14. Exempt vs. Non-Exempt Status / Time Records and Pay

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EXEMPT VS. NON – EXEMPT STATUS – TIME RECORDS & PAY

 

EXEMPT STATUS – CAN BE DEFINED IN REFERENCE TO APPLICATION S.2.(2) OF THE NUNAVUT LABOUR STANDARDS ACT WHICH STATES IN SUMMARY:

 

MANAGERS - PART I - HOURS OF WORKOF THE LABOUR STANDARDS ACT DOES NOT APPLY TO OR IN RESPECT OF EMPLOYEES WHO ARE EMPLOYED IN A MANAGERIAL CAPACITY.

 

TIME RECORDS & PAY

THERE IS NOTHING STATED IN THE ACT THAT PROHIBITS EMPLOYERS FROM REQUIRING EXEMPT EMPLOYEES FROM SUBMITTING TIME RECORDS. SUCH RECORDS ARE A SIMPLE AND UNIFORM WAY OF TRACKING ALL EMPLOYEE ENTITLEMENTS TO VACATION & VACATION PAY AND GENERAL (STATUTORY) HOLIDAY PAY AS WELL AS OTHER PERSONAL LEAVE BENEFITS SUCH AS SICK LEAVE.

 

NON – EXEMPT STATUS – IS DEFINED AS ANY EMPLOYEE WHO DOES NOT FALL UNDER MANAGERIAL STATUS AS DEFINED IN THE APPLICATION S.2.(2) OF THE LABOUR STANDARDS ACT BUT IS PAID A SALARY RATE.

 

PART V1 S.50.(5) OF THE LABOUR STANDARDS ACT STATES AS FOLLOWS: WHERE AN EMPLOYEE IS EMPLOYED ON A SALARIED BASIS AND HIS OR HER EMPLOYMENT IS TERMINATED, THE EMPLOYEE SHALL BE PAID THE CORRESPONDING HOURLY EQUIVALENT OF HIS OR HER SALARY FOR EVERY HOUR OF WORK THAT HE OR SHE WAS EMPLOYED.

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EXEMPT VS. NON – EXEMPT STATUS – TIME RECORDS & PAY

AN EMPLOYEE AGREEMENT CAN IDENTIFY A WAGE PAYMENT BY MEANS OF A FIXED SALARY RATE FOR A STATED SET NUMBER OF HOURS OF WORK WHICH MAY INCLUDE OVERTIME HOURS WITH THE FOLLOWING CONDITIONS APPLYING:

 

  • THE HOURLY WAGE RATE EQUIVALENT OF THE SALARY MUST BE AT LEAST MINIMUM WAGE OR HIGHER.

  • THE TOTAL WAGES EARNED AND RECEIVED MUST MEET THE MINIMUM STANDARDS IN PART I – HOURS OF WORK , PLUS ANY APPLICALBLE RULES SET OUT IN PART II – MINIMUM WAGE; PART III – ANNUAL VACATION & PAY; PART IV – GENERAL HOLIDAYS AND PART VI S.46.(1) - PAYROLL RECORDS .

  • WHERE THERE IS A REQUIREMENT FOR THE NON-EXEMPT SALARIED EMPLOYEE TO WORK ADDITIONAL HOURS, (ABOVE THE HOURS ORIGINALLY AGREED TO IN THE SALARY AGREEMENT), THE EMPLOYER MUST COMPENSATE THE EMPLOYEE FOR WORKING THESE ADDITIONAL HOURS. IN ALL PROBABILITY THESE HOURS WILL BE OVERTIME AND THUS WILL BE REQUIRED TO BE PAID AT ( 1.5 ) TIMES THE EMPLOYEE’S HOURLY WAGE RATE EQUIVALENT OF THE SALARY RATE.

  • THE EMPLOYER IS REQUIRED UNDER PART VI S.46.(1) OF THE ACT TO RECORD AND MAINTAIN THE DAILY HOURS OF WORK FOR SUCH EMPLOYEES.

 

FOR FURTHER INFORMATION CONTACT: 

LABOUR STANDARDS COMPLIANCE OFFICE 

BOX 1000, STN 590

IQALUIT, NUNAVUT X0A 0H0

 

TEL: 1-867-975-6322 TOLL FREE: 1- 877-806-8402

FAX: 1-867-975-6367

 

THIS IS A GUIDE ONLY

FOR INTERPRETATION AND APPLICATIONPURPOSES, REFER TO THE NUNAVUT LABOUR STANDARDS ACT, ITSREGULATIONS AND AMMENDMENTS.