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Oct 24, 2023 · Learn the differences between exempt vs. non-exempt employees, how to determine employees’ correct classifications and the consequences of misclassification.
Apr 23, 2024 · WASHINGTON – The Biden-Harris administration today announced a final rule that expands overtime protections for millions of the nation’s lower-paid salaried workers by increasing the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements.
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- What Is An Exempt Employee?
- What Is A Non-Exempt Employee?
- Wage and Hour Laws
- Salary vs. Hourly Pay
- Employee Classification
- Frequently Asked Questions About Exempt and Non-Exempt Employee
Employees exempt from the FLSA typically must be paid a salary above a certain level and work in an administrative, professional, executive, computer or outside sales role. The Department of Labor (DOL)has a duties test that can help employers determine who meets this exemption criteria.
Non-exempt employees are usually paid an hourly wage or earn a salary that’s less than a minimum amount determined by the DOL.
The FLSA governs federal minimum wage, overtime, recordkeeping and youth employment for individuals working in both the private and public sectors. Some state and local jurisdictions, however, have their own wage and hour laws. In these cases, the DOL says that employers must apply the minimum wage or overtime rate that is most favorable to the emp...
Pay alone doesn’t determine whether an individual is exempt or non-exempt, but it may dictate workplace policies. For instance, employers who have hourly workers must track time and attendance to ensure payrollaccuracy. Timekeeping usually isn’t as important with salaried employees unless incentives are offered to those who put in extra hours.
Failure to properly distinguish exempt from non-exempt employees, sometimes referred to as misclassification, can adversely affect businesses. Misclassification may result in: 1. Regulatory enforcement action 2. Fines and penalties 3. Employee lawsuits for unpaid overtime 4. Costs to remedy misclassification Sometimes reclassification is necessary,...
Can you require exempt employees to work certain hours?
Employers are free to create work schedules for exempt employees however they see fit as long as they comply with any state and local regulations that govern meals and breaks.
What is the duties test for exempt employees?
Exempt employees are required to meet certain DOL job criteria known as the duties test. For example, someone who qualifies for the executive exemptionmust participate in the hiring and management of other employees. Job titles alone are not enough to grant exempt status.
Does an exempt employee have to work 40 hours a week?
No, however, many businesses have company policies mandating a 40-hour workweek for exempt employees. Employers may take disciplinary action, including termination, against anyone who doesn’t fulfill that requirement, but they usually can’t deduct pay. Doing so might result in the employee no longer qualifying for the exemption.
Oct 20, 2022 · Exempt employees are individuals who are not eligible for minimum wage, overtime regulations and other protections extended to non-exempt workers. These employees are typically part of the...
Salary level: To be classified as exempt, employees must receive a minimum weekly salary of $1,057.69. Overtime: Non-exempt workers are entitled to time-and-a-half the regular rate of pay for every hour worked in excess of 12 hours daily.
Apr 25, 2024 · To be classified as exempt, employees must be paid on a salary basis at or above the required salary threshold, regardless of hours worked each workweek, and carry out job duties that fall into one of the DOL's exempt categories.
Under the FLSA rules, an employee must make at least $684 a week ($35,568 a year) to meet the salary threshold requirement. Generally speaking, an exempt employee must be paid the same amount for any week in which the employee performs any work, regardless of the number of days or hours worked.
