Exempt and non-exempt employees get to enjoy different advantages. Exempt employees are paid on a salary basis. Additionally, they generally do not receive overtime pay. In contrast, non-exempt employees are usually paid hourly but are entitled to overtime pay. Some positions are defined explicitly as exempt or non-exempt. Generally, the type of employment or exemption status depends on the following:
- How much one is paid
- How the employee is paid
- The type of work an employee does
It is crucial to determine whether one’s job is classified as “exempt” or “non-exempt” to understand what privileges they are entitled to. Make sure you and your employer are clear about what your status is. In the event that one suspects their employer has intentionally misclassified them under the wrong status, the case may be eligible for a lawsuit.
Exempt Employees
Exempt employees are paid on a salary basis, so overtime pay and other wage laws do not apply. However, they must be paid at least twice the minimum hourly wage for a 40-hour workweek. Exempt employees may be required by their employers to work more than 40 hours a week and may not be eligible for breaks.
They are exempt from overtime provisions laid out in the Fair Labor Standards Act because they are classified as one of the following:
- Executive
- Professional
- Administrative
- Outside sales employee
- Computer-related occupations
- Independent contractors
- Individuals directly employed by the state or any political subdivision
- Police
- Firefighters
- Paramedics and other first responders
However, the above is not an exclusive list separating exempt and non-exempt positions. For instance, someone’s job title may be “administrative assistant.” Just because it has the word “administrative” does not automatically mean it is exempt. This employee may be paid at an hourly rate rather than salary.
Furthermore, receiving a salary does not automatically mean that they are an exempt employee or exempt from California labor laws. Talk to your employer to make sure you are clear as to whether you are classified as “exempt” or “non-exempt.”
The Fair Labor Standards Act has laid out the following requirements to be deemed an “exempt” employee:
- Be paid at least $23,600 per year
- Be paid on a salary basis
- Perform exempt duties
Non-exempt Employees
Employees that are non-exempt are usually paid by the hour and are entitled to overtime pay and rest breaks. Overtime and breaks are some of the advantages of being a non-exempt employee. If you work more than 40 hours, you are entitled to overtime pay. However, one of the disadvantages is that if your place of employment closes or you cannot work, you are not necessarily entitled to pay.
Some examples of non-exempt employees include the following:
- Maintenance
- Service
- Clerical
The Fair Labor Standards Act establishes the national minimum wage and overtime pay. Non-exempt employees are entitled to a minimum wage of at least $7.25 an hour. If they work more than 40 hours in one week, they are also entitled to overtime pay at a rate be equal to or greater than one and a half times the regular rate of pay. There are no legal limits on how many hours an employee aged 16-years-old or older may work.
Contact Pride Legal
If you or a loved one is concerned about their employee exemption status and the labor laws guiding it, we invite you to contact us at Pride Legal for legal counseling or any further questions. To protect your rights, hire someone who understands them.