What it means to be an exempt employee?

What it means to be an exempt employee?

The term “exempt employee” refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. When an employee is exempt, it primarily means that they are exempt from receiving overtime pay.

Can a employer require an exempt employee to work?

In fact, the Department of Labor (DOL), in the preamble to revised exemption regulations, stated that employers may require exempt employees to work a specific schedule and to record and track hours without affecting their exempt status.

How much do exempt employees get paid per hour?

After 40 hours of work, employers must pay the employee 1.5 times the basic hourly wage for each additional hour of work. However, if the employee is exempt, he does not have to receive additional pay for overtime work. To be considered an exempt employee, the individual must receive a salary rather than hourly pay.

Why are exempt employees more flexible than non exempt employees?

Exempt employees are expected, by most organizations, to work whatever hours are necessary to accomplish the goals and deliverables of their exempt position. Thus, exempt employees should have more flexibility in their schedules to come and go as necessary to accomplish work than non exempt or hourly employees.

Can a company pay an exempt employee additional compensation?

When an employee who is considered exempt experiences a fluctuation in salary due to hours worked, the law will fail to see this employee as exempt. However, FLSA does allow employers to pay an exempt employee additional compensation.

What are the categories of exempt employees?

There are three categories under which an employee may be considered exempt. They are administrative, executive, and professional.

What is the difference between exempt and nonexempt employees?

The most significant difference between exempt and nonexempt employees is compensation structure. Both types of employees have the right to earn a minimum pay rate. However, nonexempt employees are paid an hourly rate and qualify for overtime pay, while exempt employees earn the same pay regardless of actual hours worked.

What determines if an employee is exempt?

Perform a salary basis test to determine how an employee is paid. If pay is received in a predetermined amount regardless of the quantity or quality of work and full salary is paid for a week in which any work is performed an employee is considered exempt.

What is the job description of an exempt employee?

Exempt Job Duties: Professional. Exempt professional employees include lawyers, physicians, teachers, architects, registered nurses and other employees performing work requiring advanced education or training. These typically are intellectual jobs requiring specialized education and involving the use of discretion and judgment.