![]() The FLSA does not enforce these regulations for most salaried employees.Įxempt employees have no maximum or minimum number of work hours allowed per week. This means they are entitled to overtime pay and pay rates of at least the FLSA or state minimum wage, whichever is higher. ![]() All hourly employees, on the other hand, are nonexempt. nonexempt employeesĪll exempt employees are salaried, though not all salaried employees are exempt. Determining who qualifies as an exempt employee can seem a bit complicated, but it’s easier than you might think. In other words, “exempt” actually means “FLSA-exempt.” As such, an exempt employee does not receive overtime pay, and sometimes, they aren’t required to be paid minimum wage either. The Fair Labor and Standards Act does not apply to exempt employees. As an employer, you need to understand exactly what an exempt employee is, how they differ from nonexempt staff and what you can legally ask of these workers. These employees are called exempt employees. In fact, no federal laws prevent you from having most of your salaried employees work more than 40 hours per week. While your employees might not like being told they need to work more than 40 hours in a given week, that doesn’t mean it’s illegal to demand it of them. This article is for business owners who need to hire staff and want to know what hiring exempt employees would entail. ![]() Exempt employees may be more knowledgeable than nonexempt employees, but they also may cost more to hire.Exempt employees must meet the Department of Labor’s salary level, salary base and duties criteria.Exempt employees are not regulated under the Fair Labor and Standards Act, which sets the federal requirements for overtime pay and minimum wage.
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