What is the difference between Exempt and Non-Exempt?
A.5. Exempt and Non-Exempt are terms that reference the Fair Labor Standards Act. Employees are classified based on defined criteria as exempt from FLSA and paid on a salaried basis, or classified as non-exempt and paid on an hourly basis. The fundamental difference is that a non-exempt employee is entitled to overtime (premium) pay or premium compensatory time off (compensatory time off is an exception allowed to government agencies) whereas an exempt (salaried) employee contracts to perform duties with no expectation for, or legal right to, overtime (premium) payment.
Exempt positions are not subject to overtime based on the provisions of the Fair Labor Standards Act (FLSA). Examples included: Managers, Directors, Coordinators, Executives, etc. Non-exempt positions are subject to overtime based on the provisions of FLSA. Examples include: Grounds Keepers, Office Clerks, and Administrative Assistants. Non-exempt positions are paid on an hourly basis and are subject to overtime if required to work beyond a 40 hour workweek.
Related Questions
- Does the policy on shift differentials effect all classified staff (e.g. both exempt and non-exempt) and will it be up to the units to fund it?
- Is there a list in the California Labor Code that classifies exempt and non-exempt workers?
- What is the difference between an exempt and a non-exempt position?
