All employees in your organization must be classified by you as either exempt or nonexempt for purposes of complying with the FLSA --the federal law that governs wages and hours. Based on the criteria set out by the law, you can determine which classification is appropriate for each of your employees.
What does "exempt" mean? When an employee is exempt from the FLSA, it means that that employee is not entitled to the benefits and protections of the FLSA, and you, as an employer, are not subject to its rules for that employee. That means that an exempt employee may not have to be paid minimum wage or paid in accordance with the overtime requirements specified by the FLSA, for example. Some exemptions completely suspend both the wage and hour provisions. Others afford complete exemption only from the overtime provisions, while still others are partial overtime exemptions that are limited to specific periods during the year [see "TOOL: FLSA exempt employment checklist" at 34,060].
What does nonexempt mean? When an employee is classified as nonexempt, it means that the employee is entitled to a minimum wage, overtime pay at the rate of time and one-half the regular rate for all hours worked in excess of 40 hours per week, as well as other protections under child labor and equal pay, as prescribed by the FLSA.
<p> 34,040, What are "exempt" and "nonexempt" employees? All employees in your organization must be classified by you as either exempt or nonexempt for purposes of complying with the FLSA --the federal law that governs wages and hours. Based on the criteria set out by the law, you can determine which classifi</p>