Frequently Asked Questions
Answers to frequently asked questions regarding the transition to a bi-weekly payroll schedule and premium withholding changes.
Definition: What is the difference between an exempt employee and a non-exempt employee?
The US government determines which jobs are eligible for overtime pay (non-exempt) and which jobs are not through a law called the Fair Labor Standards Act and through regulations of the Department of Labor.
Exempt Employees are those in jobs that are not entitled to overtime. At Davidson College, employees in exempt positions have been called "Salaried" or "Monthly" employees.
Non-Exempt Employees are those in jobs that are eligible by law for overtime pay for all work over forty hours in a week. At Davidson College, employees in non-exempt positions have been called "Hourly" or "Bi-Weekly" employees.
Now all employees will be paid on a bi-weekly basis. Exempt employees are not becoming hourly employees. Exempt employees will be paid every two weeks, but they will still be paid their annual salary amount. That annual pay will just be divided into more pay periods.
Paycheck changes for Exempt Employees Currently Paid Monthly
Starting in January 2019, salaried employees, including faculty, will be paid every two weeks. Since a bi-weekly pay schedule means 26 pays a year instead of 12, current monthly paid employees will see a change in the timing of their pay, as well as the amount of each payment. In order to assist with the transition, the college is offering salaried employees interest free loans. Please see the detailed paycheck changes frequently asked questions (PDF) for more information on this transition.
Premium Withholding Changes for All Benefited Employees and Partial Premium Holiday
In the past we as employees paid in advance for our healthcare, dental and vision premiums. We started paying during our first month of employment and our benefits began on the first of the month after 30 days of employment. Now we will pay for our health, dental and vision premiums as we use them. When they come out of our bi-weekly paycheck, they will pay for the benefits we receive during the current pay period. Please read more in our premium withholding changes frequently asked questions and answers (PDF).