The simplest answer is that exempt employees are paid a salary for a specified period of time regardless of the number of hours worked. Generally professional, management and other types of skilled jobs are classified as exempt.
A Further Definition: An exempt employee is an employee who, because of his or her positional duties and responsibilities and level of decision making authority is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). Exempt employees are expected, by most organizations, to work whatever hours are necessary to accomplish the goals and deliverables of the position. Thus, exempt employees have more flexibility in their schedules to come and go as necessary to accomplish work as non-exempt or hourly employees.
Unskilled, entry-level, and many technical jobs are usually classified as non-exempt. Non-exempt jobs usually get a wage, or an amount of money per hour. Non-exempt jobs are also paid over-time, that is, extra pay for hours worked over 40 hours a week or on certain days of the week or on holidays.
A Further Definition: A non-exempt employee is an employee who, because of the type of duties performed, the usual level of decision making authority, and the method of compensation, is subject to all FLSA provisions. Non-exempt employees are normally required to account for hours and fractional hours worked. Non-exempt employees must be compensated for all hour worked including overtime hours at the premium (time-and-one-half) rate of pay.
The status of exempt and non-exempt work is the responsibility of the federal Department of Labor. Nonprofits seeking to stabilize costs are tempted to make as many employees exempt as possible. Federal regulations regarding such a determination have become more stringent therefore the organization must carefully evaluate each position.
The status of exempt and non-exempt work is the responsibility of the federal Department of Labor. Nonprofits seeking to stabilize costs are tempted to make as many employees exempt as possible. Federal regulations regarding such a determination have become more stringent therefore the organization must carefully evaluate each position.