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The Fair Labor Standards Act (FLSA), governs the process that Compensation Analysts use to determine whether a position is either eligible for over-time pay for hours worked in excess of 40 per week (non-exempt) or is paid a flat sum for hours worked, even if they exceed 40 hours within a workweek (exempt).
Exempt employees usually hold administrative, professional, or executive positions. Theyre exempt from the Fair Labor Standards Act overtime regulations and, therefore, not entitled to overtime pay. Nonexempt employees are typically paid hourly and perform more manual or technical duties.
Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.
Executive, administrative, professional and outside sales employees: (as defined in Department of Labor regulations) and who are paid on a salary basis are exempt from both the minimum wage and overtime provisions of the FLSA.
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