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Exempt/Nonexempt Classification. Offer letters to nonexempt employees should state that they must record their hours worked and they will be paid overtime (as pre-approved by their supervisor), and describe available meal and rest periods.
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.
Pros of hiring exempt employeesYou don't have to pay overtime. When you hire exempt employees, you won't pay overtime no matter how many hours these employees work per week.You can assume they're more experienced.You can give them more responsibility.
Do not require an employee to sign the offer letter, even if such signature is a mere acknowledgement of receipt of the offer letter. Instead, state an expectation to see the employee on his/her first day of employment.
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.
This term will likely prevent, in a dispute situation, the offer letter being construed as a contract. Most employees are hired simply with an offer letter. However, employees hired with an offer letter generally are required to sign non-solicitation and confidentiality agreements.
In addition to the statute's requirements, offer letters should include the employee's start date; job title; name or title of immediate supervisor; whether the position is full-time or part-time; and whether the employee will be exempt or non-exempt from federal and state minimum wage and overtime requirements.
Exempt employees refer to workers in the United States who are not entitled to overtime pay. This simply implies that employers of exempt employees are not bound by law to pay them for any extra hours of work. The federal standard for work hours in the United States is 40 hours per workweek.
Key Takeaways. 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.
An exempt employee is not entitled to overtime pay according to the Fair Labor Standards Act (FLSA). To be exempt, you must earn a minimum of $684 per week in the form of a salary. Non-exempt employees must be paid overtime and are protected by FLSA regulations.