Definitions

Letter of Appointment – (Salaried) Part-time Faculty (Non PTIs)

A temporary part-time faculty member is an employee of an institution or unit within the NSHE who is assigned duties that are considered exempt by the Federal Fair Labor Standards Act (FLSA) regulations and is employed less than halftime. If the appointment is for a period greater than one year, it must be approved by the President or Vice President.

Letter of Appointment – (Salaried) Part-time Faculty with Benefits (Non PTIs)

A faculty member of an institution or unit within NSHE who is assigned duties that are considered exempt by the Federal Fair Labor Standards Act (FLSA) regulations and is employed at .5 Full-Time Equivalent (FTE) or more for a period less than twenty-four months. If the appointment is for a period greater than one year, it must be approved by the President or Vice President. The duration of the appointment may be extended when approved by the President or Vice President.

Letter of Appointment (Hourly) Part-Time Faculty (Non PTIs)

While exempt positions are typically considered salaried by FLSA regulations, there are certain exempt functions that lend themselves to hourly payment for operational reasons. Examples include hourly music instruction, professional services billed on an hourly basis, and exempt level research or project-based work that varies week to week.

FLSA Regulations

The Department of Labor (DOL) made changes related to the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA's minimum wage and overtime pay requirements and to allow employers to count a portion of certain bonuses (and commissions) towards meeting the salary level. Below are the new final rule standards specific to the administrative exemption:

  • Effective July 1, 2024: Raises the paid "standard salary level" from $684 to $844 per week (equivalent to $43,888 per year)
  • Effective January 1, 2025: Raises the paid "standard salary level" from the currently enforced level of $844 to $1,128 per week (equivalent to $58,656 per year)

These guidelines informed the university’s development of a new system and process to correct current and prevent future FLSA violations. Please note that this review does not impact Part-time Instructors (PTIs) or Letters of Appointment Hourly.

Process for Hiring Letters of Appointments (Salaried) (New LOAs)

The following process and guidelines will be implemented in two phases for hiring new LOA salaried positions:

To ensure the university meets FLSA guidelines for exempt positions, departments must complete and attach the following to the Hire Business Process in Workday:

*This form is an internal document for review by Human Resources which will be used to verify that the essential functions and primary job duties meet the FLSA exempt salary and duties test. Alternatively, you can attach an existing PDQ representative of the LOA’s essential functions in lieu of completing the LOA Job Description form.

  • Standardized Job Descriptions for some LOA Salaried positions engaged in exempt level job duties are included in the Master LOA Descriptions section below:
    • Using standardized job descriptions will ensure letters of appointments are performing exempt level work and will eliminate the need to complete the LOA job description form when hiring.
  • Departments are required to use one of the following: a) applicable standardized job description b) completed Letter of Appointment Job Description form or c) existing PDQ representative of the LOA's essential functions. 
  • Managers are responsible for ensuring equity between their full-time administrative faculty and temporary part-time letters of appointment. To facilitate equity, a salary schedule for letters of appointments (salaried) will be developed to aid in initial salary placement and to maintain consistent pay practices for LOAs across campus.
  • Once implemented, the salary schedule would apply to the hiring of any new salaried LOA's.

Letter of Appointments (salaried-non PTI) typically perform administrative exempt level work.

Administrative job duties are (1) office or non-manual work, which is (2) directly related to the management or general business operations of the employer or employer’s customers, and (3) a primary component of which involves the exercise of independent judgment and discretion about (4) matters of significance. Independent judgment and discretion involve the comparison and evaluation of possible courses of conduct and having the authority to make an independent choice, free from immediate direction, with respect to matters of significance. Decision making is independent of use of manuals, guidelines, or software packages to make determinations.

Evaluate the following questions before requesting an administrative (salaried) letter of appointment, if you answer “no” to any, the employee/position is likely not exempt and not eligible for such appointment type.

  • Is the employee compensated on a salary basis at a rate not less than $844 per week?
  • Is the employee’s primary duty directly related to the management or general business operations of the university or its customers?
  • Does the employee’s primary duty require the exercise of discretion and independent judgment with respect to matters of significance?
  • Have the authority to formulate, affect, interpret or implement management policies or operating practices?
  • Carry out assignments in conducting the operations of the university?
  • Perform work that affects the business operations to a substantial degree?
  • Have the authority to commit the university in matters that have significant financial impact?
  • Have authority to waive or deviate from established policies and procedures without prior approval?
  • Provide consultation or expert advice to management?
  • Have authority to negotiate or bind the university on significant matters?
  • Be involved in planning long or short-term business objectives?

Benefits Matrix

LOA/Temporary Hourly Appointments
Job Family Group FTE Exempt Medical Coverage Grant-in-Aid Annual /  Sick Leave Retirement Contributions (FICA Alt Plan)
LOA-Salaried

 

50% or greater

If the appointment is for a period greater than one year, it must be approved by the President or Vice President.  Maximum is 24 months.

X

X

X

N/A

X
LOA-Salaried*/**

Below 50%

If the appointment is for a period greater than one year, it must be approved by the President or Vice President.

 X */** X N/A X

LOA-Hourly*/**

Below 50%

X

 */**

X

N/A

X

Temporary Hourly*/**

Capped at 1,000 hrs. in a fiscal year

N/A

*/**

N/A

N/A

X

* Medical coverage will be afforded if employee is working an average of 130 hours per month during NSHE’s Standard Measurement Period (July 1 to April 30). If ACA threshold is met, employee will be offered medical benefits the first of the month following a two month administrative period (60 days). The employee is then able to keep that coverage for a full twelve months (stability period) while employed even if their hours during that time falls under 130 hours per month.

** Medical coverage will be afforded if the intent at their date of hire is to have them work 80 hours a month (20 per week). If PEBP threshold is met, employee will be offered medical benefits on the first of the month concurrent with or following their hire date.

Master LOA Descriptions