Requirements vary from state to state, but the FLSA classifies exempt employees as any job falling into these categories: Are all employees exempt? What exactly are these employees exempting? Exempt workers must generally receive their full wages, regardless of the quality or quantity of work performed, provided they work part of the working week. You can`t take deductions to free up employee salaries for performance issues. The executive exemption usually applies to senior managers. However, managers must still meet the exemption requirements. If this is not the case, they must be classified as non-exempt, unless they can meet one of the other exceptions. Employees who receive less than $23,600 per year ($455 per week) are not exempt. (Employees earning more than $100,000 per year are almost certainly exempt.) The RSA designates persons who perform exempt professional tasks as part of the “learned professions”. This means that the work they do is intellectual and requires special training. It also means that the work depends on the employee`s judgment and making decisions based on their own expertise. The DOL has established guidelines for determining who is entitled to overtime pay. Employees may be considered exempt if they receive a salary, earn at least $684 per week or $35,568 per year, and perform the duties of one of the exempt occupations (administration, manager, etc.). Well-paid employees who earn $107,432 or more per year also do not need to be paid overtime. Generally, an employee is paid on a salary basis if they have a “guaranteed minimum amount” to rely on for each work week in which they do not work.
This amount does not have to be the total compensation received, but there must be a certain amount of salary that the employee can expect in each work week in which he or she performs work. Some “rules of thumb” that specify that an employee is paid on a payroll basis include whether an employee`s base salary is calculated from an annual amount divided by the number of pay days in a year, or whether an employee`s actual salary is lower during work periods if the employee works less than the normal number of hours. However, whether a worker is paid on a wage basis is a “fact” and, therefore, an accurate assessment of certain circumstances is required. Whether an employee is paid on a payroll basis is not influenced by the fact that wages are expressed in hours (since this is a fairly common requirement of many computer programs for payroll), but by whether the employee actually has a “guaranteed minimum wage” to rely on. You can also discuss your expectations that the exempt employee must be present on certain days of the week to attend meetings, meet predetermined deadlines and consult with colleagues. If you`re a new employer or creating a new position in your organization, you may be wondering how to categorize employee salary status. Let`s take a look at the difference between exempt and non-exempt workers. This may sound like a strange term. What exactly are these employees exempting? The terms “exempt employees” and “non-exempt employees” come from the Fair Labour Standards Act (FLSA). In short, the RSA requires employers to classify all positions as exempt or non-exempt.
Non-exempt workers are covered by the provisions of the FLSA, but exempted workers are not. The most difficult tasks to define and identify are administrative tasks. This is due to the vagueness of these jobs. According to the RSA, administrative tasks are generally not manual or performed in the office. These tasks are usually directly related to the overall business activities and management operations of a business. Discretion and judgment on important matters are important aspects of administrative tasks. In general, administrative employees are high-level employees who perform work essential to business operations. Q: Since the time of exempt employees is not strictly controlled, how can I deal with hours of work and absenteeism? A: You should discuss with the exempt employee the expectations of the position, including the need to be present to perform work essential to the operation of the unit or the need to show up at a specific time to ensure that the workplace is adequately staffed for the company. Discussions should focus on the responsibilities of the exempt employee and how these expectations relate to time spent at work. Note: Under federal regulations, deductions may be made for full-day absences due to sick leave before the employee is eligible for the paid sick leave plan or after the employee has exhausted vacation pay under the plan. For example, an employer`s sick leave plan provides each employee with 10 days of paid sick leave per year.
An employee must work for the employer for 90 days before being entitled to paid sick leave. In this example, federal regulations allow one or more full days to be deducted from the wages of an exempt worker who is absent due to sick leave: Under the overtime rules of the RSA, no entitlement is granted to an exempt employee. The RSA does not prevent an employer from requiring exempt employees to respect certain hours or to strike for one hour. Employers can even ask exempt employees to work more hours to compensate for absences. “Mere supervision” is not enough. In addition, the senior employee must have “management” as the “main task” of the work. The RSA regulations contain a list of typical management tasks. These include (in addition to supervision): Test the Exempt/Non-Exempt wizard > The Exempt/Non-Exempt wizard guides you through a series of questions to help you determine whether a job should be classified as exempt or not. Some workplaces may be completely excluded from coverage under the RSA overtime rules.
There are two general types of complete exclusion. Some jobs are explicitly excluded in the act itself. For example, theatre workers and many agricultural workers are not subject to the RSA`s overtime rules. Another type of exclusion applies to jobs regulated by another specific federal labour law. Generally, the RSA does not apply if a workplace is subject to another federal labour law.