When a worker is classified as “non-exempt” it means that an employer is required by law to pay them overtime at time and one half their regular hourly rates under the Fair Labor Standards Act (FLSA) when working over forty hours per week. On the other hand, an employee who is classified as “exempt” is not required to be paid overtime by their employer under the FLSA, and is usually paid a set salary regardless of their hours worked during the week.
There is certain criteria that has been established by the FLSA that must be met in order for an employee to be considered exempt from receiving overtime pay under the law. They include executive, administrative, or professional exemptions. A worker may also be considered exempt if they work in outside sales or work in computer management role. Additionally to be considered exempt an employee must earn a salary of at least $455 per week and their job duties and responsibilities must also qualify as them as exempt:
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