What is the difference between non exempt and exempt employees?
12 replies (most recent on top)
Why are people so rude when questions are asked? People haven't always had experiences that would provide them with an opportunity to know where to go or what to look for in order to find their answers. OP, I'm in HR and I can sit here and list out several of the items that others have either refused to do or have tried to do, but haven't covered nearly all if the items that qualify a particular role/position as exempt/non-exempt, which is just proof that hardly anyone (including many in HR because it's not their specialization) really knows what makes someone exempt vs. non-exempt and that it has to do with not just qualifying for overtime or not, but rather, is a salary basis test and a duties test. These two tests together work to prevent an employer from doing something that would harm employees such as calling a $25k per year a "manager" in order to stop paying them overtime. While they may meet the duties test in terms of managing people, they wouldn't meet the "salary" basis test, so the employer cannot categorize that role/position as exempt and have them work as many hours as the employer wants them to without fairly compensating them for overtime. I was going to post a link to the actual FLSA regulation, but this law firm sums it up pretty simplistically and it's much easier to understand than trying to sift through the entire FLSA regulation and guidance. https://flsa.com/coverage.html
She’s saying all managers are non-exempt; not all non-exempt are managers…
ohj+1en1VwOl... sorry- you are wrong. I am and have been exempt for many years and have never been a manager.
It's more about whether you need to maintain specific hours and level of supervision in order to meet company requirements.
I was exempt at one point and they discovered that we were being forced to work overtime for free without the benefit of the expected leeway of an exempt employee and although we got kicked back to hourly - I received a nice fat check for the overtime and my inconvenience.
Being management has 0 to do with it.
Some non-exempt positions also get a bonus incentive. So they get overtime and a bonus. Best of both worlds.
Also, exempts are managers and non-exempts are supervisors as per labor law.
exempt = you are paid a salary regardless of how many hours are actually worked, not an hourly wage. there may or may not be a bonus or incentive comp that goes with the role
non-exempt = you are paid an hourly rate, with different rates for overtime.
There are different labor regs for hourly (non-exempt) workers than exempt. these vary by state. One example is required breaks for nonexempt.
Don't mind the arrogant phucks who seem to think they were born knowing all answers to all questions.
Can you let me know the best way to put a bike chain on? Mine fell off and it’s being a beach.
Simple:
Exempt - you work overtime for free
Non-Exempt - you don't work overtime for free
Your "incentive" compensation is supposed to offset the loss of OT, but it typically doesn't even come close.
Seriously? Good grief!
Overtime vs non overtime eligible
This is what a google is for.