Can you explain the difference between exempt and non-exempt employees.

This is a complex issue. Exempt employees are paid the same amount every week not considering the actual hours worked. They are not entitled to overtime. Non-exempt employees are entitled to overtime after 40 hours per week. They can be paid less when the hours are less than 40.

Two factors determine exempt or non-exempt status: Salary and primary responsibilities. To be exempt an employee must be paid more than $455 per week or be in one of 5 recognized classes; Outside Sales, Executives, Administrators, Computer Pros and Professionals. There is no law requiring exempt status for any employee. Even CEO can be paid an hourly wage. When an employee is treated as non-exempt, that employee is non-exempt and eligible for overtime.

Hope that helps you out. =)

A note about HR laws:
Laws concerning employee treatment, benefits, hiring and firing…etc are multi-level. What this means is that there are Federal laws, state laws and sometimes local regulations that have jurisdiction over an employee. The information presented here should not be considered legal advice. Ultimately, employers with serious legal questions should consult local attorneys with expertise in worker relations.
The questions and answers presented here are based on research and data from internet sources and should not be considered the final word.

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