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What is the difference between exempt employee and non
exempt employee?
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Answer Posted / prasanna patil
The Fair Labor Standards Act (FLSA)by US department of labor
requires that companies classify jobs [not position] as
either exempt or nonexempt. Nonexempt employees are covered
by FLSA rules and regulations, and exempt employees are not.
OM Infotype 1610 (US job attributes) table V_T5U13_C is
where exempt or nonexempt info is stored.
Exempt (no minimum wage/no over time/white collar): are
excluded from minimum wage, overtime regulations, and other
rights and protections. Get a salary rather than an hourly
wage. Typically only executive, supervisory, mangers
positions are exempt.
Nonexempt (federal minimum wage/overtime/blue collar): are
not exempt from FLSA requirements. Employees who fall within
this category must be paid at least the federal minimum wage
for each hour worked and given overtime pay of not less than
one-and-a-half times their hourly rate for any hours worked
beyond 40 each week.
Note :
1. no difference in how exempt and nonexempt employees are
taxed.
2. nonexempt employees receive more protection under federal
law than exempt employees.
3. both exempt and nonexempt employees can collect
unemployment benefits
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