How Do I Determine Whether an Employee Is “Exempt” or “Non-Exempt”?

This is determined under the Fair Labor Standards Act (FLSA).  Factors include employees’ job responsibilities and autonomy to make decisions as part of their classification.  Employees determined to be non-exempt employees are paid minimum wage or higher for any hours worked less than 40 hours a week; for any hours over 40 worked in a week a rate of time and one-half must be paid.  Employees classified as exempt are not paid overtime under FLSA.

Job title alone does not determine classification of a job as exempt or non-exempt.  Use the job description to determine if an employee is an exempt executive.  An employee must earn a minimum $455 per week to be classified as exempt.  The most important determining factor in classifying employees as exempt or non-exempt comes from a duties test.

As always, seek legal help to make the right decision.

Sources:  http://www.flsa.com/coverage.html

https://www.lawyers.com/legal-info/labor-employment-law/wage-and-hour-law/am-i-an-exempt-employee-or-nonexempt-employee.html

https://www.thebalancecareers.com/exempt-and-a-non-exempt-employee-2061988