Exempt Employees

Overtime: Federal overtime provisions can be found in the Fair Labor Standards Act (FLSA). Employees who are not exempt from overtime regulations are covered by the Act and employers are required to provide them with overtime pay for hours worked

The salary rates the business is presently paying for the individual positions fall well within the wage cure; however, modifications will be as followed:

• Each employee qualifies to earn overtime at a rate of 1.5 of his or her hourly rate for every hour greater than 40 hours.

The first acknowledgment of an employer is ensuring compliance with the FLSA is to ensure all employees are classified correctly either under exempt or non-exempt. When a liability by curtailing claims for not accurately compensating employees for any overtime worked. Additionally, an employer should make sure to train their management team to be able to determine exactly what employees are considered exempt and non-exempt (SHRM,

In general, these laws found in chapter 1 of our text are made to enforce and ensure proper wage, safety, and work hours for all individuals, without any form of discrimination, such as the FLSA act of 1938 and the Equal Pay Act of 1963 along with others found in this lesson. They also allow for medical issues or disabilities within the family such as the FMLA of 1993. The four groups can be categorized as income continuity, safety, pay discrimination and work hours. Others may be accommodating families with physical and mental disabilities and other wage laws. If I were to decide between the groups which is most important I would have to say that they would all be equally important

However, the Director of Nursing and Management are exempt, but the higher salaries they paid to management will still probably be much higher than their hourly counterpart. Because of the enormous earning of upper management Companies are justified in not paying them for overtime

There are four categories for exempt: executives, administrators, professionals and outside salespeople. An executive employee is a manager who has authority over subordinates. An administrative employee is a staff employee. A professional is a person who has special knowledge acquired through education, such as a company physician or lawyer. An outside salesperson sells goods or services to customers away from the organization. Most nonexempt employees are blue-collar workers, such as skilled and semi-skilled manufacturing workers, truck drivers and assembly-line workers. The minimum wage and overtime provisions of the law cover nonexempt employees. Human Resources job is to make sure that jobs are classified correctly. The act also covers compressed workweek, comp-time, and flextime. In recent amended to include maternity leave for mothers and there will no longer be both a short and a long test, but each employee category (e.g., executives, administrative employees, professionals, computer employees) will have one standard test outlining salary and duty

The Fair Labor Standards Act has been amended many times and is virtually an ever-changing law, however, it does not cover all employees. There are several classes of “exempt” employees, including salaried employees in the executive/managerial, administrative, and professional areas. Outside salespeople are also considered exempt. One of the issues facing companies today is knowing which employees are exempt and which are non-exempt. There are tests to determine if an employee is exempt. In 2004 the tests changed to a standard test, which is whether or not the employee’s salary is $455/week or greater and the duties test, which allows for exempt status if more than 50% of the work performed by an individual is “exempt work.” (Pass and Broadwater) Exempt employees do not receive overtime pay, which can be a substantial cost savings to a company. My previous employer required that an exempt manager close the center each night even though we had non-exempt team leads who acted as managers in most capacities. The reason was to avoid overtime costs.

     Let’s begin by defining exempt and non-exempt. Non-exempt employees are those that are paid on an hourly basis and receive overtime compensation at one and one-half times their base pay for

8. Weekly overtime pay g. Amount & nature of exempt pay h. Weekly overtime pay

While smaller businesses operating on tighter budgets may find it expensive to pay overtime, the bigger companies with few employees on the managerial positions are capable of paying for overtime for the employees whose category will fall below the minimum exempt. Furthermore, all the options available for employers to handle the proposed rule should it come into effect will still benefit the American worker. One remedy is to follow the law and raise the annual salaries of employees who are overtime-exempt which will motivate workers who are already earning a salary close to that minimum (Rossheim, 2016). The second option is to re-classify workers as no-exempt, a move that would see the workers who are earning below the proposed exempt minimum qualify for overtime pay or reduce the workload for employees so that they only work for 40 hours in a week (Rossheim, 2016). The last option would be to hire more workers and avoid paying overtime which is a good move in providing employment for the unemployed. It is evident that the options available for employers would work towards improving employees’ welfare as well as saving the organization from the challenges of low remuneration.

There are many businesses out there that hire only exempt employees so that they don’t have to pay those employees for additional hours worked on the typical 40 hour workweek. However, if an employee is in fact hired as a non-exempt employee, then he or she must be paid for all

The new regulation was not implemented on a nationwide basis due to an emergency motion given by the Eastern District of Texas. The salary threshold will remain the same it has been. Employees fall under exempt or no-exempt classifications when it comes to overtime standards. Exempt employees are not subject to the Fair Labor Statistics Acts overtime regulations. Most employees that are exempt employees are “white collar” exemptions. This mostly includes employees who are in administrative, professional or executive positions. For non-exempt employees, comp-time systems are illegal. Overtime does not need to be paid to exempt employees by employers to begin with so comp time arrangements are usually worked out well, as long as the base salary of pay is not interfered with. Public agencies are allowed to have comp-time systems. However, they are under statutory requirements

The FLSA regulates this to ensure that the employers are paying fair wages to their employee’s. FLSA also regulates hours worked by an employee to ensure that an employer is paying time and one half for all hours worked past forty in a work week. Minimum wages are different in some states. Many states also have state minimum wage laws.

E. 2015). To begin to comprehend the meaning, plus the impact the FLSA adjustment would have to both the employee and the employer one must first understand the classification of employees among any working firm. The differences between exempt employees and non-exempt employees can be confusing for both workers and employers. Whether an individual is entitled to minimum wage and overtime pay for working more than 40 hours per week depends on your exemption status, as governed by the federal Fair Labor Standards Act. A non-exempt employee is an individual paid the minimum wage plus overtime pay for any time worked beyond 40 hours per week (Perez, 2015). Meaning, if an employee works 45 hours that week minus any holiday, PTO, bereavement, jury duty or vacation pay they would receive their regular work pay rate times