Modern Tools

How do you know if you are exempt or non-exempt?

How do you know if you are exempt or non-exempt?

An exempt employee is not entitled overtime pay by the Fair Labor Standards Act (FLSA). These “salaried” employees receive the same amount of pay per pay period, even if they put in overtime hours. A nonexempt employee is eligible to be paid overtime for work in excess of 40 hours per week, per federal guidelines.

What do you need to know about exempt status?

The last condition for exempt status includes employee duties. To have exempt status, employees must perform exempt job duties besides meeting the salary and earning requirements. Exemption applies to only employees who have high-level responsibilities. These are the different types of exempt employees:

Who are exempt employees and who are non exempt employees?

Exempt outside sales employees include salespeople and marketers. Computer-related jobs with exempt status include computer programmers, software engineers and systems analysts. Non-exempt employees are guaranteed an hourly wage and overtime pay under the FLSA.

What happens if an exempt employee leaves work early?

Accordingly, if exempt employees clock in late to work or leave early at the end of the day, the employer may not dock their pay as they may for non-exempt employees. If an employer does dock an exempt employee’s wages, such a deduction may jeopardize the individual’s exempt status.

Do you track the hours worked for your exempt employees?

Some employers opt to track exempt employees’ hours simply to ensure the equitable treatment of all employees regardless of classification in the company. With a few exceptions, exempt employees must receive their full salary for any week in which they perform work without regard to the number of days or hours worked.

What makes an exempt employee qualify for exempt status?

Here are some examples that demonstrate what makes a particular employee’s job meet the strict criteria for classification as exempt employees. Outside sales : If you go out and meet with customers, you qualify for the exemption. This does not apply to inside salespeople, such as call center employees.

What happens if exempt employee is working less than forty hours per week?

If an exempt employee is consistently working less than the usually expected forty hours per week, you can consider these actions. Managers can require strict schedules from exempt employees, but it’s generally better to allow exempt employees flexibility in completing their jobs.

Who is exempt from the computer employee exemption?

To qualify for the “computer employee exemption,” an employee must meet the following specifications: However, there are certain types of computer employees which are not exempt. Employees who manufacture or repair computer hardware are not exempt.

When do you have to pay salary exempt employees?

So even if the employee performs less work than normal, you must still pay them their full salary, as long as the reason for the reduction in work is under the employer’s control. For example, if you simply have no work for the employee to do because business is slow, you still have to pay the entire base salary.