Overtime Exempt or Overtime Not Included? This Compliance Tool Helps You Decide: A blog around employment and legally exempt vs non exempt.

The Fair Labor Standards Act (FLSA) requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.

If you have questions regarding your organization’s classification of Exempt vs Non-Exempt, please contact me at (866) 328-3821 extension 120 or email me at jhurt@plansource

Overtime Exempt or Overtime Not Included? This Compliance Tool Helps You Decide

By:

Holly R. Schreckengost

When I was in high school, I worked at a fast food restaurant. We would often work long hours, and sometimes the store would run out of help. In those instances, my manager would ask me to pitch in and take orders or make fries. Since my primary duty was to manage the cash register, he always told me that this overtime was not included, so I still only got paid my hourly rate for the evening. Over 20 years later, I wonder if he was right.

The Fair Labor Standards Act (FLSA) requires employees who work more than 40 hours per week must be compensated at 1½ times their regular rate of pay for any hours worked over 40 hours per week. However, there are exemptions from this overtime requirement. The FLSA does not require overtime compensation for employees employed as bona fide executive, administrative, professional and outside sales employees as those terms are defined in regulations issued by the U.S Department of Labor (DOL). Employers are responsible for determining whether a particular employee meets an exemption from overtime compensation under the FLSA and must maintain documentation to support its determination that a job

Is your employee classified as a non-exempt (included) or exempt (not included) employee? Use our compliance tool to help you decide.

A recent study by the National Employment Law Project found that more than half of employees who are eligible for overtime pay are not receiving it. That’s a lot of money owed to employees who, in many cases, just don’t know it.

This compliance tool will help you determine if your employees should be classified as exempt or non-exempt, and how much overtime they are owed if they are non-exempt.

Do Your Homework

The first step is to determine whether your state has laws governing overtime exemptions. If so, those laws take precedence over federal law. If your state does not specify its own rules for overtime exemptions, the rules of the Fair Labor Standards Act (FLSA) apply.

So how do you figure out which employees are eligible for overtime pay? The FLSA says that any employee who earns less than $455 per week ($23,660 per year) must be paid time and a half after working 40 hours in a given workweek. Any employee who earns at least $455 per week is considered “exempt” from receiving overtime pay and doesn’t have to meet some or all of

The Department of Labor has recently issued a final new rule, effective 12/1/2016, that increases the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt.

The Fair Labor Standards Act (FLSA) generally provides that employees must receive overtime pay for hours worked in excess of 40 in a workweek unless they meet certain exemptions. The most common exemption is the White Collar Exemption. To qualify for the White Collar exemption, an employee must perform qualifying duties and earn above a certain salary threshold.

Employees who are paid on a salary basis at not less than $455 per week ($23,660 annually) and meet certain duties tests, are considered Exempt or Overtime Exempt.

Employees who do not meet this salary threshold or have other restrictions limiting their overtime hours are considered Overtime Not Included or Non-Exempt.

I have received a few questions recently about the difference between a job being exempt or non-exempt. This is generally a question that comes up when you are hiring an employee who could be exempt or non-exempt, or when an employee who has been classified as exempt, wants to be paid overtime. The questions are not as simple as they may seem on the surface, but this blog will help you answer them.

How do I determine if a position is exempt or non-exempt? Let’s start with what we mean by “exempt” and “non-exempt.” An exempt employee is one that is exempt from the Fair Labor Standards Act (FLSA) overtime and minimum wage requirements. A non-exempt employee must be paid overtime for hours worked over 40 in any workweek if he/she meets certain criteria. So, a position that is “non-exempt” is one where overtime pay must be calculated and paid based on federal law.

So how do we determine if a position is exempt or non-exempt? First, we look at the duties of the position to see if it falls into one of the exemption categories under federal law. There are several exemptions under FLSA: executive, administrative, professional (learned/creative), computer professional, outside

The Fair Labor Standards Act (FLSA) requires covered employers to pay nonexempt employees not less than one and one-half times their regular rate of pay for hours worked in excess of 40 in a workweek.

The FLSA contains numerous exemptions from the overtime requirements. An exemption means the employer does not have to pay overtime to an employee who qualifies as “exempt.” The exemptions are narrowly defined by law. To qualify for exemption, an employee must be paid a salary of not less than $455 per week, and the employee’s primary job duties must meet certain tests related to executive, administrative, professional, computer and outside sales duties as provided in regulations issued by the U.S. Department of Labor’s Wage and Hour Division.

Use this tool to help determine whether your employees will qualify for exemption under the FLSA’s white collar exemptions or if they will be non-exempt and eligible for overtime pay.

The question as to whether or not an employee is entitled to overtime pay has been a thorn in the side of many employers. Remember, when an employer decides to classify an employee as “exempt” from the overtime provisions of the Fair Labor Standards Act (FLSA), it is the employer’s burden to prove that the individual meets the test for exemption.

The determination of whether an employee is exempt from overtime pay depends on: 1) how much the employee is paid; 2) how the employee is paid; and 3) what type of work the employee performs.

Employees who are subject to the minimum wage and overtime provisions of the FLSA are referred to as “non-exempt.” The FLSA applies to both hourly and salaried non-exempt employees, and requires that these employees receive at least minimum wage for all hours worked and time-and-one-half their regular rates, including commissions, bonuses, and incentive pay for hours worked over 40 per week.

Determining whether a job qualifies for exemption can get complicated. For example, do commission salespeople qualify for overtime? Perhaps. It depends on how much time they spend doing non-sales tasks such as inventory control and bookkeeping.

A nonexempt employee’s salary may be determined