What is the difference between an exempt and a non-exempt employee?

In Maryland, the difference between an exempt and a non-exempt employee is determined by the Fair Labor Standards Act (FLSA). Generally, an exempt employee is one who is salaried, meaning they are paid a predetermined amount of money each month regardless of the number of hours worked. These employees are not eligible for overtime pay. Non-exempt employees are generally paid by the hour and are eligible for overtime pay, which is at least one and one-half times an employee’s regular rate of pay. Another key difference between exempt and non-exempt employees is the number of hours they can work. Employers generally cannot limit the number of hours that an exempt employee works in a week, but they are expected to work whatever amount of time is necessary to get the job done. On the other hand, employers are required to limit the number of hours that non-exempt employees work in a week and are also required to pay them at least the minimum wage. Additionally, exempt employees are eligible to receive certain benefits, such as vacation, health insurance, and retirement plans. Non-exempt employees, however, may not be eligible to receive these benefits in Maryland. Overall, exempt and non-exempt employees are given different rights and benefits under Maryland labor and employment law. Exempt employees are salaried and not eligible for overtime pay, whereas non-exempt employees are hourly and eligible for overtime pay. Additionally, employers must limit the number of hours that non-exempt employees work, but not exempt employees. Finally, exempt employees may receive certain benefits, while non-exempt employees may not.

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What is the difference between an exempt and a non-exempt employee?

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