Exempt vs. Non-exempt Employees
In the workplace, most employees are protected by the Fair Labor Standards Act (FLSA). This law regulates how employees are to be paid, sets maximum working hours, and determines overtime eligibility. In short, non-exempt employees are those whom the law covers. Some categories of employees are not protected by the FLSA, meaning they are exempt.
Knowing who is exempt and who is not exempt is important information for employers and employees alike. Employers must pay workers according to the terms of their contracts as well as applicable federal and state laws. Employees want to ensure that they receive fair and full compensation for their time and labor.
Many people assume that their job titles (for example, HR Director, Vice President, IT Specialist) carry with them certain implications about their exemption status. This is a common misconception. In fact, your job title has nothing to do with your eligibility for protection under the FLSA. Three key issues that separate exempt from non-exempt employees are:
- Their job descriptions (not job titles)
- The amount they are paid
- The way their pay is calculated
Generally, employees are only exempt from FLSA regulations if they are salaried and serve in an independent decision-making capacity. Often, these employees are not eligible for overtime pay or other protections that the FLSA offers to workers. However, employers sometimes incorrectly determine their employees’ eligibility.
Contact Us
If you are concerned about your exempt or non-exempt status, or if you simply have more questions about this aspect of employment law, contact the federal employment attorneys of The Vaughn Law Firm at 877-615-9495.
