Employment Classifications

The following terms describe Fair Labor Standards Act (FLSA) (commonly referred to as the “Wage Hour Law” employment classifications:

Exempt Employees: Exempt employees are not subject to the overtime pay provisions of the federal Fair Labor Standards Act (FLSA). An exempt employee is one whose specific job duties and salary meet all of the requirements of the U.S. Department of Labor’s regulations. In general, an exempt employee is one who is paid on a salary basis at not less than $455 per week who holds an administrative, professional, or management position.

Non-Exempt Employees: Those are employees who are covered by FLSA and are subject to timekeeping requirements and are paid at the hourly rate of pay for up to 40 hours per workweek. All non-exempt employees are required to keep a record of time worked. Non-exempt employees are entitled to compensatory time off or overtime pay for all hours worked in excess of 40 hours per week. Any hours actually worked in excess of 40-hours per week will be credited to compensatory time at a rate of one and one-half times the normal rate, or in few cases the employee will receive overtime pay for these hours. All overtime pay must be pre-approved by the appropriate Vice President or the President. Non-exempt employees are paid bi- weekly.

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