US FLSA Exempt/Non-Exempt classification – FAQs

(Ver. 1.0/28 Aug 2023

US FLSA Exempt/Non-Exempt classification –

Associate FAQs

Document Version / Details: Ver. 1.0/ 06 Sep 2023

 US FLSA Exempt/Non-Exempt classification – Associate FAQs
(Ver. 1.0/01 Sep 2023)

Q1: Why are these exemption changes (Exempt or Non-Exempt) being made?
As part of our ongoing harmonization efforts and pay planning, the Company
conducted a review of compensation, job titles, job levels, job descriptions and work
assignments across the US.

Q2: What does it mean to be an “exempt associate”?

An exempt associate is an associate whose position is not eligible for overtime pay for
extra hours worked and not required to take rest and meal breaks in accordance with
applicable federal and/or state law.

Q3: What does it mean to be a “non-exempt” associate?

A non-exempt associate is an associate whose position is eligible for overtime pay for
extra hours worked and is required to take rest and meal breaks in accordance with
applicable federal and/or state law.

Q4: Does a change in my exemption status change the terms of my employment with
LTIMindtree?
The terms and conditions of your employment will remain unchanged subject to any
changes in exemption classification and corresponding changes in time reporting and
pay. All other terms and conditions, including your status as an at-will employee,
remain the same.

Q5: As a Non-Exempt associate, do I need to do anything specific to claim extra hours

worked?
Non-Exempt associates will be paid for all hours actually worked. Non-exempt
associates must record all hours worked in their timesheet in Time Management
System (TMS), in addition to iTime, which is embedded within iTime tool. The TMS
tool is not applicable to Exempt associates. Hours recorded in TMS by Non-Exempt
associates will be eligible for overtime pay in accordance with applicable federal and
state law.

In the TMS tool, click ‘IN’ when you begin your work day and when you return to work
after your meal break and click ‘OUT’ when you stop work for meal breaks and when
you end your work day. The TMS tool will capture the total hours worked. Non-Exempt
associates, must take their mandatory uninterrupted 30 minute unpaid meal break in
accordance with Company policy and applicable federal and state law.

Q6: If I am a Non-Exempt associate, what breaks are mandatory for me to take during a
work day?
For Non-Exempt associates, in the absence of a contrary state law requirement, the
Company’s mandatory meal and rest break guidelines are as below:

• A paid, 10-minute rest break for every four hours worked. Rest periods
should not be permitted at either the beginning or end of a workday to offset
arrival or departure times. The associate does not need to clock OUT/IN for

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rest periods, but the associate must be relieved from duty for their rest
periods.
• An uninterrupted, 30-minute unpaid meal break when working more than
five hours in a day. You should clock ‘OUT’ in TMS when you start your meal
break and clock ‘IN’ when you return to work. You must commence your 30-
minute unpaid meal break before the end of the fifth hour.
• An additional 30-minute unpaid meal break when working more than 12
hours in a day. You should clock ‘OUT’ in TMS when you start your meal
break and clock ‘IN’ when you return to work.

Q7: If I am classified as a Non-Exempt associate, do I need to get my LTIM Manager’s

approval to work extra hours?
Yes. Non-Exempt associates are required to get prior written approval from their LTIM
manager before working the extra hours. Any extra hours worked must be clocked in
TMS and will go through an approval process within TMS directly to your LTIM
Manager (Immediate Reporting Manager) as mapped in HRMS.

Q8: What if I get consent from my client manager to work overtime?

To work extra hours and clock the same in TMS, you must obtain prior written
approval only from your LTIM Manager. Client manager approval is not considered
as approval from LTIMindtree. If your client manager requests you to work extra
hours, then do keep your LTIM Manager informed and get a prior written approval
before working those extra hours. Based on your LTIM Manager approval, clock your
time in TMS for the extra hours worked. Any overtime worked, but not pre-
approved, will be paid in accordance with federal and state law. However, you may
be subject to disciplinary action for non-adherence to the overtime policy.

Q9: Is booking time in TMS necessary to receive overtime payment?

Yes. Hours booked in TMS only will be considered to calculate overtime payment for
Non-exempt associates.

Q10: Being a Non-Exempt associate do I need to send any emails to my LTIM Manager to
get overtime payment, for extra hours worked?
No. It is not required to send any emails to your LTIM manager to receive overtime
pay. Based on prior approval from your LTIM manager, you can work extra hours and
clock the time in TMS. Your LTIM Manager will be given access to approve your
timesheet in TMS and based on his/her approval, extra hours clocked will be sent to
payroll on a bi-weekly basis.

Q11: Being classified as a Non-Exempt associate, do I need to clock the timesheet in both
TMS and iTime?
Yes, all non-exempt associates are required to clock their timesheet in both iTime and
TMS to track both client billing and working hours under federal and state laws.
Exempt associates must clock their timesheet only in iTime.

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Q12: Being classified as a Non-Exempt associate, will I get a W2 statement at the end of
year?
Yes, all exempt & non-exempt associates will receive their W2 statement at the end
of the year.

Q13: What happens if I am unable to complete my work assignment due to delay or lack
of overtime pre-approval?
Non-Exempt associates must discuss their job assignment with their LTIM Manager,
more specifically on the tasks to be completed along with the timeline required to
complete them. If there are tasks which require extra hours, then the same has to be
discussed with your LTIM Manager and prior approval should be obtained before
starting the work. In case your manager consistently delays in pre-approving overtime
hours, you believe are required, please reach out to your manager’s manager or to
your People Partner to intervene.

