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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.
Executives, administrators, and other professionals earning at least $455 per week do not have to be paid overtime under Section 13(a)(1) of the Fair Labor Standards Act. External salespeople (who often set their own hours) are also exempted from NC overtime requirements, as are some types of computer-related workers.
Highly-compensated: Any employee who primarily performs non-manual labor and regularly performs at least one exempt administrative, executive, or professional duty, and makes $100,000 or more per year (including at least $455 per week on salary), can be exempt from overtime.
The law categorizes all employees as exempt or non-exempt. Non-exempt employees are entitled to overtime pay, whereas exempt employees are not. There are certain types of employees that are more likely to be non-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.
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.
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.
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.
One of the general requirements is that the salaried-exempt employee must be paid a guaranteed salary of at least $684 a workweek (no salary test for outside sales), which would also be the promised rate of pay for the employee.
The term exempt employee refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. When an employee is exempt, it primarily means that they are exempt from receiving overtime pay.