What does it mean to be exempt vs non-exempt?

What does it mean to be exempt vs non-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.

What is the difference between exempt and non-exempt employees as defined by federal law?

An exempt employee is not entitled to overtime pay according to the Fair Labor Standards Act (FLSA). To be exempt, you must earn a minimum of $684 per week in the form of a salary. Non-exempt employees must be paid overtime and are protected by FLSA regulations.

What is the definition of non-exempt employees?

Nonexempt: Employees primarily performing work that is subject to the overtime provisions of the Fair Labor Standards Act. Overtime pay is required.

What is the difference between paying an employee as an exempt employee vs a non-exempt employee what are the potential risks and the rewards for the employer?

The primary difference between exempt and nonexempt employees relates to employment status. Stated simply, if you’re exempt, then you’re not entitled to receive any compensation for overtime hours that you work; nonexempt employees, on the other hand, are entitled to receive overtime pay.

What determines whether an employee is classified as exempt or nonexempt under the FLSA?

Salary level test. Employees who are paid less than $23,600 per year ($455 per week) are nonexempt. (Employees who earn more than $100,000 per year are almost certainly exempt.)

What do non exempt mean?

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.

What is an exempt employee in Washington state?

Under Washington state wage and hour laws, individuals employed in a bona fide administrative, executive, or professional capacity and who pass the salary level test are exempt from the overtime provisions of the law.

What is the difference between salaried exempt and salaried nonexempt?

Employees who meet the requirements for exemption, are paid on a salary basis, and the salary meets or exceeds the salary threshold are considered salaried exempt. Employees who do not meet the requirements to be classified as exempt from the Minimum Wage Act are considered nonexempt.

Who can be a salaried employee Washington State?

Employees who do not qualify for an exemption but are paid on a salary basis are considered salaried nonexempt. Employees generally must meet a salary basis, salary level, and duties test to be exempted from the Minimum Wage Act as an executive, administrative or professional employee under RCW 49.46. 010(3)(c).

Who is exempt from Washington minimum wage laws?

Executive exemption. Washington exempts bona fide executive employees from its minimum wage and overtime requirements. WA Code 49.46.

What makes an employee exempt in Washington state?

Washington’s overtime exemption rules generally require these “white-collar” employees to meet a three-part test to be exempt: the employees must (1) be paid a fixed salary, (2) perform certain types of job duties, and (3) be compensated at or above the minimum salary threshold.