Understand The Difference Between Exempt And Nonexempt Employees

First and foremost, it is beneficial to understand the difference amongst exempt and nonexempt employees. Therefore, employees classified as nonexempt are paid overtime and for all hours worked, they must be paid no less than the federal minimum wage and at an overtime rate no less than one and one-half times his/her regular rate of pay if working beyond a certain number of hours in a day or a week, they are paid more routinely, and,nonexempt employees are required to take rest breaks and meal break. In contrast, employees classified as exempt are paid based on completion of job tasks instead of hours worked, they are paid a set salary, exempt employees are not eligible for overtime pay, and are not required to take meal breaks or rest breaks (HRTMS, 2016).

how much they are paid, (2). how they are paid, and (3). what kind of work they do. Therefore, in order to be exempt, an employee must (a) be paid at least $23,660 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties which consists of executive, administrative, learned professional, creative professional, computer, or outside sales. Moreover, most employees must meet all three "tests" to be exempt. Essentially, these factors should be considered so that you can determine if employees are exempt from the