Alaska Job Offer Letter - Exempt or Nonexempt Position
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How to fill out Job Offer Letter - Exempt Or Nonexempt Position?
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FAQ
Non-exempt Benefits: Overtime Pay Non-exempt employees are compensated for the time they work, not the jobs they complete, so if they work more than 40 hours per week, they make extra money.
An exempt employee is not entitled overtime pay by the Fair Labor Standards Act (FLSA). These salaried employees receive the same amount of pay per pay period, even if they put in overtime hours. A nonexempt employee is eligible to be paid overtime for work in excess of 40 hours per week, per federal guidelines.
Individuals employed in a bona fide administrative, executive, and professional capacity who pass the duties tests are exempt from the overtime provisions of the law (AK Stat. Sec. 23.10.
Because the statutory language states that the minimum wage will be adjusted annually for inflation and there was no inflation in 2020, the minimum wage will remain at $10.34 in the calendar year 2022. By law, Alaska's minimum wage must remain at least $1 per hour over the federal minimum wage.
Exempt (Salaried) Employees. As part of the FLSA, exempt employees are those individuals who are not subject to receive overtime pay. To qualify for exempt status, the employee must meet the salary minimum and the position must pass the Department of Labor (DOL) Job Duties Test.
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
Exempt employees must be paid on a salary basis, as discussed above. Nonexempt employees may be paid on a salary basis for a fixed number of hours or under the fluctuating workweek method. Salaried nonexempt employees must still receive overtime in accordance with federal and state laws.
Exempt positions are excluded from minimum wage, overtime regulations, and other rights and protections afforded nonexempt workers. Employers must pay a salary rather than an hourly wage for a position for it to be exempt.
Nonexempt: An individual who is not exempt from the overtime provisions of the FLSA and is therefore entitled to overtime pay for all hours worked beyond 40 in a workweek (as well as any state overtime provisions). Nonexempt employees may be paid on a salary, hourly or other basis.
What does non-exempt mean? If employees are non-exempt, it means they are entitled to minimum wage and overtime pay when they work more than 40 hours per week.
