The Fair Labor Standards Act (FLSA) establishes the minimum wage and overtime pay for employees in the United States. There are three main types of exemptions under the FLSA: executive, administrative, or professional exemption.
Employees are classified as either exempt or nonexempt from FLSA requirements. If you’re an employer, knowing which classification your workers fall under can help you determine their compensation and benefits packages.
Exempt employees are not entitled to earn the federal minimum wage or qualify for overtime pay, while non-exempt employees are. Understanding these classifications can also help you avoid potential violations of labor laws that could result in costly penalties if they go unnoticed or unresolved.
It’s important to know which type of employee you have so that you don’t violate any labor law regulations when making decisions about their wages and hours worked – especially if they work more than 40 hours a week!
Non-exempt employment is a classification of employees who are not exempt from the overtime provisions of the Fair Labor Standards Act. These employees typically work in managerial, executive, or professional positions and their salaries exceed a certain threshold.
Non-exempt employees are entitled to a minimum wage of $7.25 per hour in the United States. Non-exempt employees must be paid overtime for all hours worked over 40 in a week, and are entitled to time off under the law.
This means that if your non-exempt employee works more than 40 hours in a week, they must be compensated at time and one-half their regular rate of pay for every hour over 40 hours worked.
They also must be paid time-and-a-half for hours worked on Sundays, holidays, or other days when they do not work more than eight hours per day. In short, all the extra hours they put in, should be paid with extra money and their time during the workweek should be compensated and adjusted.
Under the FLSA, non-exempt employees can be paid hourly, salary, piece rate, commission, etc., as long as their weekly compensation equals at least minimum wage for all hours worked and overtime is paid for hours more than 40 in a workweek.