Monday, October 19, 2009

What does "Exempt" and "Non-Exempt" position mean?

Many employers do not know the difference between "Exempt" and "Non-Exempt" employees. In this blog, I will explain the difference between "Exempt" and "Non-Exempt" employees. Many employers treat "Non-Exempt" employees as "Exempt" employees because the "Non-Exempt" employees are normally salaried employees — just like "Exempt" employees. This is not the correct way to treat "Non-Exempt" employees.

"Exempt" employees are salaried employees who supervise or manage other employees as a regular part of their job. "Non-Exempt" employees are salaried employees who do not supervise or manage other employees as a regular part of their job.

"Exempt" employees generally do not receive overtime pay for hours worked in excess of 40 hours per week.

"Non-Exempt" employees MUST receive overtime pay for ALL hours worked in excess of 40 hours per week. In certain states, "Non-Exempt" employees (as well as hourly employees) receive overtime pay for hours worked over 8 hours per day whether or not they work 40 hours per week.

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