How Do You Determine If An Employee Is Exempt From Overtime Pay?
What is an Exempt Employee? The simplest definition of an “exempt” employee is an employee who is not eligible to receive overtime pay. In most cases, this will also mean the employee receives a salary. Salaried Workers Are Usually Exempt Employees The term “salaried employee” is often used in place of “exempt” to describe an employee but this is not entirely accurate. There are certain situations where salaried workers may be also entitled to overtime pay (and situations where hourly workers may not always be eligible for overtime pay). An exempt employee is never determined by their job title or even whether or not they are salaried or paid by the hour. An exempt employee is determined using a combination of criteria including their occupation (or industry), rate of pay, and the job duties that they perform. But if a position is considered exempt, Federal law requires exempt employees to be compensated with a salary, with one exception: certain computer professionals. How Federal Law
Related Questions
- Is it necessary to change the Employee Subgroup in HRMS for salaried overtime exempt employees to hourly overtime eligible during the week of a temporary layoff?
- Is a salaried employee required to work as many hours as the employer wants without being compensated?
- What factors determine whether an employee is salaried overtime eligible or not?
