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The distinction between these two classifications is that nonexempt employees must be paid overtime for all hours worked beyond forty in a workweek, while exempt employees do not receive overtime regardless of how many hours they work.
Tips For Drafting Job Descriptions for Exempt EmployeesAccuracy is King. The job description must be accurate.Accuracy Does Not Mean Exhaustion.Strong Verbs, Clear Impact.Focus on Exempt Functions.Don't Shy Away From Degree Requirements.Assist With Can Diminish a Role.Consider Requiring Acknowledgement.
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.
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.
Typically, the employee must have a salary of at least $455 weekly and must be engaged in non-manual work directly related to managing the company or interacting with customers. Some computer and creative professionals are considered exempt employees. Outsides salespeople can be considered exempt.
While there has been no change regarding what duties make one eligible to be exempt and paid a salary, effective January 1, 2020, the minimum weekly salary an employee must receive if he or she is to remain or become exempt will increase from the current minimum of $455 per week to $684 per week -- the annual salary
Under the new regulations, an employee who is paid a guaranteed salary of not less than $455 per week can be classified as exempt if the employee meets the duties tests for an executive or administrative or professional employee as described below. Executive Employees.
The distinction between these two classifications is that nonexempt employees must be paid overtime for all hours worked beyond forty in a workweek, while exempt employees do not receive overtime regardless of how many hours they work.
The FLSA includes these job categories as exempt: professional, administrative, executive, outside sales, and computer-related. The details vary by state, but if an employee falls in the above categories, is salaried, and earns a minimum of $684 per week or $35,568 annually, then they are considered exempt.