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What makes a position exempt vs non-exempt?

Employees who are paid less than $23,600 per year ($455 per week) are nonexempt. (Employees who earn more than $100,000 per year are almost certainly exempt.)

Is exempt the same as salaried?

No. A salary is a form of payment and does not determine exemption status. Exempt and nonexempt employees can both be paid on a salary basis.

What are the benefits of being exempt?

Key takeaway: The advantages of hiring exempt employees include no overtime pay and more knowledge and responsibility. Downsides include higher pay rates and no ability to deduct pay for hours not worked.

What is the difference between exempt and nonexempt employees?

The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.

What does exempt and nonexempt employee mean?

Employees who meet the requirements for exemption, are paid on a salary basis, and the salary meets or exceeds the salary threshold are considered salaried exempt. Employees who do not meet the requirements to be classified as exempt from the Minimum Wage Act are considered nonexempt.

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