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no cas will an employee be paid at less than the minimum range r the classification. When an employee's position is reclassified to a lower pay grade and the presen5 salary is above the maximum for the ~ower grade, the employee shall be permitted 5o continue at the presen£ rate of pay for the first budge5 year of the reclassification. Future adjustments will be determined each budge5 year to bring the salary within the range. The Direcsor of Personnel shall approve all position reclas- sifications. SECTION 5. OVERTIME a. Eliqibilit¥ Eligibility for overtime compensation shall be determined by the FLSA Compliance Officer, the Department Head, and the Director of Personnel in ~ccordance witk the Federal Fair Labor Standards Act of 1938, as amended (FLSA). b. Exempt and Non-exempt Classifications Exempu and Non-exempt classifications are indicated in Section 11, entitled Alphabetical Listing of Job Titles. The letter E after the grade designation indicaues positions that are Exemp5 from the provisions of the FLSA; the letter N after the grade designation indicates positions tha5 are Non-Exempt and are subject 5o overtime compensation according to Section 5a, entitled Eligibility. c. Absences by Exempt Employees In accordance wit~ C~ty policy, employees who are exempt from the overtime pr~ovlslons of the FLSA will not be subject ~o deductions from their compensation for periods of absence from work of less than one day even if said employees have no accumulated leave in the applicable leave accounts. Addi- tionally, in accordance with the FLSA regulations for public sector employers, deductions that are nou regular and recur- ring for absences due uo a budget-required furlough shall not disqualify empIbyees from being paid on a salary basis except in the work week in which such deductions occurred. The Director of Personnel shall develop and e~force such specific policies regarding the taking of such absences by employees as may be necessary. -6-