Free salaried employee versus non-exempt employee

Although several criteria separate salaried workers exempt from non-exempt workers, the key difference between the state of the exempt and the non-exempt wage earner is the payment of overtime. Exempt employees do not receive overtime pay; non-exempt employees yes. The classification criteria for exempt and non-exempt workers are part of the Fair Labor Standards Act, or FLSA, which is the federal law that regulates the minimum wage, the payment of overtime and hours of work.

Basic salary

The basic salary means that the employee receives a fixed rate of payment for a fixed rate of work hours per week. For example, employers who provide a job offer in writing may say something similar to: “We extend you an offer to join our law firm as a paralegal.” The paralegal position is full-time and pays $ 59,000 per year. When an employee receives the payment of a basic salary, this means that he does not receive payment according to the number of hours he works but to the number of hours that the employer expects. The employer indicates the number of hours in writing or based on an agreement with the employee.

FLSA salary rules

The FLSA regulations concerning the basic salary of employees require at least a minimum of $ 455 a week to be considered a salaried employee. Some states have a minimum weekly salary minimum for salaried employees; Connecticut is one of those states where the minimum for salaried workers is $ 475, instead of the federal limit of $ 455.

Salaried employees exempt

Employees classified as salaried and exempt receive the minimum weekly salary of salaried workers, in addition to being exempt from FLSA regulations on overtime pay based on their job duties and responsibilities. Employees who work in an administrative, executive or professional capacity, in general, are exempt from overtime rules because work involves duties related to the management of the company. Some external members of sales personnel and employees in computer-related occupations are also exempt. The criterion for exempt classifications varies; however, a common element in the exempt status criteria is that employees must use independent judgment when performing most of their job duties.

Salaried employees not exempt

Salaried non-exempt employees receive a wage rate for a fixed number of hours. However, when they exceed the set number of hours and work more than 40 hours per week in a week, they receive compensation for overtime. The basis of the calculation of overtime compensation is the equivalent hourly rate earned by the employee. For example, a paralegal who earns $ 59,000 a year earns the equivalent of $ 28.36 per hour, based on a 40-hour work week. For a 37 and a half hour work week, the $ 59,000 employee per year earns the equivalent of $ 30.25 per hour. The rate of overtime for non-exempt salaried employees is the same as for non-exempt hourly employees: one and a half times the hourly rate. Therefore, the legal assistant 40 hours per week. The legal assistant with a 40-hour work week can earn $ 42.54 for each hour that exceeds 40 hours per week. The legal assistant with 37 and a half hours per week earn $ 30.25 for the two and a half hours to get to 40 in the week, and then $ 45.37 for each hour that exceeds the work week of 40.

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