factoring in FLSA exemption status.
