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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.
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.
Maine state statute recognizes the exemption from overtime for people working in a "bona fide executive, administrative or professional capacity" and requires that employers pay a salary according to the requirements of the Federal Fair Labor Standards Act (FLSA).
Maine exempts a collection of occupations from overtime entirely, including taxi drivers, certain salespeople, all farm workers, under-18 camp counselors, automobile mechanics, salespeople, and some drivers, members of the employer's immediate family, and employees involved in the perishable, agricultural, or meat/fish
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.
Who is eligible for overtime pay? To qualify as an exempt employee one who does not receive overtime pay staff members must meet all the requirements under the duties and salary basis tests.
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.
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.
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.
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.