From the course: Human Resources: Payroll
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Exempt or non-exempt employees?
From the course: Human Resources: Payroll
Exempt or non-exempt employees?
- Have you ever wondered about the difference between exempt and non-exempt employees? Many people have asked me this to help them understand what that truly means for their business. Let's first talk about the exempt status. Exempt employees are salaried employees and are not eligible for overtime. This would include executives, learned professionals, administrative employees, computer employees, outside sales, and highly compensated professionals. In contrast, non-exempt employees are hourly employees and they are eligible for overtime. It's important to properly classify employees as non-exempt or exempt to avoid liability for not paying overtime. The Fair Labor Standards Act, or the FLSA, requires that overtime must be paid at a rate of one and 1/2 times a non-exempt employee's regular rate of pay for each hour worked in excess of 40 hours per week. Let's see how Levi's company handled the situation. Levi works at a…
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