What is meant by the terms “exempt” or “non-exempt”?
Exempt – An individual is exempt from the overtime provisions of the Fair Labor Standards Act when they are classified as an executive, professional, administrative or outside sales employee, and meet the specific criteria for exemption.Certain computer employees may also be exempt from the overtime provisions. Several white papers are available on the SHRM website that address the FLSA and the exempt criteria. Except for certain highly-paid computer professionals and outside sales employees, exempt employees generally must be paid at least $455 per week on a salary basis.Non-exempt – An individual who is not exempt from the overtime provisions of the Fair Labor Standards Act must receive the overtime premium (time-and-one-half) for all hours worked beyond 40 in a workweek (as well as any state overtime provisions).
