There are actually a lot of nuances and pages of labor law that deal with the difference between nonexempt and exempt employees. However, the practical implications of what it means to be an exempt employee or non exempt employee are pretty straight forward.

Basically, it comes down to whether you have to be paid for overtime or whether you have to be paid the minimum wage.

What Is An Exempt Employee

The definition of exempt employee is one who is not subject to the minimum wage or overtime rules of the Fair Labor Standards Act, or FLSA.

An FLSA exempt employee must fall into one of several categories to qualify as exempt. What determines exempt employee by labor law standards is what role the employee has in their job. A job title is not enough to make an employee exempt.

There are several types of exempt employees including certain employees under age 20, employees of a motor carrier (drivers), and certain types of seasonal and farm workers. In addition, a broad category of salaried exempt employee allows certain employees to be exempt from federal labor law provisions.

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Salaried Exempt Employee

A salaried exempt employee is an employee in one of several jobs including executive, administrative or professional employees as defined in the FLSA. Certain computer employees can also be exempt from overtime provisions provided they are paid a wage of at least $27.63 per hour.

Non-salaried Exempt Employee

Certain people who are not paid a salary can also be exempt employees. Non-salaried exempt employees include drivers, farmworkers, workers at automobile dealerships and seasonal and recreational employees (ski areas, amusement parks).

Commissioned sales employees of retail or service establishments are also exempt from overtime rules as along as more than half of the employee’s earnings come from commissions and the employee averages at least one and one-half times the minimum wage for each hour worked.

Other Exempt Employees

Certain people are exempt from either the minimum wage standards or overtime rules just from being in one of several defined jobs.

FLSA Exempt Positions:

• Airline employees
• Babysitters
• Boat salespeople
• Workers with disabilities
• Fishing industry employees
• Local delivery drivers
• Newspaper delivery
• Railroad employees
• Seamen on both American and non-American vessels
• Taxi drivers
• Youth employed by their parents

What Being Exempt Means

On a practical basis, for most people, being an exempt employee means that you do not earn overtime pay for working more than 40 hours per week. Most professional employees make well above the minimum wage, so any exemption to being paid minimum wage is moot.

Jobs with minimum wage exceptions are typically those that involve either earning tips or commissions and those where the employee is a minor or under age 20. Generally, these jobs are not exempt from paying overtime, although one and a half times the low hourly rate they pay isn’t a big difference many times.

Current Minimum Wage

The current federal minimum wage is $7.25 per hour. Many states, and even some local governments, have their own minimum wage. To be valid, a state’s minimum wage must be higher than the federal minimum wage, otherwise, the employee must be paid at least the federal minimum wage.

The U.S. Department of Labor provides numerous online resources about employment law and labor law including a Handy Reference to the Fair Labor Standards Act.

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Exempt vs Nonexempt Employees originally published at Finance Gourmet

Just think it through for one minute. Doing something like data entry from home would be a great job, especially if you could get a job like that without any experience.

That means TONS of people would want these jobs. If that is the case, then why would any business pay high wages for that, especially to someone with no experience?

In fact, if you think about it for just one more second, you should end up with another conclusion. A job that can be done by anyone, from anywhere, without any extensive training, or previous experience is EXACTLY the kind of job that you can outsource overseas to someone making $5 a day.

How could it possibly be that any company or business in the world would pay you "$2,500 to $10,000 a month or more"?

Don’t be naive.

Work From Home Scams

1) Get Your Cash Then Disappear – They will either require you to send in money for something that sounds legit like a background check, or for some sort of kit to get started and you will either get back nothing, or something worthless.

2) Get Your Bank Account Info – They will say that you are hired but they only pay by direct deposit, so they need your bank account information. They may even ask you to sign a form. Then, they will use that info (and your signature if you filled out a form) to rob your account.

3) Get Your SSN for Identity Theft – We have to have you fill out a form so we can withhold taxes for you. That form includes a SSN and your name and address, everything an identity thief needs.

There are jobs that allow you to work from home, but NONE of them hire people without experience for high pay without meeting them.

If you insist on trying it out anyway, protect yourself!

1) Open a new bank account with no money in it. Give them this bank account information, and only if you HAVE TO.

2) Get a Tax ID number instead of your SSN. Working from home in this manner means being an independent contractor. Get a EIN from the IRS and use it instead of your Social Security Number on any paperwork. It is free and you can get one instantly by filling out an online EIN application form. They will probably just ignore you and move on to easier fish (which is proof it was a scam). If the do bother to come back and say it has to be a SSN, then move on.

3) Some jobs do require a background check, but they do not require that you pay for it with money order, cash, or check. Buy a prepaid Visa for the minimum amount and pay with that. Do NOT use a personal credit card.

But, seriously, you will save yourself a lot of time and trouble if you just re-read this article. There are no amazing "unheard of" opportunities out there that allow you to make great income from the comfort of your own home with virtually

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Make Money Working From Home Online Scams originally published at Finance Gourmet