Exempt or Non-Exempt – Clarifying Employee Status

Employee Status is a Key Determining Factor

Jobs covered by the FLSA are required to include overtime pay unless they have characteristics that make them exempt from that requirement.

What Makes an Employee Exempt?

Exempt positions generally receive higher compensation; these employees are often salaried, and the duties they perform are used to determine their status as an exempt employee. The FLSA offers these parameters for exempt-type job duties:

Executives

These high-level employees assume management tasks for the business, supervise at least two full-time staff people, and have authority into the direction of the company.

They may be authorized to hire and fire employees, assign projects and tasks, or make purchases on behalf of the enterprise.

Professionals

Professionals usually have advanced training or education and frequently are licensed to do the work that they do.

Professionals bring their education acumen, personal skills, and independent judgment to the job and usually offer something unique to the company that draws from their distinct and individual talents.

Creative types like writers and artists fall into this category, although skilled tradesmen and mechanical workers do not.

Administrators

Administrators manage the aspects of the company that support the activity of the business but are not engaged in the work of the business.

They perform critical tasks such as human resources management, accounting, and public relations functions. Under the FLSA, these employees perform office work (not manual labor) which is directly related to corporate activities either for the company or for its customers.

They also offer their personal judgment and discretion in their work on matters that are significant to company operations.

There is a dollar figure associated with exempt workers.

Until December 1, 2016, exempt employees can earn no less than $23,600 annually. Workers paid less than that are non-exempt. After that date, however, exempt employees can make as much as $47,476 annually and be considered non-exempt.

What Makes an Employee Non-Exempt?

Workers who earn at least the minimum wage and work 40 hours per week are entitled to “time-and-a-half” overtime pay for every hour over 40 worked in that week.

Most workers today are non-exempt, meaning that millions of employees are eligible to receive compensation for work done above the 40 hour threshold.

How do the new overtime laws affect exempt vs non-exempt employees?

Raising the overtime pay eligibility threshold for currently exempt employees ensures millions of Americans can now enjoy the extra compensation that their hard work has earned.

But, employees won’t have to wait until the new laws come into effect. Millions could potentially be eligible for overtime and not know it.

If you feel like you could be owed compensation, contact The Law Office of Glenn D. Levy today for a free consultation and receive your just pay.