Exempt vs Nonexempt Employees
One topic that generates a lot of confusion in people’s personal finances is what is the difference between exempt and nonexempt employees? 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 …