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Generally, exempt employees are paid more than nonexempt employees, because they are expected to complete tasks regardless of the hours required to do them. If staying late or coming in early is required to do the job, exempt employees are frequently expected to do just that.
The adjective exempt traces back to the Latin word exemptus, meaning to remove or take out or to free. So if you are exempt, you are free of an obligation that others have to fulfill, such as paying taxes.
An exempt employee is someone whose job is not subject to one or more sets of wage and hour laws. In most cases, there are three simple requirements to determine whether a worker is an exempt employee under California law: Minimum Salary.
An exempt employees salary cannot be subject to deductions because of variations in the quantity or quality of the work performed. Unauthorized reductions in a salary destroy the salary basis requirement, which means the affected employee does not meet the requirements to be exempt from the Minimum Wage Act.