Whats the difference between exempt and nonexempt?
The federal Fair Labor Standards Act (FLSA) requires employers to pay employees at least the minimum wage for all hours worked and overtime for hours worked in excess of 40 per week. But the law also exempts certain kinds of jobs from the minimum wage and overtime requirements if they meet specific criteria in the FLSA and related federal regulations. Basically, the FLSA exempts broad categories of “white-collar” jobs from minimum wage and overtime requirements if they meet certain tests regarding job duties and responsibilities, and pay certain minimum salaries. Hence, workers in these jobs are known as “exempt,” and they fall into three main categories: executive, administrative, and professional. The FLSA also provides exemptions for outside sales personnel, certain specialized computer personnel, and employees covered by the Motor Carrier Act (MCA). One key element required in order for a position to be classified as exempt is that the employee be paid on a salary basis. This means
