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How FLSA Exempt Employees Are Paid

Exempt employees

Generally speaking, FLSA exempt employees are paid a set salary and are not entitled to overtime pay. However, there are some exceptions to the rules. These include employees who are engaged in labor-intensive work, such as agricultural workers, movie theater employees, or seamen on American vessels. These exemptions may be subject to interpretation, so it’s a good idea to talk with a compensation attorney before adding a new employee.

In order to be classified as an FLSA-exempt employee, an employee must meet three tests. This classification depends on the type of work performed, as well as the amount of pay. Most employees are classified as exempt when they earn more than $455 per week. Some types of jobs, such as administrative positions, have higher thresholds. This classification is also known as the “salary basis test.” It is important to note that a reduction in base pay does not necessarily mean that an employee is classified as exempt.

Administrative employees perform non-manual work, primarily related to the general business operations of the company. These duties include human resources, accounting, and tax, as well as quality control. In addition, administrative employees must exercise independent judgment on significant matters. It is imperative that these individuals be able to work independently, as well as meet the needs of the organization.

Professionally exempt employees are those who are considered to be highly skilled, educated and trained in a certain area. While these workers are usually easy to identify, the actual job duties of these employees can vary from one position to another. This makes it necessary for employers to take a careful look at the responsibilities of each position before classifying an employee.

In determining whether an employee is exempt, the Office of Human Resources will use the criteria established by the FLSA. The criteria include a salary, the number of hours worked in a pay period, and the amount of time a person spends performing tasks outside of a regular work unit. In most cases, administrative employees are high-level professionals. Other types of exempt employees include artists, musicians, and cartoonists. While the details of a specific position can vary, the basic requirements for all administrative employees are to be able to carry out non-manual, office work.

Employees who are classified as FLSA nonexempt are expected to be paid a minimum wage and must be eligible for overtime pay if they work more than 40 hours in a workweek. Overtime compensation is not mandatory for exempt employees, but it is a requirement under State policies. There are some exceptions to this rule, including workers in nursing homes, hospitals, police, and firefighters. It is important to note that if an employee works more than forty hours in a week, he or she is not eligible for compensatory time. If the employee has a disability, he or she may be deducted from the paycheck, but this is not a reduction in “pay.”

The third test is the “salary basis test”. This test is applicable to the amount of money an employee is actually paid. An employee is exempt if the guaranteed amount of pay meets the salary basis requirements. This amount can be reduced if the quality of work performed exceeds that of the guaranteed amount.

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