Exempt vs Non-Exempt
This guide will help you understand the difference between exempt employees and non-exempt employees. It will also help you determine if you have been wrongfully classified as an exempt employee.
What is an exempt employee?An exempt employee is someone who receives a set salary and whose pay does not change, regardless of the number of hours worked. In order to be exempt, you must earn $23,660 per year and perform non-manual labor.
What are the benefits of being exempt?If you are exempt, you don*t have to worry about your pay changing from week to week. It does not matter how many hours you work, you will receive the same pay.
What are the bad parts of being exempt?The bad part of being exempt is that you will not get paid for overtime. No matter how many hours you work, you will not be paid overtime. This can result in a significant loss of potential income. That is why it is important to know if you are properly classified as exempt.
What do you need to be exempt?In addition to the salary of $23,660 or more. An exempt employee is someone who:
- Creates company strategy
- Creates corporate policies
- Creates corporate budget
- Manages two or more full-time employees
- Makes important high level business decisions
Misclassified?If you believe that you have been misclassified as an exempt employee, you should contact an employment lawyer. You may be entitled to significant damages and lost income.