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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.
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.
The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.
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.
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.
There is a provision in the overtime regulations ( Chapter DWD 274, Wisconsin Administrative Code) that "exempts" employees whose primary duty is administrative, executive, or professional work from overtime requirements.
Exempt or Nonexempt.Employees whose jobs are governed by the FLSA are either "exempt" or "nonexempt." Nonexempt employees are entitled to overtime pay. Exempt employees are not.
Starting January 1, 2020 the salary threshold for an "exempt" employee under the Fair Labor Standards Act (FLSA) will increase to $648 per week, or $35,568 annually.
Simply put, an exempt employee is someone exempt from receiving overtime pay. It is a category of employees who do not qualify for minimum wage or overtime pay as guaranteed by Fair Labor Standard Act (FLSA). Exempt employees are paid a salary instead of hourly wages and their work is professional in nature.
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.