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Exempt vs Non-Exempt Employee | ADP The key difference between exempt and non-exempt employees is that non-exempt workers are entitled to certain protections under the Fair Labor Standards Act, a federal law that sets minimum wage and overtime requirements
Exempt vs. Non-Exempt Employees: Key Differences Explained Non-exempt employees get overtime, exempt employees don't Employers must follow federal and state rules for overtime Roles must meet salary and duty criteria to qualify as exempt Audits, training, policies, and tools can help ensure compliance
FLSA Checklist: Exempt vs. nonexempt status It’s up to employers to determine whether to classify an employee as exempt or nonexempt under the Fair Labor Standards Act (FLSA) The key consideration: Exempt workers aren’t eligible for overtime pay Rather, they’re paid for the job they do, not the hours they keep
Exempt vs Non-Exempt Employees: Which Status Affects Your Pay? Exempt employees are workers who are not entitled to overtime pay and are "exempt" from certain FLSA provisions To qualify for exempt status, employees must pass three specific tests: First, they must receive payment on a salary basis rather than hourly
Classification of Employees Exempt vs. Non-Exempt to the worker A Non-Exempt Employees Defined • For the purposes of employee classification, non-exempt employees are not exempt from the FLSA’s rules on wages and paid overtime and therefore are entitled to minimum wage protections and additional compensation for