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Quick: What’s the difference between an exempt and nonexempt employee?
Most industries are required to classify each job as either exempt or non-exempt based on strict guidelines defined in the Fair Labor Standards Act (FLSA). In brief, you are required to pay non-exempt employees at least the minimum wage for each hour worked plus overtime pay of one and a half times their hourly rate for all hours worked beyond eight hours a day and 40 each week. Exempt employees are "exempt" from overtime pay regulations and typically hold executive, supervisory, professional or outside sales positions. Exempt employees generally must earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment. Employers beware: just placing an employee on a salary does not exempt that employee from wage and hour laws.
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