Q14: Being a Non-exempt associate, how is my hourly rate determined for purposes of
overtime pay?
For non-exempt associates, hourly rate is computed using the formula:
Annual Fixed salary /2080 hours. Fixed salary does not include any variable pay,
bonus, commissions, joining bonus etc.

Q15: Will a Non-exempt associate be eligible to receive overtime pay for extra hours
worked, even if the end-client does not pay for additional hours billed?
Yes, Non-exempt associates will be eligible to receive overtime pay for approved extra
hours worked, irrespective of whether the client pays for those additional hours billed.

Q16: Does the TMS gets ‘locked’ after the pay period end date? Can I request to reopen
the TMS timesheet after it is ‘locked’.
In the US, we have biweekly payroll (i.e., every alternate Tuesday salary gets paid).
Hence, the non-exempt associates are required to book their timesheet in TMS on a
daily basis. TMS will be locked on the day after the pay period ends and associates are
required to clock their hours worked in TMS on or before the deadline. The pay period
end date usually happens the ‘previous Tuesday’ before the ‘actual pay date’ in USA.
For example:
Pay period From Date To date Pay date
Pay period 13-Sep-23 26-Sep-23 03-Oct-23
(Wed) (Tue) (Tue)

i.e., For the pay period (13 Sep to 26-Sep-23), normalization of timesheet will be
allowed till the end of first date of following pay period (i.e. till 27-Sep-23). TMS will
get locked on 28 Sep 2023 at 12:01AM PST, beyond which TMS timesheet cannot be
booked or normalized for the pay period 13 Sep 2023 to 26 Sep 2023. Request to re-
open the timesheet in TMS is not available.

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You can also refer to the US bi-weekly pay calendar in Ultimaworks. For more
information on TMS clocking, you can refer to TMS reference manual. If you miss
entering your time in TMS before the deadline, please reach out to your TMS
administrator or People Partner in USA for resolution of the same.

Q17: If I forget to clock TMS for a day, can I normalize or regularize the TMS timesheet the
next day?
Yes, non-exempt associates can normalize or regularize the TMS timesheet for the
previous days. Any normalization or regularization of TMS timesheet, should be done
on or before ‘TMS lock’ date. Please refer to above question on TMS locking. Refer to
TMS reference manual for more details.

Q18: Whom should I reach out to for queries related to the TMS tool?
You can connect with Surya Narayanan [email protected]; who is
our TMS administrator for queries related to TMS tool or raise query ticket in
iSupport.
iSupport-> Create incident -> Select IT Applications-> Category-> iTime -> Select
subcategory ‘US-TMS clocking’. URL: https://isupport.ltimindtree.com/knowp

Q19: Do Non-Exempt associates need to record and be paid for time ‘working from
home”?
Yes. All hours worked must be accurately recorded on a Time Management System
(TMS) and all time worked will be paid. Time worked at home, the client location, or
LTIM Offices counts as work time that must be recorded on TMS and the same will be
paid. Keep in mind that any work performed, whether it is at home or in the office or
elsewhere, in excess of 40 hours in a week (or 8 hours in a day in states like California)
would also be considered overtime and requires prior approval from your LTIM
Manager. For example, in California, hours worked in excess of 12 in a day, or in excess
of 8 hours on the 7th consecutive day of work, must be paid at double-time.
But do remember, any extra hours worked at home, client locations, or LTIM Offices
in the US, requires prior written approval from LTIM Manager. For queries, or raise
query ticket in iSupport or contact your people partner for more information.

Q20: Does this mean that Non-Exempt associates will be paid more or less?
Non-exempt associates who work extra hours and clock it in TMS, will be paid
overtime. However, if eligible non-exempt associates’ book fewer hours in a day or
week, their salary will not be reduced as per the hours clocked and they will be paid
for a minimum of 40 hours per week.

Q21: Can an associate choose their exemption status of exempt or non-exempt?

No. Associates cannot choose their exemption status.

Q22: Is a classification of Exempt or Non-Exempt considered a demotion or promotion?

It is neither a demotion nor a promotion. The value of these jobs to LTIMindtree
does not change based on exemption classification.

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Q23: If there are any change(s) in my Fixed salary or Job family/duties or Career track or
Job Level or work location (US State), in the future, will it impact my exemption
classification? If yes, where I can see my exemption information?
Yes, any changes in your fixed salary, job family/duties, career track, job Level or
work location (US State), may have an impact on your exemption classification.
Associates can view their exemption information – Exempt or Non-Exempt
classification in iCore.
For Visa dependent associates, during relocation, exemption information will get
updated in iCore, based on the information in iVizonNxt portal. For Visa Independent
associates, during relocation, exemption information will flow to iCore, once the
changes are updated in iManage tool.

Q24: What if I have any questions on exemption classification?

Please refer additional questions to your manager or Please contact your people
partner or raise query ticket in iSupport.
iSupport-> Create incident -> Select IT Applications-> Category-> iTime -> Select
subcategory ‘US-TMS clocking’. URL: https://isupport.ltimindtree.com/knowp

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