Exempt vs. Nonexempt: What Is the Difference? | Getentrepreneurial.com


Learn the difference between hiring exempt and nonexempt employees.

Business owners need to properly classify their employees as exempt or nonexempt to avoid legal ramifications supported by the Fair Labor Standards Act (FLSA).

Exempt employees must earn a minimum of $455 per week; be paid the same amount of money regardless of hours worked; and perform executive, professional, or administrative duties.

Nonexempt employees have no limitations or requirements for the number of hours they can work each week, but they must receive overtime pay if they work more than 40 hours in one week.

This article is for employers who are trying to make the determination between exempt and nonexempt employees.

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