Exempt Employees

Posted in Human Resource Terms, Total Reads: 258
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Definition: Exempt Employees

Specific categories of employees are exempt from the Fair Labor Standards Act 1938 or certain provisions of the act, particularly from the overtime provision of the act. Therefore, they are not entitled to overtime pay. Their working hours are not fixed; they are allotted a task which they have to finish within the given period of time. The number of hours an employee is working for is not kept a record of. A person’s exemptions depend on their responsibilities, duties and salary. Most popular are white collar exemptions.


The advantage of this is that employers won’t have to keep a track of the number of hours worked by the exempted employees or pay them overtime, no matter how many hours they have worked for. This makes it appealing for employers, but it is very difficult for the employers have the burden of proving that they have accurately classified the employee as exempt.

Example: Airline employees


An individual is exempted from Fair Labor Standards Act 1938, is he/she fulfills the following requirements:

• Paid on salary basis and not wage

• Performs exempt job duties (mentioned below)

• Paid at least $23000/year or $455/week


Exempted Job duties

• Professional: Professional employees like teachers, doctors and other employees, involved in intellectual jobs. It doesn’t include the jobs that don’t require graduation degrees.

• Executive: Any employee, who supervises, manages and has genuine input into more than one employee’s job status, is exempted from FLSA.

• Administrative: Employees who support the business; non-manual work and performs business operations for employees and the customers.

• Outside sales employees

 

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